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ed test markets ? Stage 8: Commercialization New Product Development Strategy 10 ? The Typical Product Life Cycle (PLC) Has Five Stages ? Product Development, Introduction, Growth, Maturity, Decline ? Not all products follow this cycle: ? Fads ? Styles ? Fashions Product LifeCycle Strategies 11 ? The product life cycle concept can be applied to a: ? Product class (soft drinks) ? Product form (diet colas) ? Brand (Diet Dr. Pepper) ? Using the PLC to forecast brand performance or to develop marketing strategies is problematic Product LifeCycle Strategies 12 Product LifeCycle Strategies ? Product development ? Introduction ? Growth ? Maturity ? Decline ? Begins when the pany develops a newproduct idea ? Sales are zero ? Investment costs are high ? Profits are negative PLC Stages 13 Product LifeCycle Strategies ? Product development ? Introduction ? Growth ? Maturity ? Decline ? Low sales ? High cost per customer acquired ? Negative profits ? Innovators are targeted ? Little petition PLC Stages 14 ? Product – Offer a basic product ? Price – Use costplus basis to set ? Distribution – Build selective distribution ? Advertising – Build awareness among early adopters and dealers/resellers ? Sales Promotion – Heavy expenditures to create trial Marketing Strategies: Introduction Stage 15 Product LifeCycle Strategies ? Product developme