product life cycle and bcg matrix ppt

7/28/2019 Product Life Cycle and BCG Matrix Ppt

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Product life cycle

By: Brian Smith

Jon XuNick Gland

Maddie Mansi


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Students will know

What a product life cycle is

What the BCG Matrix is

The 4 stages of a product life cycle How the BCG matrix works

How the Product life cycle graph works

How the life cycle effects the BCG Matrix


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Product life cycle

Definition- Identifies the stages a product goes

through from the time it enters the market

until it is no longer sold

Products go through four stages in their life

cycle.

By studying the competition a business can

determine the type of marketing mix needed

in each stage of the product life cycle


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Product life cycle stages

Introduction: New product introduced to market.

Usually has no direct competition and competes

with older more established products

Growth: If a new product is introduced

successfully, then it will attract more customers

and sales will begin to grow. Competitors will seethat the product offers profit and try to enter the

market with their own brand


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Product life cycle continued

Maturity: Growth of sales begins to decline.Competitors may have come out with similarproducts. At this point, a company wants to

defend their market share. Decline: This is when product sales begins to

decline. Your product is probably outdated ornot innovative by now. Instead of losing moremoney, firms may withdrawal that product orreduce costs.


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The Lifecycle


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The BCG Matrix


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How to read a BCG Matrix graph

The Dog stands for a

low growth and a low

market share, because

of this it has a low profitwith high investment

Question mark means

High growth and low

market share, It has low

profits but needs high

investments.


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How to read a BCG Matrix graph

Stars are when yourbusiness has highgrowth and high marketshare.

The cow means thatthere is a low growthand a high marketshare, because of this

your investmentsshould be low with highprofits.


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Product lifecycle & BCG Matrix relation

Theyre not directly related but

they both describe lifecycles of

businesses or products.


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How they both apply to real life

Example of product life cycle: The Ipod 1: Firstintroduced in 2001, was a huge market success,

knock offs were soon made.

2: They made all the ipod variations with more

memory and capability

3. the Ipod classic was eventually beaten out by the

Ipod touch, and other touch screen items.

4: It was declined when the Iphone came out.


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How they both apply to real life

Example: Apple

1: The first year apple was a business they were

a dog.

2: They quickly over took the personal electronic

Industry, beating out the blackberry as #1 (star)


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Conclusion

Now you should know

What a product life cycle is

What the BCG Matrix is The 4 stages of a product life cycle

How the BCG matrix works

How the Product life cycle graph works How the life cycle effects the BCG Matrix


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Activity

Find a product that has

gone through theproduct life cycle and

describe the stages itwent through


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Activity

Name a company

for each of the 4

quadrants of theBCG matrix


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up next

POP

QUIZ!!!

product life cycle and bcg matrix ppt

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