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PRODUCT LIFE CYCLE.pptx

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Product life cycle
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PRODUCT LIFE CYCLE.pptx

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The 4 stages of the product life cycle are introduction, growth, maturity, and decline. Learn how to leverage this into your business strategy.

The 4 stages of the product life cycle are introduction, growth, maturity, and decline. Learn how to leverage this into your business strategy.

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PRODUCT LIFE CYCLE.pptx

  1. 1. PRODUCT LIFE CYCLE Presented by: Diksha Vashisht Specialization: Marketing
  2. 2. Meaning • All products have certain length of life during which they pass through certain identifiable stages. The PLC is a conceptual representation of product ageing process like our life is divided into stages same as life of a product is also divided. • Product start with introduction in the market for the purpose of sale. The demand of that product is gradually increased in the market & it reach to its maximum, from where it start decline. It is effective lifespan of a product.
  3. 3. Definitions: • According to William J. Stanton: “The Product Life Cycle concept is the explanation of the product from its birth to death as a product exists in different stages & in different competitive environments”
  4. 4. Stages of PLC
  5. 5.  Example of PLC Stages Time Duration Introduction 1995-2002 Growth 2002-2009 Maturity 2009-2011 Decline 2011 to till now
  6. 6.  Introduction Stage Penetration * This strategy usually set the product price very low initially & then gradually higher it over time. Example: NETFLIX  Skimming * In this case you set your prices very high at the beginning & then reduce gradually if necessary. Example: SUNSILK
  7. 7.  Growth Stage • If you are successful with your advertising strategy then you will see an increase in sales. Once your sales begin to increase your share of the market will stabilise.
  8. 8.  Maturity Stage If your product completes the Introduction & Growth stages then it will spend a great deal of time in the maturity stage. During this stage sales grow at a very fast rate & then gradually begin to stabilise.
  9. 9.  Decline Stage • This is the stage in which sales of your product begin to fall. Either everyone that wants to has bought your product or new, more innovative product have been created that replace yours. • Many companies decide to withdrawal their products from the market due to the downturn. The only way to increase sales during this period is to cut your costs reduce
  10. 10. Importance of PLC • Helpful in sales forecasting. • Helpful as a predictive tool • Helpful as a planning tool. • Helpful as a control tool • Helpful in price determination • Development of new product • Comparison of new products
  11. 11. Conclusion • The product life cycle describes how product goes through the four stages & the different mix of marketing activities in each phase is done to maximize the profitability of the product. • All products whether costly or cheap are mortal. • It explain the growth & decline of revenues & profits associated with a product or services

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