Product life cycle

1. PRODUCT LIFE CYCLE

2. PRODUCT LIFE CYCLE
• Product, like human beings, have a life cycle which
is called the product of life cycle or PLC. The PLC
refers to a products sales growth from the beginning
its peak, followed by a decline and its eventual
withdrawal from the market. In more death of a
product.
• Affecting life cycle, namely consumer demands
competition, and government rulings. These forces
are beyond the control of company and the
influence of its marketing efforts.

3. THE INTRODUCTION STAGES
• in this stage, the product in introduced to the
public. It is generally characterize by the
following;
• 1.slow sale growth
• 2.heavy promotional expenditures in relation to
sale
• 3.relatevety high price of the products, and
• 4.lemeted product offerings, like limited
variations in size color ect.

4. THE SLOW SALE GROWTH ATTRIBUTED TO THE
FOLLOWING
• 1.delays in the expansions of product capacity.
• 2.technical product problems that have to be worked out.
• 3.difficulty in gaining widespread distribution, and
• 4.enertia on the part of consumer in trying the new
product.

5. HEAVY PROMOTIONAL EXPENDITURES ARE
ATTRIBUTED TO
• 1.heavy sales costs involving in obtaining
distribution, and
• 2.the need for heavy advertising to create
consumer awareness and trial.

6. HIGH PRICE ARE CAUSED BY;
• 1.the need to recover investment costs in
plant and equipment; and
• 2.low volume of sale.

7. THE GROWTH STAGE
• The growth stages in the PLC follows a successful
introduction stages. The growth stages is characterize by the
following;
• 1.sales start climbing rapidly as distribution increases and the
consumers are persuaded to try the product.
• 2.the ratio of promotions expenditures to sales decreases.
• 3.the prices tend to remain high expect when demand
stimulation is required and entry of competitors is discouraged
• 4. new forms of the product appear, like new colors, new
models, new size, etc

8. THE MATURITY STAGES
• When the growth sales slows down, the maturity stages
begins to take over. This stages is characterize further
by the following;
• 1.sales settle down as the product becomes well-known
• 2.the reductions are used as a tool of competition
• 3.compatition is intensified
• 4.the market becomes saturated.

9. THE DECLINE STAGES
• The decline stages begins w/ a permanent
drop in sales. The stages is further
characterize by;
• 1.a pruning of product models and variations to
eliminate those not producing profit.
• 2.promotional expenses are reduced.
• 3. plans for phasing out the product is made.

10. THE IMPORTANCE OF THE PRODUCT LIFE
CYCLE CONCEPT
• The concept of the product life cycle is important to the
marketing in the sense that it provides him with a guide in
adapting appropriate marketing strategies. The marketing
action required is the introduction stages of the PLC, for
instance, will be much different that what is required in the
growth stages.
• An example of the usefulness of the PLC concept is when it
is used as a basic for harvesting reasonable earnings from
weak product .suffice it to say that the PLC concept may by
used extensively to assist the marketing in achieving his
marketing goals.