We can see how the product life cycle works by
looking at the introduction of instant coffee. When it was introduced, most
people did not like it as well as "regular" coffee, and it took several years to
gain general acceptance (introduction stage). At one point, though, instant
coffee grew rapidly in popularity, and many brands were introduced (stage of
rapid growth). After a while, people became attached to one brand and sales
leveled off (stage of maturity). Sales went into a slight decline when
freeze-dried coffees were introduced (stage of decline). The
importance of the product life cycle to marketers is this: Different stages in
the product life cycle call for different strategies. The goal is to extend
product life so that sales and profits do not decline. One strategy is called
market modification. It means that marketing managers look for new users and
market sections. Did you know, for example, that the backpacks that so many
students carry today were originally designed for the military
Market modification also means searching for increased usage among present
customers or going for a different market, such as senior citizens. A marketer
may re-position the product to appeal to new market sections.
Another product extension strategy is called product modification. It involves
changing product quality, features, or style to attract new users or more usage
from present users. American auto manufacturers are using quality improvement as
one way to recapture world markets. Note, also, how auto manufacturers once
changed styles dramatically from year to year to keep demand from
falling. The first paragraph tells us that a new product is ______.
A. not easily accepted by the public
B. often inferior to old ones at first
C. often more expensive than old ones
D. usually introduced to satisfy different tastes