Product Life Cycle
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Product Life Cycle - Introduction, Growth, Maturity, Decline. Visit www.buddingmarkets.com for more information.

Product Life Cycle - Introduction, Growth, Maturity, Decline. Visit www.buddingmarkets.com for more information.

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Product Life Cycle Product Life Cycle Presentation Transcript

  • PRODUCT LIFE CYCLE Prof. Sameer Mathur, Ph.D.
  • Agenda Product Life Cycle Product Development Marketing Strategies iPod Timeline
  • Sameer Mathur BuddingMarkets.com Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009 Marketing Professor 2013 – Indian Institute of Management, Lucknow
  • A new product progresses through a sequence of stages from introduction to growth, maturity, and decline... …impacting the marketing strategy and the marketing mix
  • The Product Life Cycle
  • Summary: Stages in NPD New-product strategy development Idea Generation Screening and Evaluation Business Analysis Development Market Testing Commercial- ization
  • Profits are negative Sales are Zero Investment Costs are high Product Development
  • Sales Costs Profits Marketing Objectives Product Price Low sales High cost per customer Negative Create product awareness and trial Offer a basic product Use cost-plus basis Distribution Build selective distribution Advertising Build awareness among innovators, early adopters Marketing Strategies: Introduction Stage
  • Toyota Hybrid: Introductory Stage Product
  • Rapidly rising sales Average cost per customer Rising profits Maximize market share Offer product extensions, service, warranty Penetration Pricing Build intensive distribution Build awareness in the mass market Sales Costs Profits Marketing Objectives Product Price Distribution Advertising Marketing Strategies: Growth Stage
  • A Product at the Growth Stage
  • Peak sales Low cost per customer High profits Maximize profit while defending market share Diversify brand and models Price to match or best competitors Build more intensive distribution Stress brand differences and benefits Sales Costs Profits Marketing Objectives Product Price Distribution Advertising Marketing Strategies: Maturity Stage
  • A Product at the Mature Stage
  • Declining sales Low cost per customer Declining profits Reduce expenditure and milk the brand Phase out weak items Cut price Go selective: phase out unprofitable outlets Reduce to level needed to retain hard-core loyal customers Sales Costs Profits Marketing Objectives Product Price Distribution Advertising Marketing Strategies: Decline Stage
  • Alternate Product Life Cycles
  • 28% 27% 17% 10% 7% 6% 5% iPod Portables Desktops Other Music Related Products and Services Software, Service, and Other Net Sales iPhone and Related Products and Services http://www.marketlineinfo.com/library/DisplayContent.aspx?R=5B0A0C20-9BB6-4284-A575-AC0F2261F45C&N=4 Apple Inc. – 2008 Revenues
  • iPod Nano (Sept 2005) iPod Touch (Sept 2007) iPod Shuffle (Jan 2005) iPod Classic (Oct 2001) http://www.apple.com/ca/ipod/compare-ipod-models/ Product Life Cycle of iPods
  • http://en.wikipedia.org/wiki/IPod_Classic http://www.apple.com/ipodclassic/ Timeline of iPod Classic
  • http://en.wikipedia.org/wiki/IPod_Classic Timeline of iPod Classic
  • • Product development • Introduction • Growth • Maturity • Decline What Stage of the PLC is the iPod Classic?
  • http://en.wikipedia.org/wiki/IPod_Touch http://www.apple.com/ipodtouch/ Timeline of iPod Touch
  • • Product: “A great pocket computer”. Music, movies, games, apps at fingertips. • Price: 8GB : $249; 32GB: $319; 64GB: $429 • Promotion: Advertisement on TV, billboards, magazines. Focus on numerous applications. • Place: Online, Apple Store, Future Shop, Best Buy, Costco. http://www.apple.com/ca/ipod/compare-ipod-model Marketing Mix – iPod Touch
  • Which Stage of the PLC is the iPod Touch? • Product development • Introduction • Growth • Maturity • Decline
  • Summary Product Life Cycle Product Development Marketing Strategies iPod Timeline
  • Over 600,000 views from more than 100 countries http://www.BuddingMarkets.com/ Sameer Mathur BuddingMarkets .com http://www.facebook.com/BuddingMarkets/
  • Read this book “This book is the bible of Marketing” Prof. Sameer Mathur