BUSI 2202U Lecture Notes - Lecture 3: Creative Destruction
Document Summary
Describes the life stages a new product goes through in the marketplace. The stage you are on may dictate your marketing strategy. As marketing managers, you are not entirely victims to the product lifecycle: you ca(cid:374) (cid:373)ake decisio(cid:374)s to alter it; that"s where you (cid:373)ake a(cid:374)alytical decisio(cid:374)s ti(cid:373)e the market and contribute value. Introduction stage: product is first introduced, pro: little to no competition, con: little to no awareness, distribution channels may not be clearly defined, pricing strategies. Marketing skimming: charge a premium to early adopters who may be willing to pay in order to recover startup costs. Creative destruction - progress/innovation can build new industries/categories. Deletion - completely dropping a product in the decline stage: most drastic decision; may be logical if operations are resulting in company losses, harvesting - divest in supporting activities. How they vary by product level (product class/form) The rate at which consumers adopt the product. Product form: specific product within that class.
