MARKETING

MANAGEMENT
ASSIGNMENT
PRESENTED TO - DAMYANTI
SODHA
 PRODUCT LIFE
CYCLE (PLC)
IN THE WORDS OF KOLLAT,
BLACKWELL AND ROBESON PLC IS
DEFINED AS, “GENERALISED MODEL
OF SALES AND PROFITS TRENDS FOR A
CLASS OR CATEGORY OVER A PERIOD
OF TIME”.
 PRODUCT
PRODUCTLIFE
LIFE
CYCLE
CYCLE
STAGES OF FACTORS
PLC AFFECTING PLC
INTRODUCTION

GROWTH ADVANTAGES OF
PLC
MATURITY
LIMITATION OF
DECLINE PLC
STAGES
OF PLC
 STAGE
After completion of test
marketing and modifying
the product a marketing
company introduces the
product in the market.
Characteristics :-
● no profits or marginal
profits,
● limited sales of the product
STRATEGIES FOLLOWED
● Marketing objective -
Create awareness and trial
● Product - To be innovative
● Price - To be high
● Distribution is to be
selective
● Promotion - High budget
on advertising & sales
promotion
 2. GROWTH
STAGE
Introduction stage expires, the ● Marketing objective
next stage is growth stage. It
is a period of rapid growth.
Sales increases as more
customers get aware of the
product.
Characteristics :-
● rapid increase in sales and
acceptance of product,
STRATEGIES FOLLOWED
-Market share per customer
● Product - Offer product
extension, warranties
● Price - To penetrate market
● Distribution - Build
intensive distribution
● Promotion - Awareness in
mass market, brand
 STAGE
STRATEGIES FOLLOWED
The maturity stage is the stage ●
Marketing objective - To
when stable trend in sales
maximise profits, defend
prevails till mid of the stage.
market share
Decreased market share or ● Product - Diversify brands an
prices due to competition.
models, develop new product
uses
Characteristics :- ● Price - Match the competitors
● reasonable sales,
● Distribution - More reasonab
● marginal profits
distribution
 STAGE
STRATEGIES
This is the last phase of life
FOLLOWED
cycle of a product. In this
● Marketing objective -
stage sales begin to decline as
Reduce costs of the
market becomes more
brand-product
saturated and the product
● Price - Cut down price
becomes obsolete in many
● Distribution - Strong
aspects.
sales outlets are
maintained
Characteristics :-
● Promotion - Spending
● decline in sales at fast
 FACTORS AFFECTING PRODUCT
LIFE CYCLE
There are no. of factors affecting the length of PLC,
they are :-
● Legal protection to the product - If the company’s
product is having legal protection like Patents, then
the length of PLC will
be greater.
● Chances of entry of competitors - The entry of the
competitors will result in short length of PLC. If the
entry of competitors is grim the PLC is greater.
 ADVANTAGES OF PRODUCT LIFE
CYCLE
Product life cycle is used by organizations to understand
the performance of the product. It has some advantages.
● Marketing target and positioning - Plc provides the
target audience and helps establishing the image of
the product.
● Competitive advantage - Analyzing the life of a
product in the market and framing the strategies
accordingly, helps the company to face the
competition.
 LIMITATIONS OF PRODUCT LIFE
CYCLE
The product life cycle concept is a valuable tool that is
used for analysis and interpretation of the market
dynamics.
But it does come with some limitations :-
● The product life cycle is a theoretical concept and
difficult to implement in real life in relation to a
specific product.
● The life cycle patterns for various products differ to
a large extent and a generalization is not possible.
THANK YOU