202 - Marketing Management [Unit 1: Introduction] [BBA II, Rajasthan University]

MARKETING MANAGEMENT
UNIT 1
MARKETING IS PROMOTION OF A PRODUCT
MOTTO: SALE OF PRODUCT
OR FUTURE SALE OF PRODUCT.

UNIT 1: SYLLABUS
Marketing Management: Introduction
Nature, Scope, Importance, Concept
(as per University of Rajasthan)
Product Differentiation
Brand, Trademarks
Packaging, Labelling, Product Life Cycle

Marketing refers to activities

undertaken by a company to

promote the buying or selling of a

product or service.
Management is the process of planning

and organising the resources and

activities of a business to achieve

specific goals in the most effective and

efficient manner possible
MEANING
1/2
MARKETING MANAGEMENT - UNIT 1: INTRODUCTION

ABOUT PHILIP KOTLER
Figure: Philip Kotler
Father of Marketing
For General Knowledge
Philip Kotler, known as father of Marketing is an American
marketing author, consultant, and professor emeritus of
International Marketing at the Kellogg School of Management at
Northwestern University (1962–2018).
He defines Marketing as:
"Marketing is a social and managerial process by which individuals
and groups obtain what they need and want through creating and
exchanging products and value with other"
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NATURE
GOAL ORIENTED
MANAGERIAL FUNCTION
Marketing is managing the product, place,

price and promotion of business to generate

revenue.
GOAL ORIENTED
CUSTOMER ORIENTED
Marketing is a customer-centered function

of the business. It aims at finding out what

customers want and fulfilling their needs by

delivering them the right products
GOAL ORIENTED
UTILITY CREATION
It establishes utility to the consumer

through four different means:
Form, Time, Place and Possession.
GOAL ORIENTED
SCIENCE AND ART
Creating demand of the product among

consumers is an art and understanding human

behaviour, and psychology is a science.
GOAL ORIENTED
GOAL ORIENTED
It aims at accomplishing the seller’s

profitability goals and buyer’s purchasing

goals.
GOAL ORIENTED
DYNAMIC PROCESS
Marketing keeps on changing from time to

time to improve its effectiveness.
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OF MARKETING

CONTINUOUS ACTIVITY
Marketing is a regular and continuous

activity of business for selling their

products. Businesses always need to

monitor the marketing environment and

should accordingly plan, implement, and

control all marketing programs
MANAGES 4 P’S
It is a combination of four elements that are

product, place, price, and promotion. The

whole marketing system is made up of these

variable factors which are influenced by

customer behavior, competition, trade

factors, etc.
ECONOMIC PROCESS
It is a process that involves exchanges of

goods in monetary terms. Marketing is one

by means of which monetary transactions as

per the exchange value of goods take place

for transferring goods among buyers and

sellers.
CREATES MARKET OFFERING
Marketing provides offers of various goods

and services to potential customers. It is the

one that communicates all information

regarding products like its prices, uses,

quality, and technology to customers.
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NATURE
OF MARKETING

CUSTOMER ORIENTED
- All business activities should be directed towards
satisfaction of customer.
- Emphasis on the needs and wants of consumers keeps
the business on track.
- All marketing decisions should be made on the basis
of their impact on the customer.
- Consumer becomes the guide for marketing decisions
MARKET RESEARCH
Marketing Department needs data of customer's needs, wants

and desires in order to formulate a marketing campaign.
In order to gather that data, marketing department conduct a

regular systematic 'marketing research programme'.
'Marketing Research Programme' helps Marketing Department

to compete in market through campaigns which is based on

data through Marketing Research Programme.
Marketing Research Programme -> Data collection of

Consumers needs, wants and desires -> Campaign Creation

using the data
MARKET PLANNING
The marketing concept calls for a goal-oriented approach
to marketing.
The overall goal of the firm is to earn of profits through
satisfaction of customers.
On the basis of this goal, the planning of marketing and
other departments is done to achieve those targets.
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CHARACTERISTICS
OF MARKETING

INTEGRATED MARKETING
It is necessary to harmonize the organisational goals with
the goals of the individuals who are working in the
organisation.
The activities and operation of various organisational
units (Marketing, Finance, HRM, Strategic, etc.) should
be properly coordinated to achieve the defined
objectives
CUSTOMER SATISFACTION
The aim 0f Marketing is to satisfy the consumer's needs,
wants and desires in long run to be able to maximise
profits.
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CHARACTERISTICS
OF MARKETING

GOAL ORIENTED
HELPS IN INCREASING PROFIT
Marketing caters to the varied and unlimited

needs of consumers. Marketing management

helps to increase profit and sales volume. This

is achieved by expansion of market and

increasing customers
EMPLOYMENT OPPORTUNITIES
Marketing process requires researcher,

production engineer, different distribution

intermediaries, sales personnel also creates

employment opportunities in advertisement

section. Thus marketing management opened

up different employment avenues thus creating
employment opportunities.
IMPROVEMENT IN QUALITY OF LIFE
Marketing management aims at providing

innovative product and services to the

customers. Marketers continuously strive to
incorporate new technology and mechanism in

their product to provide more satisfaction to

customers than before
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CHARACTERISTICS
OF MARKETING

GOAL ORIENTED
SETTING MARKETING GOALS
Task of marketing manager is to set marketing

goals and objectives.

Clearly and precisely defined objective can

help marketing manager to direct marketing

efforts effectively.
GOAL ORIENTED
SELECTING TARGET MARKET
Modern marketing practice is based on the

target market, and not on the total market.

Marketing manager cannot satisfy the needs

and wants of entire market. Managers must

concentrate their efforts on well-defined

specific groups of customers, known as the

target market.
GOAL ORIENTED
MAINTAINING HEALTHY RELATIONS
Marketing department needs cooperation from

other departments of organisation, including

financial department, personnel department,
and production department, to satisfy

customers effectively. Their support is

considered to be important to satisfy

consumers.
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EFFECTIVE CONTROL
Control involves establishing standards,

measuring actual performance, comparing

actual performance with standards, and taking

corrective actions (if needed).
Control keeps the entire marketing department

alert, active and regular.
SCOPE
OF MARKETING

GOAL ORIENTED
MARKETING RESEARCH ACTIVITIES
Marketing research involves systematic

collection, analysis, and interpretation of data

on any problem related to marketing. It

provides the manager with valuable

information on which marketing decisions can

be taken.
SALES MANAGEMENT
Sales management concerns with planning,

implementation, and controlling selling efforts.

It performs all the activities directly related to

execution of sales
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SCOPE
OF MARKETING

ANALYZING MARKET OPPORTUNITIES
Marketing Management collects and analyzes

information related to consumer’s needs,

wants and demands, competitor’s marketing

strategies, changing market trends and

preferences. This helps to identify market

opportunities
DETERMINATION OF TARGET MARKET
Marketing Management helps to identify the

target market that the organization wishes to

offer its product.
PLANNING AND DECISION MAKING
Marketing management helps to prepare future
course of action.
Planning relates to product introduction
diversification.
Decision making relates to planning and taking
decisions regarding pricing, selection of
promotion mix, selection of distribution channel.
CREATION OF CUSTOMER
Consumers determine the future of the

market. Therefore providing the best product

to the consumer according to their preference

is the important task of marketing
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IMPORTANCE/SIGNIFICANCE
OF MARKETING

BUILDING A MANAGEMENT TEAM
One of the toughest challenges for a business

owner is to find the right people for the

management team. The owner must identify

the combination of skills and experience that

will give the company the best chance for

success, and the ideal combination is subtly

different for every business
SUPERVISING AND MOTIVATING
Employees need direction and to understand

what is expected of them. They also need to be

able to voice their opinions and concerns.
Motivating employees to put forth greater

effort is easier if they believe that the company

appreciates their contributions to its success.
ALLOCATING RESOURCES
Every decision a business owner makes

involves recognizing that the company’s

financial and human resources are limited.

Success depends on making good choices

about how to allocate these resources. The

business planning process is critical to

achieving efficient resource allocation.
ANTICIPATING TRENDS
A creative aspect of management is being able

to spot emerging opportunities before the

company’s competitors are able to. These

include potential customer groups, new

channels of distribution that could boost sales

and new technologies that could make the

company more efficient
CHALLENGES
OF MARKETING
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CHANGING ENVIRONMENT
A company is greatly affected by the

environment around it, including both the local

and national economy, and the actions of

competitors. Conditions can change rapidly,

requiring quick reactions and adjustments in

strategies. If a business owner sees new

competitive threats emerging, he must be able

to devise strategies to quickly counter these

threats.
CONTINUAL IMPROVEMENT
Companies must strive to continually improve

all areas of their operations. Being satisfied

with current performance can mean falling

behind competitors that are more aggressively

improving their products, customer service

levels and profit margins
CHALLENGES
OF MARKETING
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ENTREPRENEUR FREEDOM
Industries and businesses are having a comfortable and

great time but the entrepreneurial freedom did help

entrepreneurs enter industries of their choice but for some

of the existing players, the new freedom implied

destabilisation. Their markets, market shares and profits

came under great pressure.
NO PROTECTION FOR EXISTING BUSINESS
While the entrepreneurial freedom helped the new

entrants that it threw the existing players out of the

cocoon of protection, it means that unlike in the past,

profits could no longer be secured by procuring a

license and setting up an industrial unit.
EXISTING NOTIONS ON ECONOMIC SIZE ARE SHAKEN
In the past, the governments licensing policy

determined the economic size for industry. Enterprises

had to be content with smaller capacities, as licenses

were just not available for larger capacities. Operating

on a smaller scale was a compulsion enjoined by the

regulated economy.
COMPETITION WITHIN LOCAL COMPANIES
Indian business firms having impression that they would

never be required to go beyond their home market. With the

growth in entrepreneurial freedom capacity expansion by

existing as well as new players became a regular character in

many industries. These developments led to an

intensification of the competition in the Indian market.
CHALLENGES
OF MARKETING IN LIBERALIZED ECONOMY
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TECHNOLOGICAL OBSOLESCE
With globalization, technology has emerged as a vital factor

for Indian firms. Consumers perception regarding products

is uncertain. In addition to the opportunity technology

encompasses a threat. Technological change makes

products and business suddenly obsolete/out of fashion.
INCREASING ECONOMIC SIZE
Most companies now felt that if they were to compete with

the MNCs and larger Indian companies, they had to

consolidate and become big. Many of them preferred to get

bigger in their business quickly through mergers and

takeovers and acquisitions.
Reliance Industries Ltd. (RIL) is one such company which has

taken a lead in backward integration, expansion, mergers,

acquisitions and so on and believed in world class capacities.
CHALLENGES
OF MARKETING IN LIBERALIZED ECONOMY
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Marketing Concept is the strategy that organization implement to
- satisfy customers needs
- increase sales
- maximize profit and beat the competition.
- There are 5 marketing concepts that organizations adopt and
execute.
- Marketing is a department of management which tries to design
strategies that will build profitable relationships with target
consumers.
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CONCEPT
OF MARKETING

PRODUCTION
CONCEPT
SELLING
CONCEPT
SOCIETAL
MARKETING
CONCEPT
MARKETING CONCEPT
PRODUCT
CONCEPT
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CONCEPT
OF MARKETING

- Product Concept is a marketing philosophy which assumes that customers admire

quality-rich products, with advance features.
- The firm invests a lot of resources like money, time and manpower in order to

research the needs and expectations of the target audience from the product.
- The managers often believe that a product with outstanding quality and features

will create its own market.
- Managers are unaware of the fact that a product cannot be successful in the

market if it is not priced, advertised, distributed and sold in right manner.
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(1) PRODUCT CONCEPT
IN CONCEPTS OF MARKETING

- Production Concept is an approach which believes that customers are

willing to buy the products which are easily available at low prices.
- Orgnization that accompany the production concept, has emphasis on

production i.e. manufacturing goods on a mass scale and profit out of the

economies of scale and focuses on quantity, not quality.
- Marketers do not emphasise on needs, wants and desires of the consumers.
- Consumers are usually unsatisfied with quality of the products.
MCDONALD’S AND FAST FOOD CHAINS IN

GENERAL ALSO AIM TO ACE THEIR OPERATIONS

HAVING LOWER QUALITY ICE CREAM MACHINES

IN PARTS OF THEIR FOOD CHAINS ACROSS THE

GLOBE AS THEY DIDN'T FOCUS ON QUALITY BUT

ONLY QUANTITY.
(2) PRODUCTION CONCEPT
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BASIS FOR

COMPARISON
PRODUCT CONCEPT PRODUCTION CONCEPT
Meaning
Product Concept is a marketing

philosophy which assumes that

customers admire quality-rich

products, with advance features.
Production Concept is an approach

which believes that customers are

willing to buy the products which are

easily available at low prices.
Means Improvement in product over time
Improvement in the production

efficiency and distribution coverage.
Objective
To provide better quality products to

the customers.
To achieve the economies of scale.
Emphasis on Product Production
DIFFERENCE
BETWEEN PRODUCT CONCEPT AND PRODUCTION CONCEPT
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- The purpose of Selling Concept is to sell the company’s product through large-

scale marketing and promotional activities.
- Customer Satisfaction is not their priority.
-The sale concept is based on a very weak notion that the company should sell

whatever they’re manufacturing instead of meeting customer’s demands.
- Marketers believe that if consumers don’t like the company’s product, they’ll

forget about their past shopping experience and buy it again
-The sale concept is based on the false presumption that the customers don’t

remember their past buying experience.
BLOOD DONATIONS AND INSURANCE

POLICIES ARE EXAMPLES WHERE THE

MARKETER BELIEVES THAT THEIR JOB IS

DONE AFTER MAKING THE

TRANSACTION.
(3) SELLING CONCEPT
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Parameters of

Comparison
Production concept Selling Concept
Process level
It is the first step taken into consideration when

implementing marketing concepts.
The third step taken in the marketing concept

ladder, right after production and product concepts.
Purpose
The concept is applied by the company to

enhance their product quality and improve it

through extensive research.
Here, the company has to find methods to push

their improved products to the customers and make

a sale.
In-dept

components
The main focus is on production costs,

high efficiency and large volume for production.
The main focus is on advertisement and promotion

and showing the high quality of the product.
Steps Routing, Scheduling, dispatching, follow-up.
Prospecting, Preparation, Approach, Presentation,

Handling objections, Closing, Follow-up.
Source
Starts with the raw materials involved in the

manufacturing of goods.
Starts with the finished products made in the

factory, which are rolled out to the customers.
DIFFERENCE
BETWEEN PRODUCTION CONCEPT AND SELLING CONCEPT
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- Marketing Concept is customer oriented which places consumer's needs,

wants and desires first and then meeting those demands better than their

competitors.
- Marketers do not search for the right customers for their product; instead,

they build the right product.
- Marketers seek to bridge the gap between the consumers and the company’s

products.
(4) MARKETING CONCEPT
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- The idea behind the societal marketing concept is based on the

society welfare because it examines strategy of the marketing

concept.
The goal and aim of the societal marketing concept is to
make companies understand that they have a friendly and

environmental responsibility, much more important than their

short-term sales and profit goals.
(5) SOCIETAL MARKETING CONCEPT
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MARKETING CONCEPT SOCIETAL MARKETING CONCEPT
To maximize consumer satisfaction.
To maximize long-term interest and welfare of

consumers and society.
Consumers will buy If they are satisfied.
Consumers will buy if they are satisfied with

protection of long-term interest
Normally two-way. Actively two-way.
Produce what you can sell.
Produce what you can sell but with protecting

long-term interest of consumers and society.
It is the modern concept. It is the latest concept.
Scope is wide. Scope is wider or comprehensive.
DIFFERENCE
BETWEEN MARKETING CONCEPT AND SOCIETAL MARKETING CONCEPT
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MARKETING CONCEPT SOCIETAL MARKETING CONCEPT
Find out needs and wants of the target market and

satisfy them more effectively than competitors.
Find out needs and wants of target market and satisfy

them in a way that consumers’ and social interest and

welfare are protected.
Probably two-way Seller and probably buyers are

benefited.
Three-way benefits. Consumers, seller, and society are

benefited.
Maximum profit with maximum consumer

satisfaction.
Reasonable profit with protection of consumers’

interest and social welfare.
No guarantee. There is guarantee for moral justice.
It starts with market or consumers. It stars with consumers and society
It follows only integrated approach.
It follows Integrated as well as the relationship

approach.
The target is only market. The target is market as well as the entire society.
DIFFERENCE
BETWEEN MARKETING CONCEPT AND SOCIETAL MARKETING CONCEPT
1/1

Product Differentiation is a marketing strategy designed to
distinguish a company's products or services from the competition
Organization show their product's uniqueness and make them
stand out from their competitor's products.
Product Differentiation can create a competitive advantage for the
product seller and ultimately build brand awareness.
TESLA DIFFERENTIATES ITSELF FROM

COMPETITORS WITH THEIR INNOVATIVE,

PREMIUM AND BATTERY-OPERATED CARS
JIO DIFFERENTIATES ITSELF FROM OTHER

MOBILE OPERATORS WITH THEIR CHEAP,

FAST AND RELIABLE INTERNET.
PRODUCT DIFFERENTIATION
IN MARKETING
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A key term to remember is USP, which is the acronym for
Unique Selling Point

A Unique Selling Point is a feature that separates a product from its
competitors.
A USP can be:
- a lower price (iPhone SE)
- a smaller version of the product (iPhone Mini)
- offering extra functions (iPhone Pro Max)
UNIQUE SELLING POINT (USP)
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OF PRODUCT DIFFERENTIATION

VERTICAL
DIFFERENTIATION
HORIZONTAL

DIFFERENTIATION
MIXED

DIFFERENTIATION
Vertical Differentiation exists when consumers

compare a product according to one feature only.
With Horizontal Differentiation,
the product is harder to classify

because it has many features.
It is a combination of both i.e
Vertical + Horizontal
Differentiation
Customers rank Products based on a measurable

factor,
such as price or quality, and then choose the

most highly ranked item
Customers choose products based

on personal preference,
rather than an objective

measurement
If a product is perceived to be better

in some way than its competitors,

consumers will consider it worth the

higher price.
- Restaurant might top one customer's list

because their meals are lower in calories, health

is important factor to them.
- Another customer might choose a different

restaurant because the meals are cheaper, and

price is the most important factor for them
When someone chooses a vanilla,

chocolate, or strawberry milkshake,

it comes down to personal

preference of what a person like.
Company X produces a coffee maker

virtually identical to Company Y.
Company X may offer a version at a

lower cost. If it comes with a reusable

filter, the savings on paper filters,

customer will likely to go with X.
DIFFERENT TYPES
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CREATES VALUE
When a company uses a differentiation

strategy that focuses on the cost value of the

product versus other similar products on the

market, it creates a perception among

consumers and potential customers about
product being affordable.
NON-MONETARY COMPETITION
The product differentiation strategy also

allows business to compete in areas other than

price.
A car manufacturer may differentiate its line of

cars as an image enhancer or status symbol

while other companies focus on cost savings.
BRAND LOYALTY
A successful product differentiation strategy

creates brand loyalty among customers
The company must continue to deliver quality

or value to consumers to maintain customer

loyalty. In a competitive market, when a

product doesn’t maintain quality, customers

may turn to a competitor.
NO REALIZATION OF SUBSTITUTE
A product differentiation strategy that focuses

on the quality and design of the product may

create the perception that there’s no

substitute available on the market.
Example: iPhone have dated hardware in

screen(notch) while OnePlus 7 Pro have full

screen but people choose iPhone as it is shown

as premium device
ADVANTAGES
4/4

- Brand refers to marketing concept that helps people identify a

particular company or product.
- Brands are intangible, which means we can't actually touch or

see them.
- They help shape people's perceptions of companies, their

products or individuals.
- They provide enormous value to the company and give

competitive edge over others in the same industry.
- Many organization seek legal protection for their brands by

obtaining trademarks.
BRAND
IN MARKETING

The term trademark refers to a recognizable logo, phrase, word,

or symbol that denotes a specific product and legally

differentiates it from all other products of its kind.
A trademark exclusively identifies a product as belonging to a

specific company and recognizes the company's ownership of
the brand.
Trademarks are generally considered a form of intellectual

property and may or may not be registered.
Example:
- "Coca Cola Zero" is trademarked by Coca Cola.
- "Touchbar" and "Airtag" are trademarked by Apple.
TRADEMARKS
IN MARKETING

Meaning:
- Packing is the process of covering, wrapping or crating goods

into a package. This is done for the purpose of delivering the

product.
- Packaging involves designing and producing the

container/wrapper for the product.
- If is often remarked as a silent sales-men.
- Packaging decision may affect production, distribution, research

and development, sales, accounting, and finance.
“Packaging may be defined as the general group of

activities in product planning which involves designing

and producing the container or wrapper for a product”
- Professor William Stanton
PRODUCT PACKAGING
IN MARKETING
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Motives of Packaging:
(i) holding together the contents
(ii) protecting product while passing through distribution channels
Packaging Materials:
(i) Wood (ii) Metals (iii) Plastics
(iv) Paper (v) Glass (vi) Polyester
Elements of Packaging:
(i) It should protect the contents
(ii) It should be attractive
(iv) It should be informative
(iii) It should be pollution free/less carbon footprint
MOTIVES, MATERIALS AND ELEMENTS
OF PRODUCT PACKAGING
2/4

PROVIDE PROTECTION
Packaging of objects ensures that they are

protected against vibration, temperature,

shock, compression, deterioration in quality

etc. Packing and packaging also protect the

products against theft, leakage, pilferage,

breakage, dust, moisture, bright light etc.
HELPS IN MARKETING
Good packing and packaging along with

attractive labelling are used by sellers to

promote the products to potential buyers. The

shape, size, colour, appearance etc. are

designed to attract the attention of potential

buyers.
PROVIDES PRODUCT INFORMATION
Information relating to the raw materials used,

the type of manufacturing process, usage

instructions, use by date etc. are all very

important and should be conveyed to the

users.
PROVIDE CONVENIENCE
Packing and packaging also add to the

convenience in handling, display, opening,

distribution, transportation, storage, sale, use,

reuse and disposal.
WHAT ARE OBJECTIVES PRODUCT PACKAGING?
OBJECTIVES
3/4

01 03
02
PRIMARY
SECONDARY
TERTIARY/
SHIPPING
Primary Packaging
It is the used in direct contact with the product itself and is sometimes
referred to as a consumer unit.
The main purpose of primary packaging is to contain, protect and/or
preserve the finished product, particularly against contamination
Secondary Packaging
It is used outside of primary packaging to group certain number of
products to create a Stock Keeping Unit(SKU).
It facilitates the handling of smaller products by collating them into a
single pack. This type of packaging also provides supplementary
protection to help maintain the integrity of the primary packaging.
Tertiary/Shipping Packaging
It is used to group larger quantities of SKUs to transport them from point
A to point B (e.g. from production facility to point of sale). During this
stage, products are handled as distribution units. This type of packaging
makes it easier to transport large and/or heavy loads safely and securely.
TYPES
4/4

Meaning:
- Labelling is the display of all the information on the

product/packaging material.
- While labelling a product the company has to fulfil all the legal

requirements like (i) ingredients (ii) nutritional (iii) safety

information mentioned under Competition and Consumer Act 2010
Types:
(i) Brand Label: This part of labelling gives information about the

product.
(ii) Descriptive Label: This specifies product usage.
(iii) Grade Label: It specifies the aspect and features of the product.
- Product labelling is different from packaging.
LABELLING
IN MARKETING
1/3

DIFFERENTIATE GRADE AND TYPE
Every Shampoo has different types. Besides

changing the design and packaging style of the

product, they also change the label on the

shampoo. Some of them will say that the
shampoo is Anti-dandruff shampoo whereas

the other will say smooth silk. Thus, product

labelling can be used to differentiate between

the various grades and type of the product.
REQUIREMENT BY LAW
There are numerous labelling requirements

which might be specified by a regulatory body.

Some of them which are very common include

Ingredients, manufacturing plant, batch

number, expiry date, MRP, safety instructions

etc. Thus, a company has to consider all legal

requirements before deciding on the product

labelling.
PROVIDES MANUAL TO USE
Some products use a manual to communicate

the same whereas others imbibe usage

instructions on the packaging itself.
ADDITIONAL INFORMATION
There may be additional information on the

product, of use to the customer, which can be

used for product labelling. Example – A packet

of Maggi which is made of whole wheat might

have a picture of Maggi packet on top of wheat.

This image will show that the product is healthy

and might encourage customers to buy the

product
IMPORTANCE
OF LABELLING
3/3

Parameters Packaging Labelling
Meaning
It is a process of designing and

creating a container for a product
It is a display of all the information on

the packaging material or product itself.
Purpose
To protect the product, product

identification, marketing tool
To provide product features and

influence the customer’s decision
Function
It helps customers with
decision-making process
To give information about the product

such as ingredients, expiry date,

contents, etc.
Advantages
Product safeguard, facilitates

storage, helps in the sales process,

minimizes adulteration
Helps in selling the product by giving a

clear picture of the product
DIFFERENCE
BETWEEN PACKAGING AND LABELLING
2/3

The term product life cycle (also known as PLC) refers to the 'length of

time' of 'product which is introduced to consumers' into the market

'until it's removed from the shelves'.
The life cycle of a product is broken into four stages—
(i) Introduction
(ii) Growth
(iii) Maturity
(iv) Decline
- This concept is used by management and by marketing professionals

to decide when it is appropriate to increase advertising, reduce prices,

expand to new markets, or redesign packaging.
- The process of strategizing ways to sustain a product is called

product life cycle management.
PRODUCT LIFE CYCLE
IN MARKETING
1/5
"The product life cycle is an attempt

to recognise distinct stages in the

sales history of the product"
- Philip Kotler

- This stage involves making consumers aware about the product and its

benefits through developing market strategy and executed by investment in

advertising and marketing.
At this stage, sales tend to be slow as demand is created. This stage can take

time to move to next stage depending on its complexity, how new and

innovative it is, how it suits customer needs and whether there is any

competition in the marketplace.
A new product development that is suited to customer needs is more likely

to succeed, but there is plenty of evidence that products can fail at this

point, meaning that stage two is never reached.
For this reason, many companies prefer to follow in the footsteps of an

innovative pioneer, improving an existing product and releasing their own

version.
STAGE 1: INTRODUCTION
IN PRODUCT LIFE CYCLE
2/3

- If a product successfully navigates through the market introduction it is

ready to enter the growth stage of the product life cycle.
- In growth stage demand of product increases and to fulfil the demand,

production also increases which results in product becoming more widely

available.
At this point competitors may enter the market with their own versions of

your product – either direct copies or with some improvements.
Branding becomes important to maintain product position in the

marketplace as the consumer is given a choice to go elsewhere
STAGE 2: GROWTH
3/5

- At this point a product is established in the marketplace and so the cost of

producing and marketing of existing product will reduce.
- Company bring new changes to the product or introduce new product under

same brand to sustain in market.
- It is assumed that many consumers have now bought the product and

competitors of product are established which means branding, price and

product differentiation becomes even more important for company to

sustain in market.
- Retailers no longer seek to promote product but instead stock up product as

product is well known to consumers.
stockist = retailer that stock

goods for particular type of sale
STAGE 3: MATURITY
4/5

- Eventually, as competition continues to rise, with other companies seeking

to emulate your success with additional product features or lower prices, so

the life cycle will go into decline.
- Decline can also be caused by new innovations that supersede your

existing product, such as horse-drawn carriages going out of fashion as the

automobile took over.
- Many companies will begin to move onto different ventures as market
saturation means there is no longer any profit to be gained.
- Consumers may also turn away from a product in favour of a new

alternative, although this can be reversed in some instances with styles and

fashions coming back into play to revive interest in an older product.
STAGE 4: DECLINE
5/5

202 - Marketing Management [Unit 1: Introduction] [BBA II, Rajasthan University]

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