2. Definition:- “ The stages through which the individual products develop over a
period of time is known as product life cycle.”
The product life cycle concept is derived from the fact that a given product’s
volume and revenue follow a typical pattern of four – phases cycle. This life cycle
is the representative fact of the existence of every product.
If we plot a graph of sales volume versus time for a product, generally, the PLC
represents a bell-shaped or s-shaped curve.
6. Rapid Skimming – Launching the new product at high price and
high promotional level.
Slow Skimming – Launching the new product at high price and low
promotional level.
Rapid Penetration – Launching of product at low price with heavy
promotion.
Slow Penetration – Launching the new product at a low price and
low level of promotion.
7.
8. Improved product quality and add new product features and styling.
Add new models and products of different sizes, color, shapes etc.
Enter new market segments.
Increase distribution coverage enter new distribution channels.
Shifts from product awareness to product preference advertising.
Lower prices to attract next layer of price sensitive buyers.
12. Increase the given firms investment to dominate the market or
strengthen its competitive position.
Maintaining the given firms investment level until the uncertainties
about the industry are resolved.
Decrease the firms investment selectively, by dropping the
unprofitable customers group, while simultaneously strengthening
the firms investment niche segments.
Harvesting the firms investment to recover cash quickly.