[Module2]

UNIT 2
PRODUCT LIFE
CYCL
E
UNIT II. PRODUCT LIFE CYCLE

Course Outcome:
In this unit, you will be able to evaluate the handling of a good as it moves
through the typical stages of its product life: development and introduction, growth,
maturity/stability, and decline. This handling involves both the manufacturing of the
good and the marketing of it. The concept of product life cycle helps inform business
decision-making, from pricing and promotion to expansion or cost-cutting. 1
The product life cycle (PLC) describes the life of a product in the market with
respect to business/commercial costs and sales measures. It proceeds through
multiple phases, involves many professional disciplines and requires a multitude of
skills, tools and processes.
This is not to say that product lives cannot be extended – there are many
good examples of this – but rather, each product has a ‘natural’ life through which it
is expected to pass.

1
Retrieved from
Product Life Cycle Management.investopedia.com

COURSE PRE-ASSESSMENT
Instructions: Answer the question open-mindedly. Students must use ball pen to
answer this assessment. Any MARKS OF ERASURE will NOT be accepted by the
instructor.
1. Write down 10 products that gone through a lot of changes over time.
2. What do you think makes them changed through the years?

ANSWER:
1. Toblerone
2. • Coca-cola
3. • Nutella
4. • Nescafe coffee
5. • Colgate
6. • Snickers
7. • Cellphones
8. • Computers
9. • Television
10. • Came
2. Change is a constant thing in the world. Product changes through the
years, for their product will have a new structure in the perspective of
customers. as a result, people are more enticed to buy such a product.

KEY TERMS

• Product Life Cycle (PLC) –which all products go through the different stages
such as Introductory, Growth, Maturity, and Decline.

• Subject Expert –always in the introductory stage. Getting to product-market

fit. Adapting rapidly to new insights from the customers to the market.
• Growth Hacker –always in the growth stage. Supporting more users while
optimizing to accelerate growth.

• Retention Strategist –always in the maturity stage. Sustaining market share.

Evolving value proposition while focusing on customer satisfaction and
delight.
• Solution Seeker –always in the decline stage. Determining the best outcome.
Thinking strategically about pivoting, resurrecting current offering or phasing
out.
Lesson 1. ALL ABOUT PRODUCT LIFE CYCLE.
Learning Outcome:
At the end of this lesson, you will be able to:
1. Identify the rationale behind the marketing concept of product life cycles.
There are various kinds of products in the market and each product has its own life cycle.
let's follow the product life cycle of the typewriter:

1.
Development: Before the first commercial typewriter was introduced to the market, the
overall idea had been developed for centuries, beginning in 1575.
2.
Introduction: In the late 1800s, the first commercial typewriters were introduced.
3.
Growth: The typewriter became a quickly indispensable tool for all forms of writing,
becoming widely used in offices, businesses, and private homes.
4.
Maturity: Typewriters were in the maturity phase for nearly 80 years, because this was the
preferred product for typing communications up until the 1980s.
5.
Saturation: During the saturation stage, typewriters began to face fierce competition with
computers in the 1990s.
6.
Decline: Overall, the typewriter couldn't withstand the competition of new emerging
technologies and eventually the product was discontinued.

2
 According to a new study of Rebecca Riserbato –a Junior Staff Writer for the
HubSpot Marketing, Sales, and Service Blogs, Product Life Cycle (PLC) has six (6) stages
which she originally published on Jan 15, 2020 7:00:00 AM, updated January 15 2020 in her
post entitled, The 6 stages of Product Life Cycle. Basically, we use 4 stages: Introductory,
Growth, Maturity and Decline. Some, uses 5 stages adding in the beginning the
Development Stage. The example, PLC of Typewriter was analyzed using 6 stages. Well,
you don’t have to worry about whether you will utilize 6 or 5 or 4 stages of Product Life Cycle
as long as you understand its real purpose that will help you assess what strategy to use in
every stage.

2
Retrieved from
https://blog.hubspot.com/marketing/product-life-cycle

ACTIVITY.

“Watch the product life cycle; but more important, watch the market life cycle!”
-Philip Kotler
BUZZ THINK TIME!
Activity 2.1.1. The life cycle of any product always carries it from its introduction to an
inevitable decline, but what does this cycle practically look like. Tell us what’s the oldest
gadget or product you own or knew. Analyze its product life cycle using the 4 stages.

Your answer:

Introduction: Throughout the 90s

and early 2000s, Nokia's line-up of straightforward mobile phones were loved by
millions and made the Finnish telecoms company synonymous with class-leading
mobile technology.

Growth: 1996 saw the first of Nokia's 'smart' phones in the form of the 9000s
communicator series that featured a data modem, internet access, email and more
thanks to the built-in QWERTY keyboard and large 640 x 200 resolution screen.

Maturity: That changed in 2007 with the introduction of the iPhone that you just
watched. The iPhone introduced an accurate, inexpensive, multi-touch screen.

DECLINE: (2012-present) yet mobile phones and accessories increased per year
by 64%.
3
3
Retrieved from
https://is.muni.cz/el/1456/jaro2011/BPH_PIS1/Boston_matrix_UK.pdf

Understanding Product Life Cycle Curves

Example:

Facebook is in the mature phase of the product life cycle. Once it became the norm for everyone to
have a Facebook account, the growth stage passed. No new or obsoleting technology is expected to appear soon
which would put Facebook out of business. While Facebook competes with other social media sites like
Google+ and Twitter, it appears to be holding its own. Thus, we can say that Facebook is comfortably in the
maturity stage.
4

However, not all products need to face the decline stage.

Companies can extend the product life cycle with new iterations
and stay afloat
4
Retrieved from

61
a longtime professor of marketing at Harvard Business School in Boston, is now professor emeritus. His most recent books are Thinking About Management (1990) and The Marketing Imagination
(1983), both from Free Press

as long as they have several products at various points of the product

life cycle.
Whether you're developing a brand new product or working with a
mature, well-established brand, you can use the product life cycle
stages as a guide for your marketing campaigns.
ANALYSIS

BUZZ PROGRESS!
Activity 2.1.2. TEST

MULTIPLE CHOICE.
I.

4. The process by which products emerge, grow, stabilize and decline over time.
A. Define product life cycle
B. What is the growth stage?

C. What is the decline stage?What is the maturity stage?

5. Fully established product is faced with D. competition from each other contenders for

share of the market. Maybe forced to cut prices which result in profit loss.
A. Growth stage
B. Product life cycle
C. Decline stage
D. Maturity stage
6. Think of an idea for market research, analyze the data find finance for product find out if
product can be produced/technically possible, produce a prototype test market change product if
necessary advertise the product for launch.
A. Development and Research stage
B. Introduction stage
C. Development and Research involve
D. Extend the product life cycle

7. Growth is slow and sales are low because of limited consumer awareness of the product.
May be difficult for business to persuade consumers to switch brand loyalties. There is high costs
for holding stocks and advertising. → What is the decline stage ? A. TRUE
B. FALSE
8. Changing or modifying the product formulation new variants changing the product to
appeal to a different market. altering the channels of distribution changing prices promotion and
advertising → In what way could you extend the product life cycle ? A. TRUE
B. FALSE
9. Consumers become aware of the product, sales increase. Little competition on the market
and product earns highest unit profits. → What is the decline stage ?

A. TRUE B. FALSE

10. All products need to face the decline stage.

A. TRUE
B. FALSE

TEST II. Below are lists of products that we used to encounter in the market.
Evaluate and identify what particular product life cycle stage they are in. Why you
think so?

1. Nokia 3310
2. Filmed Camera
3. Encyclopedia (bulky books)
Your answer:
TEST I
1.B
2.A
3.C
4.A
5.C
6.A
7.A
8.A
9.B
10.A
TEST II
1. Decline
2. Growth and Competitive Turbulence
3. Saturation
ABSTRACTION.

BUZZ EXPLORE!

Activity 2.1.3. Why we need to strategize in every stages of product life cycle?

Your answer:
It is important to strategize every stages of product life cycle, for us to ensure the success
of a product.

(you can use the back portion of this page)

5

5 Retrieved from https://www.socialmediatoday.com/news/tiktok -

pledges-10-million-to-world-health-organizations-covid-19-response/574713/
6

6
Retrieved from
https://www.socialmediatoday.com/news/tiktok -pledges-10-million-to-world-health-organizations-covid-19-response/574713/
Application.

BUZZ WOW!

Activity 2.1.4.

What do you think, what TIKTOK just did? What PLC Stage is tiktok right now?
Why did they have done much donations?

Your answer:
Tiktok has a positive impact on the neighborhood, not just for the people but also
for the environment, society. They spread positive energy while also assisting
thousands of individuals. In PLC stage performs a variety of functions. Tiktok is a
social media platform that was created in the midst of the pandemic and has made
numerous donations in order to assist the Global Health Community.
 (you can use the back portion of this page)

Summary

Key Takeaways
• The goal of product lifecycle marketing is not to match the curve but to outline what
may work best now and plan for the future.
• Product lifecycle management (PLM) refers to the handling of a good as it moves
through the typical stages of its lifespan: development/introduction, growth, maturity,
and decline.
• PLM involves both the manufacturing of the good and the marketing of it.
• PLM's main benefits include shortening product development times, knowing when to
ramp up or reduce manufacturing efforts, and how to focus marketing efforts.

Suggested Readings

Academic Writing. Source essay writing services. Product Life Cycle of

Smartphones. Retrieved from https://sourceessay.com/product-life-cycle-of-
smartphones/ Accessed on August 8, 2020.

Gleason, Derek. Product Life Cycle Marketing: What Matters Most at Every Stage.
Published Feb. 6, 2019. Last Updated July 17, 2020. Retrieved from
https://cxl.com/blog/product-lifecycle-marketing/ Accessed on August 8, 2020.

Open text BCcampus. The Product Life Cycle. Introduction to business. Retrieved f
rom https://opentextbc.ca/businessopenstax/chapter/the-product-life-cycle/
Accessed on August 8, 2020.