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The Product Life Cycle

The Product Life Cycle

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Published by Cerlin Pajila

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Published by: Cerlin Pajila on Sep 26, 2012
Copyright:Attribution Non-commercial


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•Introduction •Growth •Maturity •Decline

 The Product is first launched  Profits are negative or low  Sales are very low  Promotion spending is relatively high  The company might adopt one of several marketing strategies  Awareness in market is low  Cost of marketing is high

Maturity stage of the PLC: Modifying the market: o Increase the consumption of the current Product How    Look for new users and market segments Reposition the brand to appeal to larger or faster growing segment Look for ways to increase usage among present customer o Modifying the marketing mix improving sales by changing one or more marketing mix elements .Growth:  The product has given satisfaction to the first buyers  Sales increase quickly  The product starts produce profit  New competitors will enter into the market  The firm uses several strategies in product features and models  Spending a lot of money on product improvement promotion and distributions  New buyer appear Maturity:  The Sales are peak  Low cost per customer  Profit is high  Marketing objectives is maximize profits while depending market share  Product diversify brand and models  Price is match or best competitors.

 Rate of market acceptance.  Protection by patent.How    Cut prices launch a better advertisement campaign Move into larger market channels Offer new or improved services to buyer. Product life cycle applications:      Product class has the longest life cycle(eg: gas) Product form tends to have the standard PLC(eg: dial telephone) Brand can change quickly because of changing competitive attaches and responses.  Economic and managerial forces.(eg: tide) Style is a basic distinctive mode of expression(eg: formal clothing) Fashion is a product style in a given field(eg: business casual) .  Risk bearing capacity. Factors affecting the life cycle of a product:  Rate of technical changes.  Easy to competitive entry. Decline:  Sales start declining buyers go for better products  The product cannot stand in the market  Many firms withdraw their product from the market when sales and profit are decrease  Price become a competitive weapon  In this stage firms shift their attention to other products.

CONCLUSION  Products have a limited life. Strategy is both a cause and result of the PLC.Practical problems of PLC: Hard to identify which stage of the PLC Hard to pinpoint when the product moves to next stage. competitors change over the product life cycle.  A company’s positioning and differentiation strategy must change as the product. market. Hard to identify factors that affect product movement. . length of stage and shape of PLC. Hard to forecast sales level.

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