Product Life Cycle Stages

• Introduction Phase

  • The beginning of a product's market entry where awareness is built.

  • Companies invest heavily in marketing to promote the product.

• Maturity Phase

  • During this phase, the product is well-known and has a stable market presence.

  • Competition may increase as more competitors enter the market.

  • Companies focus on differentiating their product from competitors to maintain market share.

• Decline Phase

  • Interest in the product decreases, leading to lower sales.

  • Companies may discontinue the product if it becomes unprofitable.

  • Often involves strategic decisions about product discontinuation or innovation.

Product Line Extensions

• Definition: Adding new products to an existing product line to appeal to more customers.

• Example: The iPhone series' evolution from iPhone 1 to iPhone 16 Pro.

• Benefits of Extensions:

  • Helps in capturing new market segments.

  • Keeps the brand fresh and relevant.

Innovation in Services

• Service innovations are crucial in adapting to changing consumer needs.

• Example: Connecting patients with overseas consultancy services when local services are unavailable.

Service Performance and Delivery Methods

• Need to enhance or facilitate service delivery methods.

  • Resequencing of service delivery can improve customer experience.

  • Consideration of supplementary services that can enhance the value of primary services.

  • Explore self-service options for greater customer control.

New Service Development Success Factors

• Importance of reengineering processes to improve service delivery.

• Training staff to meet service quality expectations is critical.

• Understanding customer needs and adapting services accordingly is essential.

Driverless Car Experience Example

• Overview of the Experience:

  • Scenario of using a driverless car (Waymo) faced unexpected challenges.

  • Issues with navigation and incorrect drop-off location.

  • Frustration due to lack of control and confusion during the ride.

• Lessons Learned:

  • Importance of reliable communication and technology in new service models (e.g., driverless vehicles).

  • Key takeaway: Continuous improvement and adaptation are necessary in service innovations.

Future of Services

• Anticipation of a shift towards consolidated services in the near future.

• Online services will evolve with technological advancements such as AR/VR.

• Expect changes in consumer experiences regarding both online and physical interactions.

Product Life Cycle Stages

Introduction Phase

• The introduction phase marks the beginning of a product's market entry. Key activities in this stage include building consumer awareness through extensive marketing campaigns.

• Companies typically invest heavily in advertising, promotions, and public relations to inform potential customers about the new product.

• Early adopters play a crucial role during this phase as their feedback can shape the product’s development.

• Pricing strategies are often introduced, which may include penetration pricing to attract customers or skimming pricing for more profit-dependent strategies.

Maturity Phase

• In the maturity phase, the product is well-established within its market, experiencing stable sales and a significant customer base.

• As competition increases, with often multiple brands offering similar products, companies focus on differentiating their products to maintain or grow market share.

• Strategies may involve enhancing product features, improving quality, or altering marketing tactics to appeal to changing consumer preferences.

• Companies may also explore market expansion strategies by targeting new demographics or geographical areas.

Decline Phase

• The decline phase is characterized by a decrease in consumer interest and sales, often leading to lower profitability.

• Companies must make tough decisions about their product lines—options may include discontinuing unprofitable products or revamping existing ones to revive interest.

• This phase requires careful market analysis to determine whether to innovate or phase out the product while considering financial implications.

• Some companies might also look to segment their target audience to identify niche markets that could still be profitable.

Product Line Extensions

• Product line extensions involve adding new products or variations to an existing product family to appeal to more customer segments.

• An example is the evolution of the iPhone series from the original iPhone to the latest iPhone 16 Pro, demonstrating how brands can adapt to technological advancements and consumer expectations.

• Benefits of Extensions:

  • Help capture new market segments by diversifying offerings.

  • Keeps the brand fresh and relevant, which can strengthen brand loyalty.

  • Creates opportunities for cross-selling among existing customers.

Innovation in Services

• Service innovations are vital for businesses aiming to adapt to the evolving consumer landscape, addressing shifts in needs and preferences.

• For instance, connecting patients with overseas consultancy services when local options are limited showcases how tech-enabled services can fill gaps in the market.

• This innovation can improve service delivery and customer satisfaction by offering alternative solutions.

Service Performance and Delivery Methods

• Enhancing service delivery methods is essential for improving customer experiences.

• Resequencing service delivery can optimize customer interactions, making services more efficient and responsive.

• Businesses should consider supplementary services that enhance primary offerings, such as providing comprehensive customer support or customization options.

• Exploring self-service options, such as online portals, allows customers greater control and flexibility in their interactions.

New Service Development Success Factors

• Reengineering processes is critical to improve service delivery and ensure that services meet customer expectations.

• Training staff to uphold service quality is imperative, as knowledgeable and skilled employees can address customer needs effectively.

• Understanding customer preferences—gathering feedback and monitoring trends—ensures that services remain relevant and competitive in the market.

Driverless Car Experience Example

Overview of the Experience:

• A scenario describes the use of a driverless car (such as Waymo), which faced unexpected challenges during the ride.

• Issues included navigating complex urban environments and delivering passengers to incorrect drop-off locations, leading to frustration and confusion.

• This experience highlights the current limitations of technology and the lack of control passengers might feel in autonomous vehicles.

Lessons Learned:

• It underscores the necessity of reliable communication, advanced technology capabilities, and continuous updates in new service models like driverless vehicles.

• Key takeaways emphasize the importance of continuous improvement in technology to adapt to customer needs and expectations in the evolving service landscape.

Future of Services

• Experts anticipate a shift towards more consolidated services, driven by advancements in technology.

• Online services are expected to evolve significantly, especially with the increased integration of technologies like AR (Augmented Reality) and VR (Virtual Reality).

• Consumers will likely experience changes in both online and physical interactions, leading to more enriched, interactive, and personalized service experiences.