Product Class

• A product class is a group of

similar products which can somewhat substitute
each other. The products in the same class have
similar features and functions and are catered to the
same demographic consumer. E.g. of Product class
are:
• Transport: All products and services that transport
passengers such as car, bicycle, car and Aeroplane.
• Hospitality: All services that hosts guests such as
hotels, rest houses, theme parks and restaruants

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Product Form
• Example of product form can be hybrid cars. They
solve the basic utility that is personal motorized
transportation
• Example of Product form can be typewriters. They
solve the basic utility that is typing on papers
• Example of Product form can be franking machines.
They solve the basic utility that is tickets on
envelops.
• Example of Product form can be mobile phones
mainly used for communication and socializing

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Brand
• A brand is a name, term, design, symbol or any other
feature that identifies one seller's good or service as
distinct from those of other sellers. Brands are used
in business, marketing, and advertising.
• E.g. Shan Masla, National Foods, Youngs Foods etc
•

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Product Life-Cycle Strategies
Product life-cycle (PLC) can describe a product
class, a product form, or a brand
• Product classes have the longest life cycles, with sales
of many product classes in the mature stage for a long
time.
• Product forms have the standard PLC shape:
introduction, rapid growth, maturity, and decline.
• Brands have changing PLCs due to competitive threats.

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Product Life-Cycle Strategies
• Product life-cycle (PLC) is the course that a
product’s sales and profits take over its lifetime.
• Product development
• Introduction
• Growth
• Maturity
• Decline

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Product Life-Cycle Strategies

Sales and profits over the product’s life from inception to decline
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The Diffusion Process
Early Late
Innovators Early Adopters Laggards
Majority Majority

"The Chasm"

Technology Adoption Process

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Brand Life Cycle

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Product Life-Cycle Strategies
Introduction stage is when the new product is
first launched.
• Takes time
• Slow sales growth
• Little or no profit
• High distribution and promotion expense
• Pioneer advantage

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Long range Product Market Expansion strategy
of Pioneer

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Product Life-Cycle Strategies
Growth stage is when the new product satisfies
the market.
• Sales increase
• New competitors enter
the market
• Price stability or decline
to increase volume
• Consumer education
• Profits increase
• Promotion and
manufacturing costs gain
economies of scale
• Product quality increases
• New features
• New market segments
and distribution channels
are entered
• Shifts from awareness
and trial comm. to
preference and loyalty
comm.
• Lowers prices to attract
the next layer of price
sensitive buyers 9-12
Product Life-Cycle Strategies
Maturity stage is a long-lasting stage of a product that has
gained consumer acceptance.
• Slowdown in sales
• Many suppliers
• Substitute products
• Overcapacity leads to competition
• Increased promotion and R&D to support sales and profits.
Marketers consider modifying strategies at the maturity stage
• Market modifying
• Product modifying
• Marketing mix modifying

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Product Life-Cycle Strategies
• Market modifying is when a company tries to increase
consumption of the current product (New users; Increase
usage of existing users; New market segments)

Expand the number of Increase the usage rate

users among users
Convert nonusers: Tell Have consumer use the
benefits and convert them product on more occasions
Enter new market Have consumers use more
segments: Try to make your of the product on each
products in LMT’s and MT occasion. E.g. Five glass of
water every day
Attract competitor’s Have consumers use the
customers product in new ways

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Product Life Cycle Strategies
• Product modifying is changing characteristics (quality,
features, or style) to attract new users and to inspire more
usage.
• Marketing mix modifying is when a company changes
one or more of the marketing mix elements.
• Price
• Promotion
• Distribution channels

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Product Life-Cycle Strategies
• Decline stage is when sales decline or level off for an
extended time, creating a weak product.
• Maintain the product without change in the hope that
competitors leave the industry
• Reposition or reformulate the product in hopes of moving
back into the growth stage
• Harvest the product that means reducing various costs and
hoping that sales hold up
• Drop the product by selling it to another firm or simply
liquidate it at salvage value

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Product Life-Cycle Strategies
Product life-cycle (PLC) can also be applied to styles,
fashions and fads
• Style is a basic and distinctive mode of expression appearing in a
field of human endeavor. It appears in clothing, construction, and art.
A style can last for generations and go in and out of vogue.

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Product Life Cycle
• Fashion is a currently accepted popular style in a given field. Pass
through four stages distinctiveness, emulation, mass fashion and
decline. Length of fashion cycle is hard to predict. Fashion ends
because
• It represents a compromise and consumer start looking for missing
attributes
• Too many consumers adopt the fashion thus turning others way
• Length of a fashion cycle depends on the extent to which the fashion
meets genuine need, is consistent with societal trends, satisfies
social norms and is within technological limits

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Product Life-Cycle Strategies

Fads are temporary periods of unusually high sales driven by consumer

enthusiasm and immediate product or brand popularity. E.g are Rubix cube,
Yo-yo game.

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Some Product life cycle patterns
• Growth Slump maturity pattern: Sales grow, and then
fall to petrified level. - Example: Small kitchen
appliances like hand held mixers and bread makers.
• Cycle-Recycle Pattern: - Sales grow, then
decreases. - Company gives another promotion
push for another smaller growths. - Example:
Pharmaceutical products.
• Scalloped Pattern: - Sales pass through a series of
PLC’s due to discovery of new uses/characteristics. -
Example: Nylon, pet bottles

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Additional Product and Service
Considerations
Product Decisions and Social Responsibility
• Public policy and regulations regarding developing
and dropping products, patent protection, product
quality and safety, and product warranties.
International Product and Service Marketing
• Determining what products and services to introduce
in which countries
• Standardization versus customization
• Packaging and labeling
• Customs, values, laws
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