LESSON 5: PRODUCT LIFE CYCLE
Decline
● Represent a series of stages that
product similar to people go through
over the cause of their lives.
- (Alanis Business Academy,
2012)
● Is the cycle which every product
goes through from when it was first
thought of until it finally removed
from the market.
- (Digital E-learning, 2019)
Basic of the Product Life Cycle
1. Introduction
● In this phase the product is
introduced in the market.
● The timing of introduction is
critical decision since it may
involve the phasing out of
another product from the
market or the product being
introduced is designed to
counter a competitors
product and the right timing
is an important
consideration for success.
2. Growth
● In this stage the product is
advertised vigorously by the
company and grows rapidly
in sales with more and more
customers coming to know
about it and beginning to try
it.
3. Maturity
● More and more competitors
enter the market with similar
products
● Sales begin to slow down
ex. Monopolistics Competition
4.
● Growth in sales of the product
begins to slow down and plateau.
Example of Product
1. Bar Soap
● Lifebuoy Soap - Total
● Lifebuoy Soap - Cool Fresh
2. Liquid Soap
● Lifebuoy - Mild Care
Types of Customers at Different Stages
1. Innovators
● Usually the younger in age
● Belong to the highest social class
(high income)
● Financially they are sound and have
significant surplus
● Are very social and keep a breast
with the latest products and
innovations.
2. Early adopters
● Typically younger in age
● Have a high social status
● Advanced Education
● Are also financially sound and have
surplus and they are more socially
forward that late adopters.
3. Early Majority
● Above average social status
● They are influenced by the early
adopters and are usually in contact
with them
● This category also influences the
opinion of other categories of
adopters through to a lesser extent
4. Late Majority
● Generally suspicious of an
innovation or new product
● Belong to a below average social
status
● They do not have very much
financial surplus
● They are in contact with others in
late majority and early majority
5. Laggards
● Dislike for change
● Older in age
● Focused on traditions
● Lowest social status and lowest
financial surplus
Stages at Different Stages
1. Introduction
High Promotion Low Promotion

Rapid Skimming Slow Skimming

Rapid Penetration Slow Penetration

2. Growth Stage
● Improving product quality
● Adding new product features or
support services to grow market
share
● Enter new market segment
3. Maturity Stage
● To do nothing
● Market Modification
● Product Modification
● Marketing Mix Modification (Product,
Price, Place, Promotion)
4. Decline Stage
● Reduce promotional expenditure on
the product
● Continue with the original product
● Continue product with improvement
● Drop the product

Understanding the Product Life Cycle allows

managers to understand that a product may
use prematurely if they are not able to
undertake key actions at the right time.

3 C’s types of Customers

1. Core product
● Satisfaction - Repetitive,
Purchase/ Consumption
2. Competitive Advantage - Support
services
3. Convenience - ambiance