Product Life Cycle and Marketing Strategies

These flashcards cover key concepts about the product life cycle, customer behavior, marketing strategies, and reasons for product failure.

Harvesting vs Deletion Strategy

Two choices at the product stage: maintain as is (harvesting) or remove it entirely (deletion).

Product Life Cycle

Stages: Introduction, Growth, Maturity, Decline, each requiring different marketing strategies.

Introduction Stage

Create consumer awareness and maintain quality, but expect low profit and slow sales.

Growth Stage

Sales rapidly increase, with peak profits and market expansion, but more competitors enter.

Maturity Stage

Sales growth slows; profits decline due to price competition and focus on customer loyalty.

Decline Stage

Sales drop with minimal marketing efforts as product phases out.

Usage Barriers

Barriers preventing consumers from purchasing new products.

Value Barriers

Lack of incentive for consumers to switch to a new product.

Risk Barriers

Perceived social or economic risks involved in trying a new product.

Psychological Barriers

Cultural or image-related differences that deter purchase.

Product Quality Enhancement

Improving perceived attributes and performance to add consumer value.

Feature Bloat Fatigue

Consumer fatigue from products overloaded with features.

Ansoff Matrix

Framework for growth strategies including Market Penetration, Product Development, Market Development, and Diversification.

Product Extension Strategy

Selling the same product in different countries without significant changes.

Product Adaptation Strategy

Changing a product to meet local preferences or climate.

Product Invention

Creating entirely new products designed for common needs across markets.

Marketing Failure Reasons

Factors like insignificant differences and poor market understanding that lead to new product failures.