Product by yurtgc548

VIEWS: 8 PAGES: 21

									Product…Service
Marketing Defined
Product Lifecycle
Stage 1: Introduction
   Program first introduced
   Small number of participants
   Little or no profitability
   Disproportionate demand on resources
   Slow growth period
   Not much direct competition
Stage 1: Introduction
   Marketing Implications :
       Modify product to address oversights in the
        creation…from test markets
       Modify based on feedback from initial
        participants
       Heavy emphasis placed on promotion
           2 for 1
           Free class, 1 mo. membership
Stage 2: Growth
   Rapid growth in # of participants
       Early participants stay & new ones are added
   Sharp increase in revenues
   Maintain high quality of product to ensure
    continued participation
   Demand may exceed supply
Stage 2: Growth
   Marketing Implications:

       Word of mouth generates awareness


       Begin creating user loyalty
            Fix program issues, problems


       Promo is no longer a major focus
            Work to attract new customers
Stage 3: Maturity
   Participation increases but not at the same
    pace as take-off

   Outside competition enters the market

   Longest stage, most products here
       Most marketing mgt deals with maturity stage
Stage 3: Maturity
 Marketing        Implications :

     Try a different marketing strategy
        Sales

        Ad   campaigns…Coke

     Generate ideas & strategies to maintain
      loyalty & interest

     Look for new target markets
Stage 4: Saturation
   Reached its peak period of success in
    terms of participation

   Program is dependent upon repeat
    participation

   Replacement of drop-outs with new
    consumers – steady #’s
Stage 4: Saturation
   Marketing Implications:

       Decisions:
          Modify  the program or let it decline?
          Can agency compete with others?

          Is it worth the costs to continue?
Stage 5: Decline
   Decline in the # of participants

   People get into more interesting/different
    programs

   Options during this stage
     Petrification
     Death
     Extension…
Stage 5: Decline
   Death
       Let enrollment stop a
        program


   Petrification
     Let it go
     Take on a new format
      or self run
   Extension….
                          Product
                    Existing           New

                                    Product
                      Market      development
         Existing   penetration
Market




                                  Replacement




                       Market
          New                     Diversification
                    development
Extension Strategies
   Market penetration
        Existing product & market
        Leave the product as is & go deeper into the
         market
        Increase participation in current target market
        Go after competitor’s consumers
        Attract non-users
        Used during onset of saturation stage
Extension Strategies
    Market
     development
     Existing product,
       new market
           Minority market,
            women, outer
            markets
       Used in saturation
        or early decline
Extension Strategies
    Product development
     Existing market, new product
           Develop a new product for the same
            market of the declining program
               Softball league vs clinic
               Canoe trip vs camping trip



       Used in saturation or early decline
Extension Strategies
   Replacement
       New product, existing market
       Replace with an improved
        version
       Intro new features of product
       Develop quality variations
       Used in the saturation or decline
        stage
Extension Strategies
   Difference between Replacement & Product
    Development

       Replacement – improved version
       Development – new product
Extension Strategies
   Diversification
       New product, new market
       Focus on expansion to attract new users
       Used in the decline stage
       Begins the life cycle over again
Why Product
   Dictates target market & other elements
    of marketing mix
   Developed to meet needs to cause an
    exchange
   Manipulated to increase sales

								
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