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“Marketers welcome today we re going to take a look at product life cycles yes. Yes. That fascinating look at how products evolve. Where do they go how long do last and well.
How do they die. Really alright. So make sure you get your paper make sure you get out your notes make sure you follow the storm philosophy sit back and enjoy alright so what are we going to look at today what we re going to connect product lifecycle back to the proc development stages. Then we re going to take a look at product lifecycle on its own and identify the various four stages that the products will go through introduction growth maturity and retirement or decline.
The whole idea of the product lifecycle is to look back to the product development product lifecycle start after we hit that last final stage of market entry. Once the product is launched in the market. Then the product life cycle will begin and not until then all those other stages need to be accomplished first so once the product does enter the market then the product life cycle begins and these stages that the product travels through goes from it s very beginning inception to the very end. And it s a tool used by market professionals to understand the market.
What s going on with the products. Where is it heading as far as the prop goes and therefore. It can accommodate and change and modify. The marketing mix.
Why is it call a product lifecycle well think of simba and the lion king. The circle of life. Yes. The products go through a circle of life where it begins.
And it ends. And it will continue and start all over again and products continue continue to travel through the product life cycle. And we ll see how they can do so it when it gets to its end of its life. What needs to be done for marketers to continue the life cycle again to the four stages introduction or birth growth maturity retirement or decline and so how these four stages play out has to do with these sales where the product starts.
How it goes through the growth stage and sales increases to the peak maturity to them the retirement and decline each of these stages brings with it a new set of challenges. A new set of expectations and sales will occur in each of these stages at different rates. So let s take a look at the burst. Age.
The birth stage is also called the product launch stage now. This is a very expensive face why because there s all sorts of high costs associated with the design. The manufacturing. The promotion right the manufacturing to make up a lot of inventory.
So that you can sell it for this anticipated demand. So all these costs really play a huge role here. Other costs also include that you have to come up with new packaging and new labeling and marketing research. Right think about those product development stages.
All of those are a part of this cost of introducing the product to the market. What you hope for though in the market introduction is that early adopters will catch on and buy your product first these are people who look for new and exciting products they want to be the trendsetters. They want to be the first ones in the market to buy the product and tell all of their friends think about those iphone customers who lineup days in advance for the newest iphone and connecting this back to what we ve looked at before as far as push and pull strategies markers really try and do a lot of push and pull strategies during the birth stage right they re trying to create buzz for the product. So they push the product into the marketplace to get people seeing it when it s right in front of their face.
They might buy it right so trying to obtain that preferential floorspace right in the middle of the grocery store right in ilvl. They re also trying to create advertisements that generate that buzz right some new and exciting product commercials that you see on tv will always say new and improved or new and exciting or all these things samples coupons other promotional techniques are added to this as well to try and get people into the store lure them in and get them to buy the product..
So a quick recap market. An introduction high investment therefore less profits. There s very minimal competition. Though as well because there s not a lot of people entering the marketplace with the same product.
So the company is trying to really gain acceptance and gain that initial distribution come needs a lot of both push and pull promotions right you want to target the customers to increase their awareness and buy the product. You also want to target the channel to increase confidence in the products of a stores will stock more which now brings us to the growth stage yes you can see the sales starting to increase so the growth stage occurs after these early adopters buy it and they start telling their friends where viral marketing is so important in the growth stage. You want all these people who bought the product originally to tell their friends and say how awesome your product is right so all these other consumers are likely to follow those early adopter right so if your product is visible and it s out there in the daily lives of consumers and in the media. Then you ll see consumers starting to buy it and that you they ll see neighbors using it they ll see their friends using and they ll they ll buy more and more product.
The growth stage is considered to be the most crucial stage for marketers. Because this is where the products either going to catch on and be successful or fail hashtag fail right so. If the product is removed from the market before it has recovered those costs of production that market introduction stage. Then is what we call a bust.
Think of the crystal pepsi product that i told you about or arch. Deluxe. Or the delorean or the ibm pc jr. Right all these products never really recoup those costs of production.
We call these products bust products so again. Some characteristics. Some recap to the growth stage right product is successfully launched. We re past that now now we re trying to see and hope to see actually the demanded distribution is going to increase competition.
However is also going to intensify because more and more competitors are going to enter the market. So the company might introduce secondary products or support services for the procs to help consumers you know understand their product. More and use it more and hopefully better revenue generation is happening and the return on investment is occurring so sales are increasing. But the increase to a point and they hit this peak and we call this peak.
The maturity stage so in proxy. The maturity stage the store sales really start to level off right they might still increase. But at a very slower rate. So marketers want to keep their brand out in front of the consumer and remind them as much as possible of their features right the utility.
The lasting power of the product. They re not going to generate necessarily new sales. It really want to just keep those returning customers coming back and buying their product. And if you can somehow keep those customers coming back and buying your product.
Then this is where you re milking right. This is where you re milking that cow that product that you have and you just keep milking. It and that s all money and you re in your pocket right manufacturers have already recouped the major costs associated with the research. The development the production so any new costs are associated with distribution and that s low.
So companies are making the huge profits during this stage. So they can maintain that maturity stage over a longer period of time. This is where they can make some serious serious dough so quick recap competition. It is great right it s probably the highest that it s ever been because everyone wants to get in on this action and get all that money that you re raking in the product is established and therefore you don t really have to spend any more money on promotion or less money.
I should say on promotion. There s little growth potential as well for the product..
So you re not really going to waste your time trying to figure out how to grow it more you re going to use penetration pricing and lower lower profit. Margins are a result of that you re going to focus towards extending that lifecycle extending this stage. Especially because you want it again maintain market share and capture all those consumer dollars. And you want to convert any customers who are out there in the market that you operate in to your own products so away from your competitors products so that you can again take in more and more profits so you maintain that maturity stage as long as you can.
But now all of a sudden. It s starting to decline. This is the retirement decline stages when sales really start to decrease. So the decline happens as a result less and less people are buying your product.
You re unable to find these new customers right so you ve entered your retirement eight years. So this is could be a temporary decline it could be reversed. But in all often cases. It s pretty difficult to reverse that right so if your efforts are unsuccessful.
You can t reverse your decline. Then you have to really look at yourself in the mirror are you going to redesign your product. You are going to repackage your product are you going to reformulate your marketing efforts right so if you can t change it around you have to think about doing something and if you don t turn it around what comes as a result well unfortunately this could be the end of your products life. And so.
The decision point stage comes. So this is an extension of the retirement decline. So this is where you can do one of four things really at one do nothing leave it alone maintain it your product status quo. Hope that can heather s exit.
The market and then hopefully you ll capture all the customers who are left and you ll have probably a niche market as a result to reduce your marketing support right costa long until there s no more profit right. So you can t make anything else you ve reduced all of your costs associated with it and therefore you re just waiting out the days until that time comes three discontinued. The products stop producing it stop making it right if there s no profit that can be made then it might be time to just end it or four you could modify it you could try and modify. The product in terms of redesigning.
It adding new colors to it new packaging relaunch. It as new and improved or maybe you do change the product in itself. In some way and make it really new and improved. So there s one of four options that you can really look to do and so.
When you stand back and look at the product lifecycle. You see your introduction growth maturity and decline you see sales increase through each of these stages until maturity in which it starts to come down. What you see though is the profits profits don t really start until. The growth stage and then they increase and then they start to decline as a result of the sales decline.
So you can t expect profits right away. But what you hope to do is extend growth and maturity to such limits that you really milk your product and generate a lot of sales and therefore a lot of profit. So this brings us to the end of our video lecture. So i want you to do two things first off.
I want you to identify a product that you believe is entering that decision point stage. What would you do predict what a marketer would do what the company would do what might they do to change things to turn things around would you do the same thing and to what is the main reason for discontinuing. A product. Why is discontinuing a product such a problem for marketers.
It s not easy they don t jump to this right away. So why would they not do so alright..
So make sure you get your notes in order. Make sure you have follow destorm philosophy. And we will see you all tomorrow. That s it that s all that s everything take care.
mond e. Upon initial smell. I get like a cherry like thing and then it kind of disappears. It s like a cherry liqueur.
I don t know where that s coming from maybe a fusion of the tonka and the how almonds together with the magnolia and then all you re smelling are the almonds with the tonka seems like me. And my selfie is a lot louder than the last two we smelled. And it s a little louder than the first one as well the almonds are pretty strong. The tonka is pretty strong magnolia is lighter for sure but overall as the.
Scent this is stronger and it is 300 more for the 30ml but you got to like that weird cherry thing that that kind of hooked me off for a bit. But then it kind of became normal because i kind of got into it and smelling it along with the almonds and tonka it doesn t remind me of lost cherry or anything like that that cherry seems a little cheaper. These are after all very inexpensive fragrances. So it doesn t smell as a luxurious as the tom ford.
But i think if you re looking for an alternative you might dig it dig this one anyway mean my selfie. I would wear this one it s not my favorite. Although almonds are fun. It s you know slightly going on so.
I m fine with that now this last. One glittery mood is probably going to be the most feminine one i feel like that s what i read and this one again is also 1590 and the large size is 2999. To refill and glittery mood is this it looks like a glitter bottle. Let s figure.
This one out it s got blackcurrant musk and peony peony. So maybe not necessarily ultra feminine all right well this one is my least favorite out of all of them. I think everything smells very cheap and synthetic here. It s just something s wrong with it everything is very sharp right off the bat and i don t like it it reminds me of like fruits with like cucumbers or melons or something something s off here.
Which doesn t really smell very pleasant. I mean. It s not a bad smell it just doesn t do it for me like i feel like i want black currants. I m getting cucumbers with black currants so it s some weird crunchy fruity and vegetable ii along with the fruits here so i don t really care for this one.
I feel like it can settle down. But you might be into it and for 1590 you might like it i like the bottle its glittery. It s a little you know what do you call. It it s got like a edge.
It s got like um glitter actually pasted on the bottle. So it makes it a very unique bottle and again it s settling down. Nice. But upon initial spray like the first blast wasn t very pleasant to me.
So. That s my least favorite glittery mood..
So feels like summer feel like it s more settled now. I feel like i m getting a lot more sandalwood. The orange is kind of fizzled away as i was saying earlier apricot is definitely there and i feel like apricots are not really my favorite fruits in fragrances. But it s it s okay here it almost like i want more orange.
But it orange seems to be the one that fades away the fastest and so if i was to break this down into a top notes heart notes and base notes. You got the orange first in the heart. I mean in the top apricot in the heart and then sandalwood in the base. But i don t think these are really broken down that way.
But that s how i would do it i mean its pleasant it s a pleasant scent. I would wear this one for 1219 it s it s a good deal but i think if you want something a little more complex this might not cut it for you. But if you re looking for something cheap and different. I think these are definitely winners.
Definitely the first four the last one glittery mood is my least favorite as i said it s a weird weird smell fruity with cucumbers or something vegetal crunchy together so it just put me in the you know didn t do it very well for me. And then somewhere nowhere. I really enjoyed the lemon magnolia and musk together is quite lovely this one cotton kiss. It s very very very very soft um.
These these don t have very good longevity. I feel like another time testing them out they have fizzled away. Although feels like summer seems to be lingering on a little longer. But i think out of all of them for me me.
And myself ii is probably going to last the longest almonds tonka and magnolia. But that cherry seems a little bit cheap for me. But overall. I feel like these are fine guys have you tried these fragrances from zara.
The improbable series fragrances. I wish i was able to get a feels like winter. But unfortunately i did not but that one has notes of vanilla violet and jasmine so again these are very very. Inexpensive if you re looking for something cheap 30ml for 1299.
It s less than a decant. Some places that you would buy coz deakins cost a lot of money and some of these do do really do work well. And i feel like feels like summer will definitely do wonderful when in the summer time i mean especially since its drying down to that sandalwood ii base. I feel like it s got it s gonna have a little better longevity than some of the other fragrances anyway feels like summer somewhere know where cotton kiss mean my selfie and if you like glittery mood from zara anyway guys thanks so much for watching today.
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This video explores the path products take through their lives – Introduction/Birth, Growth, Maturity, and Retirement/Decline. Also it will illustrate what choices need to be made at the Decision Point stage of a product s life.
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