SlideShare a Scribd company logo
1 of 14
PRODUCT LIFE CYCLE
“The product life cycle is an attempt to recognize distinct stage
in the sales history of the product.” -Philip Kotler
“From its birth to death, a product exists in different stages
and in different competitive environments. Its adjustment to
these environments determines to great degree just
successful its life will be.”
– Willian J. Stanton
 Like a human being, Each product has to cross various stages in
its life. It involves five distinct stages: Product development,
Introduction, Growth, Maturity & Decline.
 Most product life cycle curves are portrayed as bell-shaped.
 After the decline stage, the product finally come to an end.
WHY A PRODUCT LIFE CYCLE?
A company should change its positioning and differentiation
strategy as the product, market and competitors change over
their strategies with the respective product life cycle(PLC).
When we say that a product has a life cycle we consider four
important things:
i. Products have a limited life.
ii. Products sales pass through distinct stages, each posing
different challenges, opportunities and problems to the
marketer.
iii. Profits rise and fall varies at different stages of the product life
cycle.
iv. Products require different marketing, financial, buying,
manufacturing, and human resource strategies in each life–
cycle stages.
USEFULNESS OF PRODUCT LIFE CYCLE
 As a Planning Tool
 As a forecasting tool
 As a control tool
 To decide for developing a new product
INTRODUCTION STAGE OF THE PLC
Sales
Costs
Cash Flow/Profits
Marketing Objectives
Product
Price
Very Low sales
High cost per customer
Negative or negligible
Create product awareness
and trial
Offer a basic product to meet
customer needs
Use cost-plus, High
Distribution Build selective distribution
Advertising Build product awareness among
early adopters and dealers
Market Expenditure High
Working Capital Moderate
MARKETING STRATEGIES FOR INTRODUCTION STAGE
 Use of Sales promotion schemes
 Focus on Early Adopters
 High pricing strategy to introduce new technology
 Penetration pricing strategy in case if the still
competition prevailing
 Reduce the time span
Sales
Costs
Profits
Marketing Objectives
Product
Price
Rapidly rising sales
Average cost per customer
High profits
Maximize market share
Offer product extensions,
service, warranty
Price to penetrate market, Lower
price
Distribution Build intensive distribution
Advertising Build awareness and interest
in the mass market
GROWTH STAGE OF THE PLC
Cash Flow Improving
Working capital
Improving
MARKETING STRATEGIES FOR GROWTH STAGE
 Price Reduction
 Improve product quality and styling; add new
product features
 New uses of the product
 More uses of the product
 Enter into new market segments
 Focus on “Early Majority”
 Increase promotional expenditures
 Reduce the prices to attract buyers
 Enter into new distribution channels
Sales
Costs
Profits
Marketing Objectives
Product
Price
Reasonable Sales
Moderate cost per customer
Stabilized or low profits
Differentiated products
Price to match or best
competitors
Distribution
Build more intensive
distribution
Market Expenditure Falling
MATURITY STAGE OF PLC
Maximized profits while
defending market share
Cash Flow Consistently high
Market Emphasis Brand Loyalty
MARKETING STRATEGIES FOR MATURITY STAGE
 Introduction of new products
 Intensive use of Advertisement and Sales
promotion Techniques
 Re-positioning of Brand
 Improve the quality of the product
 “Differential Advantage” Strategy
 Focus on “Late Majority”
 Product alteration and modification
 Creating New Buyers
 Increase the usage of product among the current
buyers
Sales
Costs
Profits
Marketing Objectives
Product
Price
Sales down
Low cost per customer
Declining profits or negative
Reduce expenditure and milk
the brand
Phase out weak items
Cut price
Distribution
Go selective: phase out
unprofitable outlets
Market Emphasis Selective Distribution
DECLINE STAGE OF PLC
Cash Flow Low
LowMarket Expenditure
Competitor Reduced Withdrawn
 Product Simplification Decision
 Selective Distribution
 Intensive Care Unit Treatment
 Abandon the product
 Pruning out unprofitable sizes and models to make
efficient product assortment
 Strategic Alliance
 Improve the functionality of the product
 Make production and marketing functioning efficient
MARKETING STRATEGIES FOR DECLINE STAGE
LIMITATIONS OF PRODUCT LIFE CYCLE
 Product don’t have predictable life and the specific life
cycle curves
 The life cycle of one product varies from the life cycle
of another product
 For all practical reasons PLC doesn’t exist
 PLC may be used as a descriptor not as a predictor
 It is very difficult to identify the factors which will affect
product’s movement in different stages
 It is very difficult to predict when the product moves to
next stage of PLC
 It is also very hard to identify at which stage of PLC the
product is in.

More Related Content

What's hot

8966 product life cycle & marketing strategies
8966 product life cycle & marketing strategies8966 product life cycle & marketing strategies
8966 product life cycle & marketing strategiesPranav Kumar Ojha
 
Summary of Product Life Cycle
Summary of Product Life CycleSummary of Product Life Cycle
Summary of Product Life CycleChe Royales
 
New product development and product life-cycle strategies
New product development and product life-cycle strategiesNew product development and product life-cycle strategies
New product development and product life-cycle strategiesBabasab Patil
 
What marketing strategies are appropriate at each stage of the product life c...
What marketing strategies are appropriate at each stage of the product life c...What marketing strategies are appropriate at each stage of the product life c...
What marketing strategies are appropriate at each stage of the product life c...Sameer Mathur
 
New Product Development & Product Life Cycle Strategies - Marketing
New Product Development & Product Life Cycle Strategies - MarketingNew Product Development & Product Life Cycle Strategies - Marketing
New Product Development & Product Life Cycle Strategies - MarketingFaHaD .H. NooR
 
Marketing strategies based on product life cycle
Marketing strategies based on product life cycleMarketing strategies based on product life cycle
Marketing strategies based on product life cycleSai Datri Arige
 
Product Life Cycle (Stages and Extension Strategies)
Product Life Cycle (Stages and Extension Strategies)Product Life Cycle (Stages and Extension Strategies)
Product Life Cycle (Stages and Extension Strategies)Project Student
 
Product life cycle1_ppt
Product life cycle1_pptProduct life cycle1_ppt
Product life cycle1_pptAamera Khan
 
4.new product development
4.new product development4.new product development
4.new product developmentRavee Ind
 
Product Life Cycle - Maturity Stage
Product Life Cycle - Maturity StageProduct Life Cycle - Maturity Stage
Product Life Cycle - Maturity StageZandro Steve
 

What's hot (20)

Product life cycle
Product life cycleProduct life cycle
Product life cycle
 
product life cycle
product life cycleproduct life cycle
product life cycle
 
8966 product life cycle & marketing strategies
8966 product life cycle & marketing strategies8966 product life cycle & marketing strategies
8966 product life cycle & marketing strategies
 
Plc
PlcPlc
Plc
 
Summary of Product Life Cycle
Summary of Product Life CycleSummary of Product Life Cycle
Summary of Product Life Cycle
 
Marketing strategies
Marketing    strategiesMarketing    strategies
Marketing strategies
 
New product development and product life-cycle strategies
New product development and product life-cycle strategiesNew product development and product life-cycle strategies
New product development and product life-cycle strategies
 
Product life cycle
Product life cycleProduct life cycle
Product life cycle
 
What marketing strategies are appropriate at each stage of the product life c...
What marketing strategies are appropriate at each stage of the product life c...What marketing strategies are appropriate at each stage of the product life c...
What marketing strategies are appropriate at each stage of the product life c...
 
New Product Development & Product Life Cycle Strategies - Marketing
New Product Development & Product Life Cycle Strategies - MarketingNew Product Development & Product Life Cycle Strategies - Marketing
New Product Development & Product Life Cycle Strategies - Marketing
 
Marketing strategies based on product life cycle
Marketing strategies based on product life cycleMarketing strategies based on product life cycle
Marketing strategies based on product life cycle
 
Product Life Cycle (Stages and Extension Strategies)
Product Life Cycle (Stages and Extension Strategies)Product Life Cycle (Stages and Extension Strategies)
Product Life Cycle (Stages and Extension Strategies)
 
Product life cycle1_ppt
Product life cycle1_pptProduct life cycle1_ppt
Product life cycle1_ppt
 
Product Life Cycle Stages Explained
Product Life Cycle Stages ExplainedProduct Life Cycle Stages Explained
Product Life Cycle Stages Explained
 
1.pd
1.pd1.pd
1.pd
 
4.new product development
4.new product development4.new product development
4.new product development
 
Ch11 Product Life Cycle
Ch11 Product Life CycleCh11 Product Life Cycle
Ch11 Product Life Cycle
 
Npd & plc
Npd & plcNpd & plc
Npd & plc
 
Product Life Cycle
Product Life CycleProduct Life Cycle
Product Life Cycle
 
Product Life Cycle - Maturity Stage
Product Life Cycle - Maturity StageProduct Life Cycle - Maturity Stage
Product Life Cycle - Maturity Stage
 

Similar to Product life cycle

Product Life Cycle
Product Life CycleProduct Life Cycle
Product Life CycleMehmet KUZU
 
Product life cycle ppt
Product life cycle pptProduct life cycle ppt
Product life cycle pptDivya Sharma
 
Product Life Cycle
Product Life CycleProduct Life Cycle
Product Life Cyclegary6h
 
Pdlc
PdlcPdlc
Pdlctes31
 
Product life cycle
Product life cycle Product life cycle
Product life cycle Sundar B N
 
new product development,plc,operations in npd
new product development,plc,operations in npdnew product development,plc,operations in npd
new product development,plc,operations in npdnandhinibavana
 
Product life cycle & marketing strategies
Product life cycle & marketing strategiesProduct life cycle & marketing strategies
Product life cycle & marketing strategiesAmar Ingale
 
Pro lifecycle (1)
Pro lifecycle (1)Pro lifecycle (1)
Pro lifecycle (1)chanakya999
 
Product Life Cycle
Product Life CycleProduct Life Cycle
Product Life Cycledcsastudent
 
Marketing Management - Product Life Cycle
Marketing Management - Product Life CycleMarketing Management - Product Life Cycle
Marketing Management - Product Life CycleSarosh Gul
 
Product Life Cycle
Product Life CycleProduct Life Cycle
Product Life CycleDr Pooja
 
productlifecyclemarketingstrategies-120307070839-phpapp01.pptx
productlifecyclemarketingstrategies-120307070839-phpapp01.pptxproductlifecyclemarketingstrategies-120307070839-phpapp01.pptx
productlifecyclemarketingstrategies-120307070839-phpapp01.pptxPrashantMishra919139
 

Similar to Product life cycle (20)

Product Life Cycle
Product Life CycleProduct Life Cycle
Product Life Cycle
 
Product life cycle ppt
Product life cycle pptProduct life cycle ppt
Product life cycle ppt
 
Product Life Cycle
Product Life CycleProduct Life Cycle
Product Life Cycle
 
Pdlc
PdlcPdlc
Pdlc
 
Product life cycle
Product life cycleProduct life cycle
Product life cycle
 
Product life cycle
Product life cycleProduct life cycle
Product life cycle
 
Product life cycle
Product life cycle Product life cycle
Product life cycle
 
new product development,plc,operations in npd
new product development,plc,operations in npdnew product development,plc,operations in npd
new product development,plc,operations in npd
 
Product life cycle & marketing strategies
Product life cycle & marketing strategiesProduct life cycle & marketing strategies
Product life cycle & marketing strategies
 
Product life cycle
Product life cycleProduct life cycle
Product life cycle
 
4.2.1PLC.pptx
4.2.1PLC.pptx4.2.1PLC.pptx
4.2.1PLC.pptx
 
PLC.pptx
PLC.pptxPLC.pptx
PLC.pptx
 
PLC.ppt
PLC.pptPLC.ppt
PLC.ppt
 
Product Strategies
Product StrategiesProduct Strategies
Product Strategies
 
Pro lifecycle (1)
Pro lifecycle (1)Pro lifecycle (1)
Pro lifecycle (1)
 
Product Life Cycle
Product Life CycleProduct Life Cycle
Product Life Cycle
 
Product Life Cycle.pptx
Product Life Cycle.pptxProduct Life Cycle.pptx
Product Life Cycle.pptx
 
Marketing Management - Product Life Cycle
Marketing Management - Product Life CycleMarketing Management - Product Life Cycle
Marketing Management - Product Life Cycle
 
Product Life Cycle
Product Life CycleProduct Life Cycle
Product Life Cycle
 
productlifecyclemarketingstrategies-120307070839-phpapp01.pptx
productlifecyclemarketingstrategies-120307070839-phpapp01.pptxproductlifecyclemarketingstrategies-120307070839-phpapp01.pptx
productlifecyclemarketingstrategies-120307070839-phpapp01.pptx
 

More from Shreya Bhargava

Service Failure and Recovery: Marketing Speciaization
Service Failure and Recovery: Marketing SpeciaizationService Failure and Recovery: Marketing Speciaization
Service Failure and Recovery: Marketing SpeciaizationShreya Bhargava
 
7 p's of service marketing
7 p's of service marketing7 p's of service marketing
7 p's of service marketingShreya Bhargava
 
Adoption process and adopter categories
Adoption process and adopter categoriesAdoption process and adopter categories
Adoption process and adopter categoriesShreya Bhargava
 
Consumer behaviour :Basic Presentation
Consumer behaviour :Basic PresentationConsumer behaviour :Basic Presentation
Consumer behaviour :Basic PresentationShreya Bhargava
 
Presentation on Perception - Organisation Behavior
Presentation on Perception - Organisation BehaviorPresentation on Perception - Organisation Behavior
Presentation on Perception - Organisation BehaviorShreya Bhargava
 
Customer buying behavior in services
Customer buying behavior in servicesCustomer buying behavior in services
Customer buying behavior in servicesShreya Bhargava
 
Customer expectations in services - mMARKETING OF SERVICES
Customer expectations in services - mMARKETING OF SERVICESCustomer expectations in services - mMARKETING OF SERVICES
Customer expectations in services - mMARKETING OF SERVICESShreya Bhargava
 
Market Segmentation, Targeting and Positioning
Market Segmentation, Targeting and PositioningMarket Segmentation, Targeting and Positioning
Market Segmentation, Targeting and PositioningShreya Bhargava
 
Organizational Behavior: Learning and its theories
Organizational Behavior: Learning and its theoriesOrganizational Behavior: Learning and its theories
Organizational Behavior: Learning and its theoriesShreya Bhargava
 

More from Shreya Bhargava (11)

Service Failure and Recovery: Marketing Speciaization
Service Failure and Recovery: Marketing SpeciaizationService Failure and Recovery: Marketing Speciaization
Service Failure and Recovery: Marketing Speciaization
 
7 p's of service marketing
7 p's of service marketing7 p's of service marketing
7 p's of service marketing
 
Adoption process and adopter categories
Adoption process and adopter categoriesAdoption process and adopter categories
Adoption process and adopter categories
 
Consumer behaviour :Basic Presentation
Consumer behaviour :Basic PresentationConsumer behaviour :Basic Presentation
Consumer behaviour :Basic Presentation
 
Presentation on Perception - Organisation Behavior
Presentation on Perception - Organisation BehaviorPresentation on Perception - Organisation Behavior
Presentation on Perception - Organisation Behavior
 
Customer buying behavior in services
Customer buying behavior in servicesCustomer buying behavior in services
Customer buying behavior in services
 
Customer expectations in services - mMARKETING OF SERVICES
Customer expectations in services - mMARKETING OF SERVICESCustomer expectations in services - mMARKETING OF SERVICES
Customer expectations in services - mMARKETING OF SERVICES
 
Packaging and labelling
Packaging and labellingPackaging and labelling
Packaging and labelling
 
Market Segmentation, Targeting and Positioning
Market Segmentation, Targeting and PositioningMarket Segmentation, Targeting and Positioning
Market Segmentation, Targeting and Positioning
 
Organizational Behavior: Learning and its theories
Organizational Behavior: Learning and its theoriesOrganizational Behavior: Learning and its theories
Organizational Behavior: Learning and its theories
 
Stress management
Stress managementStress management
Stress management
 

Recently uploaded

Exploring The World Of Adult Ad Networks.pdf
Exploring The World Of Adult Ad Networks.pdfExploring The World Of Adult Ad Networks.pdf
Exploring The World Of Adult Ad Networks.pdfadult marketing
 
Most Impressive Construction Leaders in Tech, Making Waves in the Industry, 2...
Most Impressive Construction Leaders in Tech, Making Waves in the Industry, 2...Most Impressive Construction Leaders in Tech, Making Waves in the Industry, 2...
Most Impressive Construction Leaders in Tech, Making Waves in the Industry, 2...CIO Business World
 
Common Culture: Paul Willis Symbolic Creativity
Common Culture: Paul Willis Symbolic CreativityCommon Culture: Paul Willis Symbolic Creativity
Common Culture: Paul Willis Symbolic CreativityMonishka Adhikari
 
top marketing posters - Fresh Spar Technologies - Manojkumar C
top marketing posters - Fresh Spar Technologies - Manojkumar Ctop marketing posters - Fresh Spar Technologies - Manojkumar C
top marketing posters - Fresh Spar Technologies - Manojkumar CManojkumar C
 
DIGITAL MARKETING STRATEGY_INFOGRAPHIC IMAGE.pdf
DIGITAL MARKETING STRATEGY_INFOGRAPHIC IMAGE.pdfDIGITAL MARKETING STRATEGY_INFOGRAPHIC IMAGE.pdf
DIGITAL MARKETING STRATEGY_INFOGRAPHIC IMAGE.pdfmayanksharma0441
 
Fiverr's Product Marketing Interview Assignment
Fiverr's Product Marketing Interview AssignmentFiverr's Product Marketing Interview Assignment
Fiverr's Product Marketing Interview AssignmentFarrel Brest
 
Best digital marketing e-book form bignners
Best digital marketing e-book form bignnersBest digital marketing e-book form bignners
Best digital marketing e-book form bignnersmuntasibkhan58
 
Digital Marketing Courses In Pune- school Of Internet Marketing
Digital Marketing Courses In Pune- school Of Internet MarketingDigital Marketing Courses In Pune- school Of Internet Marketing
Digital Marketing Courses In Pune- school Of Internet MarketingShauryaBadaya
 
What I learned from auditing over 1,000,000 websites - SERP Conf 2024 Patrick...
What I learned from auditing over 1,000,000 websites - SERP Conf 2024 Patrick...What I learned from auditing over 1,000,000 websites - SERP Conf 2024 Patrick...
What I learned from auditing over 1,000,000 websites - SERP Conf 2024 Patrick...Ahrefs
 
Talent Management for mba 3rd sem useful
Talent Management for mba 3rd sem usefulTalent Management for mba 3rd sem useful
Talent Management for mba 3rd sem usefulAtifaArbar
 
A Comprehensive Guide to Technical SEO | Banyanbrain
A Comprehensive Guide to Technical SEO | BanyanbrainA Comprehensive Guide to Technical SEO | Banyanbrain
A Comprehensive Guide to Technical SEO | BanyanbrainBanyanbrain
 
Michael Kors marketing assignment swot analysis
Michael Kors marketing assignment swot analysisMichael Kors marketing assignment swot analysis
Michael Kors marketing assignment swot analysisjunaid794917
 
Digital Marketing Spotlight: Lifecycle Advertising Strategies.pdf
Digital Marketing Spotlight: Lifecycle Advertising Strategies.pdfDigital Marketing Spotlight: Lifecycle Advertising Strategies.pdf
Digital Marketing Spotlight: Lifecycle Advertising Strategies.pdfDemandbase
 
Unlocking Passive Income: The Power of Affiliate Marketing
Unlocking Passive Income: The Power of Affiliate MarketingUnlocking Passive Income: The Power of Affiliate Marketing
Unlocking Passive Income: The Power of Affiliate MarketingDaniel
 
Prezentare Brandfluence 2023 - Social Media Trends
Prezentare Brandfluence 2023 - Social Media TrendsPrezentare Brandfluence 2023 - Social Media Trends
Prezentare Brandfluence 2023 - Social Media TrendsCristian Manafu
 
McDonald's: A Journey Through Time (PPT)
McDonald's: A Journey Through Time (PPT)McDonald's: A Journey Through Time (PPT)
McDonald's: A Journey Through Time (PPT)DEVARAJV16
 
Introduction to marketing Management Notes
Introduction to marketing Management NotesIntroduction to marketing Management Notes
Introduction to marketing Management NotesKiranTiwari42
 
(Generative) AI & Marketing: - Out of the Hype - Empowering the Marketing M...
(Generative) AI & Marketing: - Out of the Hype - Empowering the Marketing M...(Generative) AI & Marketing: - Out of the Hype - Empowering the Marketing M...
(Generative) AI & Marketing: - Out of the Hype - Empowering the Marketing M...Hugues Rey
 
2024's Top PPC Tactics: Triple Your Google Ads Local Leads
2024's Top PPC Tactics: Triple Your Google Ads Local Leads2024's Top PPC Tactics: Triple Your Google Ads Local Leads
2024's Top PPC Tactics: Triple Your Google Ads Local LeadsSearch Engine Journal
 
When to use Machine Learning Models in SEO and Which ones to use - Lazarina S...
When to use Machine Learning Models in SEO and Which ones to use - Lazarina S...When to use Machine Learning Models in SEO and Which ones to use - Lazarina S...
When to use Machine Learning Models in SEO and Which ones to use - Lazarina S...LazarinaStoyanova
 

Recently uploaded (20)

Exploring The World Of Adult Ad Networks.pdf
Exploring The World Of Adult Ad Networks.pdfExploring The World Of Adult Ad Networks.pdf
Exploring The World Of Adult Ad Networks.pdf
 
Most Impressive Construction Leaders in Tech, Making Waves in the Industry, 2...
Most Impressive Construction Leaders in Tech, Making Waves in the Industry, 2...Most Impressive Construction Leaders in Tech, Making Waves in the Industry, 2...
Most Impressive Construction Leaders in Tech, Making Waves in the Industry, 2...
 
Common Culture: Paul Willis Symbolic Creativity
Common Culture: Paul Willis Symbolic CreativityCommon Culture: Paul Willis Symbolic Creativity
Common Culture: Paul Willis Symbolic Creativity
 
top marketing posters - Fresh Spar Technologies - Manojkumar C
top marketing posters - Fresh Spar Technologies - Manojkumar Ctop marketing posters - Fresh Spar Technologies - Manojkumar C
top marketing posters - Fresh Spar Technologies - Manojkumar C
 
DIGITAL MARKETING STRATEGY_INFOGRAPHIC IMAGE.pdf
DIGITAL MARKETING STRATEGY_INFOGRAPHIC IMAGE.pdfDIGITAL MARKETING STRATEGY_INFOGRAPHIC IMAGE.pdf
DIGITAL MARKETING STRATEGY_INFOGRAPHIC IMAGE.pdf
 
Fiverr's Product Marketing Interview Assignment
Fiverr's Product Marketing Interview AssignmentFiverr's Product Marketing Interview Assignment
Fiverr's Product Marketing Interview Assignment
 
Best digital marketing e-book form bignners
Best digital marketing e-book form bignnersBest digital marketing e-book form bignners
Best digital marketing e-book form bignners
 
Digital Marketing Courses In Pune- school Of Internet Marketing
Digital Marketing Courses In Pune- school Of Internet MarketingDigital Marketing Courses In Pune- school Of Internet Marketing
Digital Marketing Courses In Pune- school Of Internet Marketing
 
What I learned from auditing over 1,000,000 websites - SERP Conf 2024 Patrick...
What I learned from auditing over 1,000,000 websites - SERP Conf 2024 Patrick...What I learned from auditing over 1,000,000 websites - SERP Conf 2024 Patrick...
What I learned from auditing over 1,000,000 websites - SERP Conf 2024 Patrick...
 
Talent Management for mba 3rd sem useful
Talent Management for mba 3rd sem usefulTalent Management for mba 3rd sem useful
Talent Management for mba 3rd sem useful
 
A Comprehensive Guide to Technical SEO | Banyanbrain
A Comprehensive Guide to Technical SEO | BanyanbrainA Comprehensive Guide to Technical SEO | Banyanbrain
A Comprehensive Guide to Technical SEO | Banyanbrain
 
Michael Kors marketing assignment swot analysis
Michael Kors marketing assignment swot analysisMichael Kors marketing assignment swot analysis
Michael Kors marketing assignment swot analysis
 
Digital Marketing Spotlight: Lifecycle Advertising Strategies.pdf
Digital Marketing Spotlight: Lifecycle Advertising Strategies.pdfDigital Marketing Spotlight: Lifecycle Advertising Strategies.pdf
Digital Marketing Spotlight: Lifecycle Advertising Strategies.pdf
 
Unlocking Passive Income: The Power of Affiliate Marketing
Unlocking Passive Income: The Power of Affiliate MarketingUnlocking Passive Income: The Power of Affiliate Marketing
Unlocking Passive Income: The Power of Affiliate Marketing
 
Prezentare Brandfluence 2023 - Social Media Trends
Prezentare Brandfluence 2023 - Social Media TrendsPrezentare Brandfluence 2023 - Social Media Trends
Prezentare Brandfluence 2023 - Social Media Trends
 
McDonald's: A Journey Through Time (PPT)
McDonald's: A Journey Through Time (PPT)McDonald's: A Journey Through Time (PPT)
McDonald's: A Journey Through Time (PPT)
 
Introduction to marketing Management Notes
Introduction to marketing Management NotesIntroduction to marketing Management Notes
Introduction to marketing Management Notes
 
(Generative) AI & Marketing: - Out of the Hype - Empowering the Marketing M...
(Generative) AI & Marketing: - Out of the Hype - Empowering the Marketing M...(Generative) AI & Marketing: - Out of the Hype - Empowering the Marketing M...
(Generative) AI & Marketing: - Out of the Hype - Empowering the Marketing M...
 
2024's Top PPC Tactics: Triple Your Google Ads Local Leads
2024's Top PPC Tactics: Triple Your Google Ads Local Leads2024's Top PPC Tactics: Triple Your Google Ads Local Leads
2024's Top PPC Tactics: Triple Your Google Ads Local Leads
 
When to use Machine Learning Models in SEO and Which ones to use - Lazarina S...
When to use Machine Learning Models in SEO and Which ones to use - Lazarina S...When to use Machine Learning Models in SEO and Which ones to use - Lazarina S...
When to use Machine Learning Models in SEO and Which ones to use - Lazarina S...
 

Product life cycle

  • 1.
  • 2. PRODUCT LIFE CYCLE “The product life cycle is an attempt to recognize distinct stage in the sales history of the product.” -Philip Kotler “From its birth to death, a product exists in different stages and in different competitive environments. Its adjustment to these environments determines to great degree just successful its life will be.” – Willian J. Stanton  Like a human being, Each product has to cross various stages in its life. It involves five distinct stages: Product development, Introduction, Growth, Maturity & Decline.  Most product life cycle curves are portrayed as bell-shaped.  After the decline stage, the product finally come to an end.
  • 3. WHY A PRODUCT LIFE CYCLE? A company should change its positioning and differentiation strategy as the product, market and competitors change over their strategies with the respective product life cycle(PLC). When we say that a product has a life cycle we consider four important things: i. Products have a limited life. ii. Products sales pass through distinct stages, each posing different challenges, opportunities and problems to the marketer. iii. Profits rise and fall varies at different stages of the product life cycle. iv. Products require different marketing, financial, buying, manufacturing, and human resource strategies in each life– cycle stages.
  • 4. USEFULNESS OF PRODUCT LIFE CYCLE  As a Planning Tool  As a forecasting tool  As a control tool  To decide for developing a new product
  • 5.
  • 6. INTRODUCTION STAGE OF THE PLC Sales Costs Cash Flow/Profits Marketing Objectives Product Price Very Low sales High cost per customer Negative or negligible Create product awareness and trial Offer a basic product to meet customer needs Use cost-plus, High Distribution Build selective distribution Advertising Build product awareness among early adopters and dealers Market Expenditure High Working Capital Moderate
  • 7. MARKETING STRATEGIES FOR INTRODUCTION STAGE  Use of Sales promotion schemes  Focus on Early Adopters  High pricing strategy to introduce new technology  Penetration pricing strategy in case if the still competition prevailing  Reduce the time span
  • 8. Sales Costs Profits Marketing Objectives Product Price Rapidly rising sales Average cost per customer High profits Maximize market share Offer product extensions, service, warranty Price to penetrate market, Lower price Distribution Build intensive distribution Advertising Build awareness and interest in the mass market GROWTH STAGE OF THE PLC Cash Flow Improving Working capital Improving
  • 9. MARKETING STRATEGIES FOR GROWTH STAGE  Price Reduction  Improve product quality and styling; add new product features  New uses of the product  More uses of the product  Enter into new market segments  Focus on “Early Majority”  Increase promotional expenditures  Reduce the prices to attract buyers  Enter into new distribution channels
  • 10. Sales Costs Profits Marketing Objectives Product Price Reasonable Sales Moderate cost per customer Stabilized or low profits Differentiated products Price to match or best competitors Distribution Build more intensive distribution Market Expenditure Falling MATURITY STAGE OF PLC Maximized profits while defending market share Cash Flow Consistently high Market Emphasis Brand Loyalty
  • 11. MARKETING STRATEGIES FOR MATURITY STAGE  Introduction of new products  Intensive use of Advertisement and Sales promotion Techniques  Re-positioning of Brand  Improve the quality of the product  “Differential Advantage” Strategy  Focus on “Late Majority”  Product alteration and modification  Creating New Buyers  Increase the usage of product among the current buyers
  • 12. Sales Costs Profits Marketing Objectives Product Price Sales down Low cost per customer Declining profits or negative Reduce expenditure and milk the brand Phase out weak items Cut price Distribution Go selective: phase out unprofitable outlets Market Emphasis Selective Distribution DECLINE STAGE OF PLC Cash Flow Low LowMarket Expenditure Competitor Reduced Withdrawn
  • 13.  Product Simplification Decision  Selective Distribution  Intensive Care Unit Treatment  Abandon the product  Pruning out unprofitable sizes and models to make efficient product assortment  Strategic Alliance  Improve the functionality of the product  Make production and marketing functioning efficient MARKETING STRATEGIES FOR DECLINE STAGE
  • 14. LIMITATIONS OF PRODUCT LIFE CYCLE  Product don’t have predictable life and the specific life cycle curves  The life cycle of one product varies from the life cycle of another product  For all practical reasons PLC doesn’t exist  PLC may be used as a descriptor not as a predictor  It is very difficult to identify the factors which will affect product’s movement in different stages  It is very difficult to predict when the product moves to next stage of PLC  It is also very hard to identify at which stage of PLC the product is in.

Editor's Notes

  1. Introduction. In this stage marketers spend heavily on promotions to inform the target market about the new product's benefits. Low or negative profits may encourage the company to price the product high to help offset expenses. companies can concentrate on skimming strategies to generate high profits now or on penetration strategies to build market share and dominant the market for larger profits once the market stabilizes.
  2. Product Life-Cycle Strategies This CTR relates to the material on pp. 289-290 and 293.
  3. Product Life Cycle Strategies Maturity. In this stage the company must manage slower growth over a longer period of time. Strategic decisions made in the growth stage may limit choices now. Marketing managers must proactively seek advantage by either market modification to increase consumption, product modification to attract new users (quality, feature, and style improvements), or marketing mix modification in an attempt to improve competitive position.
  4. Product Life-Cycle Strategies This CTR relates to the material on pp. 292-293.