PRODUCT LIFE CYCLE &

MARKETING STRATEGY
 Demand for products

What is the demand for these products in 2013

compared to 1990?
???
» Fixed phone, land-line
» Cell phones
» Umbrella
» Video cassette player
» Diabetes Insulin injections
 Why would demand change?

•New products meet needs better

» Nokia 3360 v/s Galaxy S7

• Technology changes
» Video conference v/s air travel

• Substitutes replace a product

» Telegrams v/s SMS, SMS v/s Mobile Chat

• Population moves to the next level

» Basic variant of a car to full loaded model
PLC Concept is Based on Four Premises

Profits from a product

Products have a vary at different stages
limited life. in the life cycle.

Product sales pass through Products require different

distinct stages, each with strategies at different
different marketing life cycle stages.
implications.
 Product Life-Cycle Strategies

PLC Stages • Begins when the

company develops a
• Product development new-product idea
• Introduction • Sales are zero
• Growth
• Investment costs are
• Maturity
high
• Decline
• Profits are negative
 Product Life-Cycle Strategies

• Slow sales growth – cell

PLC Stages phones 15 yrs back, Hybrid
cars today, Blu-Ray
technology, HD TV
• Product development • Intensive promotions,
• communications
Introduction
• Price uncertainty
• Growth • Uncertain competition
• Maturity reactions
• Decline • Uncertain consumer
responses
• Non-existent profits
• Negative cash flow
 Product Life-Cycle Strategies

PLC Stages • Rapid sales growth – cell

phones today, internet, LCD
• Product development TV
• Introduction • Market acceptance
• Growth • Price stabilization
• Maturity • Features stabilization
• Decline • Profits start coming in
• Brand building starts
• Competition starts building
 Product Life-Cycle Strategies

• Slow sales growth – Land

PLC Stages lines, 100cc motorbikes,
fountain pens
• Price reductions,
• Product development promotions
• Introduction • Features changes /
• Growth reductions / new
• Maturity • Profits go down
• Competitors introduce new
• Decline
products
• Brand sustainability is
imperative in
communication
 Product Life-Cycle Strategies

PLC Stages • Decline in sales – audio &

video cassette players,
• Product development pagers
• Introduction • New products meet
satisfaction
• Growth
• Profits erode
• Maturity
• Communication expenses
• Decline
are stopped
 Product life cycle
 Bringing a product back to life!!!!
 Making it into something new!!!!
 Top 100
 From Time Magazine
 Fromthe 40’s: Magic 8 ball, slinky and
bubble solution
My favorite toy growing up
 Target Market
 Consumer - Elementary students
 Customer - Parents
 Your assignment
 Split into: (31 students…)
7 teams of 4
 1 team of 3 (1st team to call this gets it)
 Go sit with your team
 Your Assignment
 Using a decade you are assigned you
will take a toy that is in the Decline
stage of product life cycle and
develop a birthday present that your
target market would want today.
 Requirements

 3 - 5 minute presentation due Thursday,

April 7th (powerpoint, Prezi)
 Design a new modern package. Must
include:
 New name, new and improved (with new aspect
listed) 10 pts.
 PPT/PRESENTATION
requirements
 LESS WORDS
 LOOK AT LAPTOP IN FRONT OF
YOU, BUT BEHIND YOU
 USE NOTECARDS OR NONE (NO
SHEETS OF PAPER, NO STARING
AT SCREEN)
 EYE CONTACT WITH CLASS
 Requirements
 Describe what makes your product
different from the original (new features
of the product). 5 pts
 Define your target market using
demographics, geographics,
psychographics. Why will today’s target
market like it? 8 pts
 What product is out available that is like
yours. 2 pts
 Are you advertising to consumer,
customer, or both AND WHY. 5 pts
 Requirements
 Make a new ad. 30-60 seconds long. 10
pts
 Show old advertisement & packaging, then
show the new packaging and ad
 Describe how you will reach your
customer/consumer. Be specific: 10 pts
 What shows? Why? (min 3)
 What social media platforms (min 2)
 What print media (min 2)
 Website to use
 Google Time top 100 toys complete
list
 FIRST COME FIRST SERVE