Why Product Life Cycle?

Products have limited life.

Product passes through different stages.

Profits rises and falls at each stage.

Different requirement at different stages in terms of

marketing, finance, HR strategies, or manufacturing.
Why Product Life Cycle?
Products have limited life.

Product passes through different stages.

Profits rises and falls at each stage.

Different requirement at different stages in terms of

marketing, finance, HR strategies, or manufacturing.
Why Product Life Cycle?
Products have limited life.

Product passes through different stages.

Profits rises and falls at each stage.

Different requirement at different stages in terms of

marketing, finance, HR strategies, or manufacturing.
Why Product Life Cycle?
Products have limited life.

Product passes through different stages.

Profits rises and falls at each stage.

Different requirement at different stages in terms of

marketing, finance, HR strategies, or manufacturing.
Stages Of Product Life Cycles
34 years
2 Years
37+ years
80+ Years
In Just 1 Year
Fashion Style Fads
Mr Kashyap
Product Life Cycle
Introduction Stage

“The product’s first appearance in the

marketplace, before any sales or profits
has been made”.

Customers first see or hear about the new product

which is being displayed.
Different Goals Associated with the introduction stage

Intensive Advertising – To make them aware

Free Samples of new Product – To show them Our product

Organisations can use Pricing techniques on Products – To reduce Competition

Promotions – To maximize sales

Some Products have a Long introduction period- To create hype and Demand.
Several characteristics are associated to this
stage-
• Sales are low
• Costs incurred such as promotion and
distribution are high
• The Production process is generally new
• Profits are negative or low
• Need to inform customers about the new
product
Some strategies that organizations make use of
during this stage are as follows:

• Create product awareness and encourage product

trial
• Introduce basic products
• Price skimming or price penetration
• Advertising and sales promotion to end-users and
dealers
• Build selective distribution outlets
 Last Question
To MR .
Kashyap !!

Pioneer Advantages
Or Second Mover ??
Most studies indicate the market pioneer
gains the greatest advantage-

All the above were market pioneers and developed sustained

market dominance
What are the sources of the pioneer’s advantage?

• Early users will recall the pioneer’s

brand name if the product satisfies
them.
• The pioneer’s brand also establishes
the attributes the product class should
possess.
• It normally aims at the middle of the
market and so captures more users.
• Customer inertia also plays a role.
But the advantage is not inevitable. Bowmar (hand calculators), Apple’s
Newton (personal digital assistant),Netscape (Web browser), Reynolds
(ballpoint pens), and Osborne (portable computers)
were market pioneers overtaken by later entrants. First movers also have to
watch out for
the “second-mover advantage.”
Thanks Mr Kashyap For
your Consultations and
making me poor again
Growth Stage
“The stage at which a product’s sales rise
rapidly and profits reach a peak, before
levelling off into maturity”
It is marked by rapid increase in sales and profits of the new
product

Customers start liking the product, willing to buy it and refer it

to their relatives, friends or colleagues.

A good example is the Blue Ray players, Smart watches etc

An organization can decide to either increase its market share
or increase its profitability, depending on its marketing
strategy.

The prices of the product do not normally

experience any changes in order to maximize earnings.
Organizations experience an increase in production and
economies of scale and also more competitors enter the
market.

The quality of the product is maintained and the organization

will tend to expand its product distribution across the country.
Some characteristics in this stage are as follows:

• Increase in sales
• Increase in profits
• Early adopters like and buy the product
• Increase in competition
Some strategies that organizations make use of during
this stage are as follows:
• Maintain or improve the quality of the product
• Additional features are added to the product
• New markets are targeted
• Lowering prices to attract more customers and establish market
share
• Mass media advertising to establish brand image
Challenges
Market share decreasing
Profits Starts to Decline
Marketing strategies of maturity stage

• MARKET MODIFICATION
• PRODUCT MODIFICATION
• MARKETING PROGRAM
• MODIFICATION
Reasons
• Technological advances
• Shifts in consumer tastes
• Increased domestic and foreign competitions
Technological advances
Shifts in consumer tastes
Increased domestic & foreign
competitions
 SLOW AND RAPID DECLINE

1.SLOW DECLINE
2.Rapid decline
SOME WITHDRAW AND SOME REMAIN
 MARKET STRATEGIES

1. ELEMINATING WEAK PRODUCTS

 2.HARVESTING AND DIVESTING

• HARVESTING
DIVESTING