The document discusses the product life cycle concept, which suggests that products pass through four stages - introduction, growth, maturity, and decline. Each stage is characterized by different sales, costs, profits, and marketing strategies. The introduction stage involves low sales and high costs as products are new. Growth sees rising sales and profits as distribution expands. Maturity involves maximizing profits through brand and model diversification. Finally, decline has falling sales and profits as products are phased out. The concept is based on assumptions like stages varying in length and not all products passing through every stage.

1. SUBJECT : MARKETING MANAGEMENT
TOPIC: PRODUCT LIFE CYCLE
GUNAVATHI H D
DOS in Commerce
1st M.com

2. CONTENTS
1. INTODUCTION
2. DEFINITION
3. STAGES OF PLC
 INTRODUCTION
 GROWTH
 MATURITY
 DECLINE
4. ASSUMPTIONS OF PLC
5. CONCLUSION

3. INTRODUCTION
The product life cycle concept suggests that a product passes through
four stages of evolution from its initial introduction in the market through to its
withdrawal. These stages are introduction, growth, maturity and decline. As a
product evolves and passes through these four stages profit levels change and
different strategies have to be employed to ensure product success.

4. DEFINITION
According to Philip Kotler
The product life cycle is an attempt to recognize the distinct stages in the
sales history of the product.
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 and in different competitive
environments.

5. PRODUCT LIFE CYCLE

6. INTRODUCTION STAGE OF THE PLC
Costs
Profits
Marketing
Objectives
Product
Price
Distributio
n
Advertisin
g
Low sales
Sales
High cost per
customer
Negative
Offer a basic product
Use cost-plus
Build selective
distribution
Build product awareness among
early adopters and dealers
Create product awareness and trial

7. MARKETING STRATEGY USED IN INTRODUCTION
STAGES-
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.

8. GROWTH STAGE OF PLC
Sales
Costs
Profit
Marketing Objectives
Product
Price
Distribution
Advertising
Average cost per customer
Rising profits
Maximize market share
Offer product extensions, service,
warranty
Price to penetrate market
Build intensive
distribution
Build awareness and interest in the
mass market
Rapidly rising sales

9. MARKETING STRATEGY USED IN GROWTH STAGE:
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.
Examples-Hyundai-I10.

10. MATURITY STAGE OF THE PLC
Sales
Costs
Profits
Marketing Objectives
Product
Price
Distribution
Peak sales
Low cost per customer
High profits
Maximize profit while defending
market share
Diversify brand and models
Price to match or best
competitors
Build more intensive
distribution
Stress brand differences and
benefits
Advertising

11. MARKETING STRATEGY USED IN MATURITY STAGE:
1. Market Modification-
Converting non users.
Entering new market segments.
Win competitors customers.
Redefine target market.
2. Product Modification-
Quality Improvement.
Adopting advance technology.
Product Differentiation.

12. DECLINE STAGE OF THE PLC
Sales
Costs
Profits
Marketing Objectives
Product
Price
Distribution
Advertising
Declining sales
Low cost per customer
Declining profits
Reduce expenditure and milk
the brand
Phase out weak items
Cut price
Go selective: phase out
unprofitable outlets
Reduce to level needed to retain
hard-core loyal customers

13. MARKETING STRATEGY USED IN DECLINE STAGES
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.
Divesting the business quickly by dropping off its assets as advantageously as possible.

14. PLC CONCEPT IS BASED ON FOLLOWING
ASSUMPTIONS-
Not all product introduced in the market essentially pass through all stages of its life cycle. It
is also possible that the product may attain introduction stage and then get phased out.
 There is no definite line of demarcation between the various stages of product life cycle.
At the same time, a product may be in different stages of its life cycle in different segment of
the market. For example, the product concerned may be in the introduction stage in Asian
market while facing decline in western countries.
The time span of each stage in PLC in respect of each product may vary. Thus, a product may
experience longer period in growth stage & relatively short period in maturity stage.

15. CONCLUSION
The product life cycle is a tremendous way of figuring out where a product lies in the
market and how much life span it has. It accurately describes the process a product goes
through in the market. Every product in the market has a life cycle and is currently in one of
the four stages.