《Marketing English》课件-Unit 9课件-英语

Unit9.ProductLifeCycleandItsMarketingImplicationsWhatisaproductlifecycle?Aproduct'slifecycle(PLC)canbedividedintoseveralstagescharacterizedbytherevenuegeneratedbytheproduct.Ifacurveisdrawnshowingproductrevenueovertime,itmaytakeoneofmanydifferentshapes,anexampleofwhichisshowninthenextchart.

Theproductlifecycleconceptmayapplytoabrandortoacategoryofproduct.Itsdurationmaybeasshortasafewmonthsoracenturyormoreforproductcategoriessuchasthegasoline-poweredautomobile.Productdevelopmentistheincubationstageoftheproductlifecycle.Therearenosalesandthefirmpreparestointroducetheproduct.Astheproductprogressesthroughitslifecycle,changesinthemarketingmixusuallyarerequiredinordertoadjusttotheevolvingchallengesandopportunities.3TimeProductDevelop-mentIntroductionProfitsSalesGrowthMaturityDeclineLosses/Investments($)SalesandProfits($)SalesandProfitsOvertheProduct’sLifeFromInceptiontoDemiseProductLifeCycleStages

(SeeP161Fig.9.1)IntroductionStageWhentheproductisintroduced,saleswillbelowuntilcustomersbecomeawareoftheproductanditsbenefits.Somefirmsmayannouncetheirproductbeforeitisintroduced,butsuchannouncementsalsoalertcompetitorsandremovetheelementofsurprise.Advertisingcoststypicallyarehighduringthisstageinordertorapidlyincreasecustomerawarenessoftheproductandtotargettheearlyadopters.Duringtheintroductorystagethefirmislikelytoincuradditionalcostsassociatedwiththeinitialdistributionoftheproduct.Thesehighercostscoupledwithalowsalesvolumeusuallymaketheintroductionstageaperiodofnegativeprofits.5Duringtheintroductionstage,theprimarygoalistoestablishamarketandbuildprimarydemandfortheproductclass.Thefollowingaresomeofthemarketingmiximplicationsoftheintroductionstage:Product

-oneorfewproducts,relativelyundifferentiatedPrice-Generallyhigh,assumingaskimpricingstrategyforahighprofitmarginastheearlyadoptersbuytheproductandthefirmseekstorecoupdevelopmentcostsquickly.Insomecasesapenetrationpricingstrategyisusedandintroductorypricesaresetlowtogainmarketsharerapidly.Distribution-Distributionisselectiveandscatteredasthefirmcommencesimplementationofthedistributionplan.Promotion

-Promotionisaimedatbuildingbrandawareness.Samplesortrialincentivesmaybedirectedtowardearlyadopters.6GrowthStage

Thegrowthstageisaperiodofrapidrevenuegrowth.Salesincreaseasmorecustomersbecomeawareoftheproductanditsbenefitsandadditionalmarketsegmentsaretargeted.

Duringthegrowthstage,thegoalistogainconsumerpreferenceandincreasesales.Themarketingmixmaybemodifiedasfollows:Product

-Newproductfeaturesandpackagingoptions;improvementofproductqualityPrice-Maintainedatahighlevelifdemandishigh,orreducedtocaptureadditionalcustomers.Distribution-Distributionbecomesmoreintensive.Tradediscountsareminimalifresellersshowastronginterestintheproduct.Promotion-Increasedadvertisingtobuildbrandpreference.7MaturityStage

Thematuritystageisthemostprofitable.Whilesalescontinuetoincreaseintothisstage,theydosoataslowerpace.Duringthematuritystage,theprimarygoalistomaintainmarketshareandextendtheproductlifecycle.Marketingmixdecisionsmayinclude:

Product-Modificationsaremadeandfeaturesareaddedinordertodifferentiatetheproductfromcompetingproductsthatmayhavebeenintroduced.Price-Possiblepricereductionsinresponsetocompetitionwhileavoidingapricewar.Distribution-Newdistributionchannelsandincentivestoresellersinordertoavoidlosingshelfspace.Promotion-Emphasisondifferentiationandbuildingofbrandloyalty.Incentivestogetcompetitors'customerstoswitch.8DeclineStage

Eventuallysalesbegintodeclineasthemarketbecomessaturated,theproductbecomestechnologicallyobsolete,orcustomertasteschange.Iftheproducthasdevelopedbrandloyalty,theprofitabilitymaybemaintainedlonger.Unitcostsmayincreasewiththedecliningproductionvolumesandeventuallynomoreprofitcanbemade.Duringthedeclinephase,thefirmgenerallyhasthreeoptions:Product

-

Thenumberofproductsintheproductlinemaybereduced.Rejuvenatesurvivingproductstomakethemlooknewagain.Price-Pricesmaybeloweredtoliquidateinventoryofdiscontinuedproducts.Pricesmaybemaintainedforcontinuedproductsservinganichemarket.Distribution-Distributionbecomesmoreselective.Channelsthatnolongerareprofitablearephasedout.Promotion-Expendituresarelowerandaimedatreinforcingthebrandimageforcontinuedproducts.LimitationsoftheProductLifeCycleConceptTheterm"lifecycle"impliesawell-definedlifecycleasobservedinlivingorganisms,butproductsdonothavesuchapredictablelifeandthespecificlifecyclecurvesfollowedbydifferentproductsvarysubstantially.Consequently,thelifecycleconceptisnotwell-suitedfortheforecastingofproductsales.Furthermore,criticshavearguedthattheproductlifecyclemaybecomeself-fulfilling.Forexample,ifsalespeakandthendecline,managersmayconcludethattheproductisinthedeclinephaseandthereforecuttheadvertisingbudget,thusprecipitatingafurtherdecline.Nonetheless,theproductlifecycleconcepthelpsmarketingmanagerstoplanalternatemarketingstrategiestoaddressthechallengesthattheirproductsarelikelytoface.Italsoisusefulformonitoringsalesresultsovertimeandcomparingthemtothoseofproductshavingasimilarlifecycle.11ReviewofKeyTermsandConceptsIntroductionstage

Theproductlife-cyclestageinwhichthenewproductisfirstdistributedandmadeavailableforpurchase.（产品）导入期，介绍期.

growthstage

Theproductlife-cyclestageinwhichaproduct'ssalesstartclimbingquickly.增长期maturitystage

Thestageintheproductlifecycleinwhichsalesgrowthslowsorlevelsoff.成熟期declinestage

Theproductlife-cyclestageinwhichaproduct'ssalesdecline.衰退期12

productlifecycle(PLC)

Thecourseofaproduct'ssalesandprofitsoveritslifetime.Itinvolvesfivedistinctstages:productdevelopment,introduction,growth,maturity,anddecline.产品生命productdevelopment

Developingtheproductconceptintoaphysicalproductinordertoensurethattheproductideacanbeturnedintoaworkableproduct.产品开发

DiscussionandReviewQuestions:

1.WhatisProductLifeCyclebydefinition?Andhowmanystagesatypicalproductmaygothrough?2.Pickasoftdrink,car,fashion,foodproduct,orelectronicgadgetandtracetheproduct'slifecycle.Explainhowyouseparatedthestagesoftheproduct'sdevelopment.3.Whichstageoffersthegreatestprofitpotential?Provideexamplesifpossible.4.Whatistheprimarygoalduringtheintroductionstageintermsofmarketing?5.Whatkindofmarketingmixshouldmarketerpursueduringthegrowthstageofproductlifecycle?6.Duringthematuritystage,theprimarygoalistomaintainmarketshareandextendtheproductlifecycle.Pleasecomment.7.Whatarethepricingstrategiescanbeusedduringtheintroductionstage?Why?8.Whatarethelimitationsofproductlifecycleconcept?SelectedAnswers

toExercisesinUnit9I.Nofixedanswerstothesequestions;Studentsmaymakefreespeechaccordingtothetext.II.1.incubation;2.implementation;3.alert;4.penetration;5.promotions;6.maturity;7.pricing;8.category

III.

1.f;2.d;3e;4.b;5.c6.a;IV.1.T;