Product Decisions Flashcards
What is the Product Life Cycle?
Introduction
Growth
Maturity
Decline
PLC:
Introduction:
Product 1st appears in the marketplace
High risk of failure
Marketers should be alert for product weakness and make corrections quickly to prevent product failure
PLC:
Growth:
Sales rise rapidly and profits reach a peak and then start to decline
Product pricing is aggressive
Production efficiencies lower costs
Brand loyalty become simportant
PLC:
Maturity:
The sales curve peaks and starts to decline and profits continue to fall
Intense competition
Emphasis on improvements and differences in competitors’ products
Distribution sometimes expands to the global market
PLC:
Decline:
Sales fall rapidly
Planning to phase out the product
Opportunity to reposition the product to extend its life
Eliminating marginal distributors
What is the Product Adoption Process?
The mental process through which an individual passes from first learning about an innovation to final adoption
What are the 5 Stages in the Adoption Process?
Awareness Interest Evaluation Trial Adoption
What are the Individual Product Decisions?
Packaging Labelling Product Modification Product Deletions Product Differentiation
Individual Products Decision:
Packaging:
Involves the development of a container and graphic design for a product
Functions - Protect the product etc.
New packaging can give a competitive advantage
Individual Products Decision:
Labelling:
Providing identifying, promotional or other information on package labels
Individual Products Decision:
Product Differentiation:
Creating and designing products so that customers perceive them as different from competing products
What are the five adopter groups?
Innovators Early Adopters Early Majority Late Majority Laggards
