Lecture Notes: Product Life Cycle and Marketing Strategies

Product Life Cycle Overview

• Definition: Products, like living beings, have life cycles which can be short or long-lived.
• Importance: Understanding where a product is in its life cycle affects marketing strategies.

Stages of Product Life Cycle

1. Introduction

   • Goal: Achieve brand awareness.
   • Strategies:
     • Increase awareness through samples and influencer marketing.
     • Educate consumers about the product.
     • Utilize social proof by getting expert or celebrity endorsements.

2. Growth

   • Continuation of introduction strategies.

3. Maturity

   • Goal: Remind customers of the product's existence.
   • Example: Coca-Cola's advertising focuses on brand presence rather than product features.

4. Decline

   • Strategies: Be aggressive in marketing or let the product phase out.
   • Repositioning: Changing the brand to appear as something else (upcoming topic).

Key Vocabulary in Marketing

1. High Learning Product

• Definition: Products requiring significant consumer education.
• Example: Smartphones when first introduced.

2. Low Learning Product

• Definition: Products that consumers easily understand.
• Examples: Food and clothing.
• Transition: Smartphones now fall into this category due to consumer familiarity.

3. Fashion

• Characteristics: Cyclical nature; styles come and go.
• Examples: Jean jackets, bell bottoms.

4. Fads

• Definition: Products that gain rapid popularity and fade quickly.
• Examples: Fidget spinners, "Gangnam Style"
• Marketing Caution: Avoid over-investing in fads to prevent excess inventory.
• Fad vs. Trend: Fad lasts weeks/months; trend can last years.

Case Study: LG's Smartphone Misstep

• Scenario: LG misjudged smartphones as a fad rather than a trend.
• Consequence: Discontinued smartphone production in 2021 after losing billions.

Conclusion

• Always evaluate the product's stage in the life cycle.
• Understand whether the product is a high learning, low learning, fashion, or fad.
• Correctly identifying trends vs. fads is crucial for successful marketing.

Remember: Continually assess your product's position in the market and adapt strategies accordingly to maintain a successful marketing trajectory.