class 8

Product: A good or service that meets customer needs and wants.
Price: The amount of money customers must pay to acquire the product.
Place: The distribution channels used to deliver the product to customers.
Promotion: The activities and strategies used to raise awareness and persuade customers to buy the product.

Question for Reflection: What type of consumer are you when you learn about a new product? Do you adopt immediately, wait for a sale, or follow another approach?

The product lifecycle refers to the stages a product goes through in the market, influenced by the market, which, in turn, dictates marketing objectives and the marketing mix.

Introduction
- Goal: Gain awareness among potential consumers.
- Competition:
  - Few competitors initially.
- Product Strategy:
  - Pricing may include skimming or penetration strategies.
Growth
- Goal: Differentiate from competitors and increase market share.
- Competition:
  - More competitors emerge.
- Price Strategy:
  - Focus on gaining market share.
Maturity
- Goal: Maintain brand loyalty and defend market share.
- Competition:
  - Many competitors, including variants.
- Place Strategy:
  - Maximize distribution outlets.
- Promotion Strategy:
  - Stress points of difference.
Decline
- Goal: Harvest or delete the product as sales drop.
- Competition:
  - Reduced competitors remain in the market.
- Price Strategy:
  - Focus on staying profitable and managing costs.
- Place Strategy:
  - Reduce channels as the product becomes less viable.
- Promotion Strategy:
  - Minimal promotion as interest wanes.

Concept applied to technology products, where:
- Visionary consumers tend to adopt early (Innovators and Early Adopters).
- Pragmatic consumers typically delay adoption until proven successful.

2010-2011: Focus on driving trial and awareness.
2011-2012: Emphasis on differentiation and product variations.
2013-2017: Maintain market share, control costs, and continuously update models.

Awareness: The consumer learns about the product and seeks more info.
Interest: The consumer finds the product relevant and seeks more information.
Evaluation: The consumer compares the product against alternatives.
Trial: The consumer tests the product for the first time.
Adoption/Rejection: The consumer decides to either adopt or reject the product.

Compatibility: How well the product fits with existing values and experiences.
Trialability: The degree to which a product can be tried on a limited basis.
Relative Advantage: The perceived improvements over existing solutions.
Product Complexity: The difficulty of understanding and using the product.
Perceived Risk: The perceived uncertainty in adopting the product.

High-learning product: Complex items requiring significant consumer education, leading to a longer introduction phase.
Low-learning product: Items that are easily understood leading to quick user acceptance.
Fashion product: Items with short lifecycle trends, needing ongoing innovation.
Fad product: Items that enjoy temporary popularity and a quick decline.

Innovators (2.5%): Adventurous, well-educated, willing to take risks.
Early Adopters (13.5%): Visionary and enthusiastic individuals who lead in social settings.
Early Majority (34%): Pragmatic users who make decisions based on practicality and social influence.
Late Majority (34%): Skeptical users who often adopt due to necessity.
Laggards (16%): Conservative users who resist change and value tradition.