The document discusses the product life cycle and its four stages: introduction, growth, maturity, and decline. It explains that in the introduction stage, sales and profits are low as the goal is to create product awareness and trial. In the growth stage, sales rapidly rise as the goal is to maximize market share by offering extensions and penetrating the market. The maturity stage sees peak sales and profits as the goal is to maintain market share. Finally, in the decline stage, sales and profits fall as the goal is to reduce costs and retain loyal customers.

1. UNIT 2

2. VARSHA RATHOD(58)

3. ACCORDING TO ARCH PATTON-
“The life-cycle of a product has many points
of similarity with the human life-cycle ;the product is
born , grows lustily ,attains dynamic maturity then
enters its declining year.”
ACCORDING TO PHILLIP KOTLER-
“The product life-cycle is an attempt to
recognize distinct stage in the sales history of the
product.”

4. INTRODUCTION STAGE
GROWTH STAGE
MATURITY STAGE
DECLINE STAGE

5. IntroductionIntroduction GrowthGrowth MaturityMaturity DeclineDecline
TimeTime
SalesSales&&profitsprofits($)($)

8. SalesSales
CostsCosts
ProfitsProfits
Marketing ObjectivesMarketing Objectives
ProductProduct
PricePrice
Low salesLow sales
High cost per customerHigh cost per customer
NegativeNegative
Create product awareness
and trial
Create product awareness
and trial
Offer a basic productOffer a basic product
Higher than LifeboyHigher than Lifeboy
DistributionDistribution Build selective distributionBuild selective distribution
AdvertisingAdvertising Build product awareness among
early adopters and dealers
Build product awareness among
early adopters and dealers
Low salesLow sales
Create product awareness
and trial
Create product awareness
and trial
Offer a basic productOffer a basic product

9. SalesSales
CostsCosts
ProfitsProfits
Marketing ObjectivesMarketing Objectives
ProductProduct
PricePrice
Rapidly rising salesRapidly rising sales
Average cost per customerAverage cost per customer
Rising profitsRising profits
Maximize market shareMaximize market share
Offer product extensions, service,
warranty
Offer product extensions, service,
warranty
Price to penetrate marketPrice to penetrate market
DistributionDistribution Build intensive distributionBuild intensive distribution
AdvertisingAdvertising Build awareness and interest in
the mass market
Build awareness and interest in
the mass market

10. SalesSales
CostsCosts
ProfitsProfits
Marketing ObjectivesMarketing Objectives
ProductProduct
PricePrice
Peak salesPeak sales
Low cost per customerLow cost per customer
High profitsHigh profits
Maximize profit while defending
market share
Maximize profit while defending
market share
Diversify brand and modelsDiversify brand and models
Price to match or best
competitors
Price to match or best
competitors
DistributionDistribution Build more intensive distributionBuild more intensive distribution
AdvertisingAdvertising Stress brand differences and
benefits
Stress brand differences and
benefits

11. SalesSales
CostsCosts
ProfitsProfits
Marketing ObjectivesMarketing Objectives
ProductProduct
PricePrice
Declining salesDeclining sales
Low cost per customerLow cost per customer
Declining profitsDeclining profits
Reduce expenditure and milk the
brand
Reduce expenditure and milk the
brand
Phase out weak itemsPhase out weak items
Cut priceCut price
DistributionDistribution Go selective: phase out
unprofitable outlets
Go selective: phase out
unprofitable outlets
AdvertisingAdvertising Reduce to level needed to retain
hard-core loyal customers
Reduce to level needed to retain
hard-core loyal customers

12. HUMERA PATEL(18)

13. A firm can obtain new products through:
• Acquisition
• New-product development
9-4

14. Acquisition refers to the buying of a whole company, a patent,
or a license to produce someone else’s product
New product development refers to original products, product
improvements, product modifications, and new brands
developed from the firm’s own research and development
9-5

15.  Idea Generation and Screening
 Concept Development and Testing
 Marketing Strategy
 Business Analysis
 Product Development
 Test Marketing
 Commercialization

16. New idea generation is the systematic search for
new product ideas
Sources of new-product ideas
• Internal
• External
9-8
Idea Generation

17. Idea screening refers to reviewing new-product
ideas in order to drop poor ones as soon as
possible
9-10
Idea Screening

18. Concept Development and Testing
Product idea is an idea for a possible product that the company
can see itself offering to the market
Product concept is a detailed version of the idea stated in
meaningful consumer terms
Product image is the way consumers perceive an actual or
potential product
9-11
NEW PRODUCT
DEVELOPMENT PROCESS

19. Marketing Strategy Development
Standard test markets are small representative markets where
the firm conducts a full marketing campaign and uses store
audits, consumer and distributor surveys, and other
measures to gauge product performance. Results are used
to forecast national sales and profits, discover product
problems, and fine-tune the marketing program.
9-20

20. Marketing Strategy Development
Commercialization is the introduction of the new
product
• When to launch
• Where to launch
• Planned market rollout
9-25

21.  Overestimation of Market Size
 Product Design Problems
 Product Incorrectly Positioned, Priced or Advertised
 Costs of Product Development
 Under-estimation of market competition
 Inadequate market research
 Lack of uniqueness
 Wrong entry timing
 To create successful new products, the company must:
 understand it’s customers, markets and competitors
 develop products that deliver superior value to customers.

22. HARSHAL SHARMA(16)

23. 2º 3º 4º
RANKING MUNDIAL DE USUÁRIOS DE INTERNET
1º 5º 6º
Diffusion is the
process by which an
innovation is
communicated through
certain channels over
time among the
members of a social
system.
ROGERS
Diffusion of Innovations by Everett Rogers
Innovation is any new idea, new behavior, new product,
new message i.e., a new thing that one brings to you for
your adoption.

24. INNOVATION
COMMUNICATION CHANNEL
SOCIAL SYSTEM
TIME

25. 25
2º 3º 4º 5º
RANKING MUNDIAL DE USUÁRIOS DE INTERNET
1º 6º
ROGERS
Relative advantage
Compatibility
Complexity of transition
Possibility of testing
Visibility of benefits
Adoption probability grows if innovation has clear
advantages for product, service or current behavior
The more innovation is consistent with pre-existing
higher the adoption probability
Complex changes involved in innovation, reduce
adoption likelihood
A chance to try an innovation before making a final
decision increase adoption likelihood
The more obvious innovation benefits the greater
adoption likelihood

26. GAYATRI ERALE(ROLL NO-14)

27.  INTRODUCTION
 The adoption process is concerned with the
mental activity of the individual as the
person progress from exposure to the
innovation to the final acceptance or
rejection of the same.
 Adoption define differently for non-
repurchasable and repurchasable items.

28.  In context of non-repurchasable items, the decision
to buy the product is called as ‘Adoption’.
 In context of re-purchasable items, the decision to
regularly use the product, is called ‘Adoption’.

29. 1.AWARENESS
2.COMPREHENSIVE
3.ATTITUDE
4.LEGITIMATION
5.TRIAL
6.ADOPTION

30. 1. AWARENESS- In first stage consumer
becomes aware of the existence of the product.
Consumer does not formed any firm attitude
towards the product.
2. COMPREHENSION - In this stage, the
consumer develops some knowledge about the
product features and its potential.
3. ATTITUDE– At this stage, consumer forms
some favorable attitude towards the product.

31. 4. LEGITIMATION – In this consumer gets favourably
inclined towards the product and forms a favourable
dispostion towards the product.
5.TRIAL - In this stage consumer tries the product so as
to measure the product utility.
6. ADOPTION - In this consumer reaches the decision of
whether he will actually adopt the product or not.

32. 1)Innovation Aspects-The adoption of new
product depends on the relevences of the
innovation.
a)Relative Advantage
b)Compatibility
c)Complexity
d)Divisibility
e)Communicability
2)Organisational Aspects
3)People
4)Personal Influences

33. SHUBHAM KAMBLE(50)

34. The package = physical container or wrapping for a productThe package = physical container or wrapping for a product
It is an integral part of product planning and promotionIt is an integral part of product planning and promotion
 10% of the retail price is spent on developing,10% of the retail price is spent on developing,
designing, and producing just the packagedesigning, and producing just the package
Companies sometimes change packaging to update their imageCompanies sometimes change packaging to update their image
and reach a new marketand reach a new market

35. 1. Promoting and Selling the Product1. Promoting and Selling the Product
2. Defining Product Identity2. Defining Product Identity
3. Providing Information3. Providing Information
4. Expressing Customer Needs4. Expressing Customer Needs
5. Ensure Safe Use5. Ensure Safe Use
6. Protecting the Product6. Protecting the Product

36. Attractive, colorful, andAttractive, colorful, and
visually appealingvisually appealing
packages havepackages have
promotional valuepromotional value
A well designed packageA well designed package
is a powerful sellingis a powerful selling
device because it helpsdevice because it helps
the product stand outthe product stand out
from its competitorsfrom its competitors

37. Packaging is sometimes usedPackaging is sometimes used
to promote an image suchto promote an image such
as prestige, convenience, oras prestige, convenience, or
statusstatus
Can be a crucial part of theCan be a crucial part of the
marketing strategy,marketing strategy,
particularly in advertisingparticularly in advertising

38.  Gives customer usefulGives customer useful
information on:information on:
▪ directions for using thedirections for using the
productproduct
▪ its contentsits contents
▪ product guaranteesproduct guarantees
▪ nutritional valuenutritional value
▪ potential hazardspotential hazards

39. When designing packages, companiesWhen designing packages, companies
analyze customer lifestyles and createanalyze customer lifestyles and create
packaging that meets their needs forpackaging that meets their needs for sizesize
andand convenienceconvenience
Packages often come in various sizesPackages often come in various sizes
▪ Family sizeFamily size
▪ Single servingSingle serving

40. Proper packaging helps to eliminateProper packaging helps to eliminate
potential injuries or misuse of a productpotential injuries or misuse of a product
▪ Formerly glass containers are nowFormerly glass containers are now
plasticplastic
▪ Childproof capsChildproof caps
▪ Tamper resistant packagesTamper resistant packages
▪ Blisterpacks – packages with preformedBlisterpacks – packages with preformed
plastic molds surrounding individual itemsplastic molds surrounding individual items
arranged on a backingarranged on a backing

41.  Must protect during shipping, storage, and displayMust protect during shipping, storage, and display
 Prevent or discourage from tamperingPrevent or discourage from tampering
 Prevent shopliftingPrevent shoplifting
 Protect against breakage and spoilageProtect against breakage and spoilage

42. Label –Label – an identification tag, wrapper,an identification tag, wrapper,
seal, or imprinted message that isseal, or imprinted message that is
attached to a product or its packageattached to a product or its package
 Main function is to informMain function is to inform
customers about a product’scustomers about a product’s
contents and give directions for usecontents and give directions for use
 Protects businesses from legalProtects businesses from legal
liability if someone if injured whileliability if someone if injured while
using the productusing the product

43. 1. Brand Label – gives brand name and
trademark or logo
2. Descriptive Label – give information
about product use, construction, care,
performance, and other features
3. Grade Label – states the quality of a
product