IMPORTANCE OF

PRODUCT LIFE CYCLE

(4)
COMPANIES WILL HAVE ENOUGH TIME
TO THINK OF POSSIBLE PRODUCT
REPLACEMENT OR ENHANCEMENT
FOR THOSE PRODUCTS THAT HAVE
REACHED THE DECLINE STAGE.
2. COMPANIES WILL CONTINOUSLY
THINK OF A STRATEGY TO
BETTER SERVE ITS MARKET AND
PREVENT A PRODUCT TO
ADVANCE TOWARD THE
DECLINE STAGE
3. COMPANIES WILL BECOME AWARE
THAT THE SALES AND PROFIT DIFFER
IN VARIOUS STAGES.
4. VARIOUS DEPARTMENTS IN THE
COMPANY NEED TO BE MADE AWARE
OF THE LOCATION OF THE
COMPANIES’ PRODUCT/S IN THE PLC,
AS WELL AS ON HOW TO
SUCCESSFULLY ADAPT MARKETING
STRATEGIES AT EACH STAGE OF THE
PRODUCT LIFE CYCLE
STRATEGIES INTRODUCTION GROWTH MATURITY DECLINE
PRODUCT Offer a basic product Offer product Diversity brand and Phase out weak
extension, service models items
warranty

PRICE Use cost-plus pricing Price to penetrate Price to match or Cut price
market beat competitors

DISTRIBUTION Build selective distribution Build intensive Build more intensive Go selective, phase
PRODUCT distribution distribution out unprofitable
LIFE CYCLE outlets

STRATEGIES
ADVERTISING Build product awareness Build awareness and Stress brand Reduce to level
among early adopters and interest in the mass differences and needed to retain
dealers market benefits hardcore loyals

SALES PROMOTION Use heavy sales promotion Reduce to take Increase to Reduce to minimal
to entice trial advantage of heavy encourage brand level
consumer demand switching
 PRODUCT
KNOWLEDGE
involves knowing
KNOWING product features, its
competitive
THE advantage, its usage,
PRODUCT price benefits, and
how the product will
satisfy a market
need.
CHARACTERISTICS
OF SERVICE
(4)
All burgers of a particular flavor at McDonald’s
are almost identical.
QUALITY However,
VARIABILITY-the same is not
true of the service
there rendered
is a variationby the same
or difference counter
as to
time and place a service
staff consecutively to two customers. is offered, the
person providing the service, and how it
is given
 A customer dissatisfied
PERISHABLE- with
the services of aUnlike
barber cannot
tangible consumer products, it
cannot be
return the service of thestored for future use.
Services cannot be stored, saved, returned
haircut that wasor rendered to have been used. Once
resold once they
him. At the most he to
rendered may
a customer the service is
completely consumed and cannot be
decide not to visit that
delivered to another customer
particular barber in the future.
INSEPARABILITY- The
service provider cannot
be isolated from service,
because service provider
cannot is a part of service
 4. INTANGABILITY-
It cannot
A costumer who avails be touched,
the service
tasted,
of a facial treatment or experienced.
will not be A
consumer
able to see the result unlessmust first avail
the service
he/she undergoes the process before
experiencing it.