Professional Documents
Culture Documents
• New-to-the-World Products
– Brand new innovations (the first of anything)
• New Product Category Entries
– Nike adding sports equipment to there existing
apparel and shoe market
• Product Line Extensions
– Adding an additional flavor of Gatorade
– Newest Twilight Movie
• Product Improvements
– NEW and IMPROVED!!
ACTIVITY!!
Introduction
Decline Growth
Maturity
Stages of Product Life Cycle
• Stage 1: Introduction (new to the
market)
Companies
• promote consumer awareness
• get customers to try the product
• educate consumers about the product
• Stage 2: Growth
Competitors are entering the marketplace
The product must be improved to stay
competitive
Sold in more locations
Stages of Product Life Cycle
• Stage 4: Decline
Sales and profit continue to drop
There is no longer a demand for the
product
Product may be dropped by the
company
Good Example: cassette tapes
Think about it!
Market Research
The process of systematically
collecting, recording, analyzing,
and presenting data related to
marketing goods and services
Why is Market Research
important?
Global Market – other countries are different from the
US and companies need to learn and understand
their needs and wants before they enter that market
Competition – companies need an “edge” to compete
in the marketplace, so the need to research what
their competitors are doing
Changing Market – customer needs change daily, it is
important to understand them before a company
enters the marketplace
5 steps in Market Research
Ways to collect
Experiment – try it out
Observation – watch it happen
Survey – ask about it
Report and Analyze
In order for data to be useful it must
be reported and analyzed