The document discusses the product life cycle and appropriate marketing strategies at each stage. It identifies four stages: introduction, growth, maturity, and decline. In the introduction stage, sales are slow and profits non-existent. Marketing strategies focus on building awareness, using cost-plus pricing, and conducting trials. In the growth stage, rapid market acceptance and substantial profits occur, and strategies shift to penetrating pricing, product extensions, and intensive distribution. During maturity, sales growth slows as competition increases and profits stabilize or decline, so strategies diversify brands and items, match competitors' prices, and encourage brand switching through emphasizing differences. Finally, in decline, sales drift downward and profits erode, so strategies phase out weak products and un

1. Competitive Dynamics
What Marketing Strategies are
appropriate at each stage of the
Product Life Cycle?

3. Product passes through different stages
Products have limited Life

6. Other PLC
Style Fashion Fad

7. Product Life Cycle Curve
Stages of

8. Introduction
• Slow sales growth
• Profits non-existent
STAGE
1

9. • Build product awareness
• Use cost-plus basis
• Conduct trials among early adopters
• Build selective Distribution
Marketing Strategy

10. Growth
• Rapid market acceptance
• Substantial Profits
STAGE
2

11. • Penetrating price Policy
• Offer Product extension and services
• Build intensive distribution
• Build awareness in mass market
Marketing Strategy

12. Maturity
• Slowdown in sales growth
• Increased competition
• Profits stabilizes or Declines
STAGE
3

13. • Diversify brand and items
• Price to match best competitor
• Build more intensive distribution
• Encourage brand switching
• Stress Brand Differences and benefits
Marketing Strategy

14. Decline
• Sales show downward drift
• Profit erodes
STAGE
4

15. • Phase out weak products
• Cut prices
• Phase out unprofitable outlets
Marketing Strategy

16. Introduction
Growth
Maturity
Decline

17. Introduction
Growth
Maturity
Decline

20. These slides were created by Archit Raj, IIT
Delhi, during a Marketing internship by Prof.
Sameer Mathur, IIM Lucknow
(See www.IIMInternship.com )