The Product Life Cycle

It shows the life stages of a product.

There are four stages in any product life cycle:
1. Introduction
2. Growth
3. Maturity

Sales & Profit

4. Decline

Marketing mix at different stages

At Introductory Stage:
Increase and to spend lot on promotion and
physical distribution.

 Growth stage:
As competition increased so needed to improve
product. Increased promotion
At Maturity Stage:
To sustain the sales improvements in product and
promotion are required.
Redesigning product mix.
At Decline stage:

Redesign product
Extra promotional efforts.
Sometimes price can be reduce but it is dangerous.
Improve product quality
Penetrate new market segments
Expand number of distribution channels
New Product Development Strategy

There are following stages in new product development:

1. Idea Generation
2. Screening of Ideas
3. Concept Testing
4. Product Designing and Evaluation
5. Product Testing
6. Product Launching
Detail is given below:
1. Generation of New Product Idea
From following sources ideas could be generated:
a. Customers
b. Company salesman
c. Competitors

d.
e.
f.
g.

Company executives
Employees
Salesmen
Brainstorming:

2. Evaluation and screening of ideas

Ideas should be in consistent with the company mission and
objectives
Ideas can be screened in terms of :
a. Profitability
b. Market potential
c. Production facility
d. Availability of raw material
e. Availability of managerial ability
f. Uniqueness of product
3. Product Concept Development:
Concept must be tested thoroughly
4. Product Designing and evaluation:
a) Engineering and production or R& D stage
b) Prototypes are designed
c) Test could be in laboratory or in field.
5. Product Testing stage
The product can be tested on following requirements:
a) Performance
b) Acceptance
c) Economical production
d) Adequate distribution
e) Effective packaging and branding
f) Servicing
6. Launching the new product
a. Upon the testing result the product is finally launched.
b. The launching decision should be weighed in terms of
possible markets, costs involved and profits.
c. Timing is also important.