Product Life Cycle

BBA- IV
By
Dr. Dilip Kumar

Disclaimer: This PPT is the property of the ICFAI University, Jharkhand and can be used only for the educational purpose of the students of the University
Content Details

Product life Cycle

Learning Objectives

After this session the learner will be able to:

Explain about the outline of the product life cycle
1

Understand about the different phase of product

2
life cycle and its functions
Product Life-Cycle (PLC)

Product life cycle (PLC) is the course that a product sales profits take over its
lifetime

It shows the stages that products go through from development decline from the
market
Why PLC?

PLC determine revenue earned

Contributes to strategic marketing planning

Helps the firm to identify when a product needs support, redesign,

withdrawal etc.

Help in planning for the new product development

Helps in forecasting and managing cash flow

The Phase of the PLC

Product development

Introduction/Launch

Growth

Maturity

Decline
Phase I: Product Development

News ideas

Market survey – is it required? Can it be produced at a profit?

Product development and refinement

Test Marketing

Analysis of the test marketing result

Preparation for launch, publicity, marketing campaign

Phase II: Introduction/Launch

Introduction of the product into the market

It may be new product or old product to the market

Demand is low

High cost/low sales

Advertisement and promotion

Monitor initial sales

Phase III: Growth

This period is the time improve efficiency and product availability as well as
services

Cost efficiency, time to market, pricing and discount policies are the major
factors in gaining customers confidence

Increased consumers awareness

Sales growth rate increase because of limited or no competition

Revenue increase
Phase IV: Maturity

This period is the period of the highest returns from the products

Sales reach peak

Marketing cost of the products declines

Ratio of revenue to cost high

Competition likely to be greater

Monitor market change /new strategies

Maturity Phase
Phase V: Decline

Competitors enter the market with

--- Better product feature

--- Advanced technology

--- Reduced prices

Sales start declining

Marketing cost of product rises

Decision to withdraw may be dependent on availability of new products and whether

fashions / trends will come around again
Summary

1 It gives brief knowledge about the products life cycle and

its different phases

2 It highlighted how forecasting help in products life cycle

and its role in revenue generation
Thank You