PLCproductlifecycle

i f e Slide 1
tL
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odu cle
Pr Cy
ppt slides created and Copyright by Prof. Tim Richardson www. witiger. com
i f e Slide 2
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Pr Cy PLC - Product Life Cycle
• The purpose of having a diagram is to

help you understand the changes, in the
revenue that is made, as you go
through the different stages of selling a
product, from the beginning, to the end.
i f e Slide 3
t L
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Pr Cy Stages in the Product Life Cycle
Introduction Growth Maturity Decline
Digital
cameras
Mini-disc
Electric cars
DVD
VR*
*= virtual reality The time at each stage varies

ppt slides created greatly www. witiger. com
and Copyright by Prof. Tim Richardson
i f e Slide 4
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Stages in the Product Life Cycle
o
Pr Cy
Introduction
The seller tries to stimulate demand
Promotion campaigns to get increase public awareness
Explain how the product is used,
• Features Advantages Benefits
You will lose money, but you expect to make profits in the
future
i f e Slide 5
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Stages in the Product Life Cycle
o
Pr Cy
Introduction
•Sales are low, and profits are below the line because your
costs are greater than the amount of money you make
•you have “negative” profit
•Need to spend a lot of money on promotion
i f e Slide 6
tL
c Stages in the Product Life Cycle
odu cle
Pr Cy
Growth
A lot is sold - The seller tries to sell as much as possible
Other competitor companies watch, and decide about
joining in with a competitor product
“success breeds imitation” (Text)
Growth will continue until too many competitors in the
market - and the market is saturated
i f e Slide 7
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Growth
•At the end of the growth stage, profits start to decline
when competition means you have to spend more money
on promotion to keep sales going.
•Spending money on promotion cuts into your profit
i f e Slide 8
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Pr Cy
Maturity
Many competitors have joined - the market is saturated
The only way to sell is to begin to lower the price - and
profits decrease
It is difficult to tell the different between products since
most have the same F.A.B. - Features, Advantages &
Benefits
Competition can get “Nasty” and commercials are intense
i f e Slide 9
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Maturity
“Persuasive Promotion” becomes more important during
this stage
That is to say, you have commercials almost begging the
customer to still buy your product because you still make it
just as good.
i f e Slide 10
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Decline
Newer products are now more attractive - even a low low
price does not make consumers want to buy.
Profit margin declines - and so the only way to make
money is to sell a high volume
i f e Slide 11
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Decline
To increase volume you try to
1. Increase the number of customers - get new customers
2. Increase the amount each customer uses g the
e n din ife
Ext duct L
Pro le
Cyc
i f e Slide 12
tL
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odu cle Extending the Product Life Cycle
Pr Cy
Market 1. Increase frequency of use

Modification by present customers
2. Add new users
3. Find new uses
Product 4. Change product quality or
Modification packaging
Purpose: to sell more product and cover original investment

i f e Slide 13
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Extending the product Cycle
• to prevent the product going into

decline you modify the market
MARKET MODIFICATION
Ex
• you look for new consumers by changing am
pl
the product so it has new users - and then es
fro
new customers (Baking soda, vinegar, m cla
ss
Q-tips, Avon Skin So Soft, vaseline
i f e Slide 14
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Pr Cy
• MARKET MODIFICATION
examples
Windex for cleaning jewelry
Javex bleach for toilets Ex
am
pl
Lemons for hair colouring es
fro
m
beer for hair cl
as
s
Bounce for in the garbage, gym bag etc.
i f e Slide 15
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Pr Cy
• to prevent the product going into

decline you modify the product
PRODUCT MODIFICATION
• adding new features, variations, model
varieties will change the consumer
ss
c la
reaction - create more demand
m
fro
• therefore you attract more users
es
pl
m
a
Ex
i f e Slide 16
t L
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Pr Cy
• PRODUCT MODIFICATION
• examples
• condoms - colours, features
• CD players
• chip flavours - many kinds
ss
c la
• flavoured tongue depressors
m
fro
• couples seats at movie theatre
es
pl
m
a
Ex
i f e Slide 17
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Pr Cy
• PRODUCT MODIFICATION
• examples continued
• digital sound at theatres
ss
c la
m
fro
es
pl
m
a
Ex
i f e Slide 18
t L
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odu cle Overlap of Life Cycle for Products A and B
Pr Cy
WINDOWS 3.1
WINDOWS 95
1991
ppt slides created 1995 by Prof. Tim1996
and Copyright Richardson 1997
www. witiger. com
i f e Slide 19
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Most people have a problems thinking

this theory is relevant because they
apply it to specific product brands - it
should be applied only to a general
product category
i f e Slide 20
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Length of Cycle Stages
• Products move through the cycle at different
speeds
• sometimes introduction is very long, or very
short, depending on how easy it is for the
public to understand the F.A.B.
• Not all products follow the same pattern
i f e Slide 21
tL
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Pr Cy Life Cycle Length
• Some products move very fast because

they are new and have no competition
so the intro stage is short, and they go
direct to growth stage.
i f e Slide 22
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Pr Cy Life Cycle Length
Because of
• technology and
• globalization
• the introduction stage is getting very short
• some cycles more quickly to maturity,
then have many product modifications so
the decline stage drags on and on
i f e Slide 23
tL
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Pr Cy Speed of the PLC
• Since the Intro Stage is getting shorter,
and sometimes the Growth Stage
doesn’t last too long (because
competitors move in) companies must
continually come up with new products
• You can tell when they are in the growth
stage because this is when they
introduce new model variations, and
some improvements to the product Page 340
i f e Slide 24
tL
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odu cle Alternative Product Life Cycles
Pr Cy
Pocket pagers
Tamagachi
Failures that do not go
through the 4 steps
i f e Slide 25
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Pr Cy
• Fashions - currently popular

products that tend to follow
recurring life cycles
eg. Wide lapels, 3 button suits, high
heels vs. wedge heel
• “the currently acceptable style” p. 265
i f e Slide 26
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• Fads - Fashions with abbreviated life

cycles - only popular with certain
groups
• - music
• - fast food
• - children’s toys Page 265
• - “adult toys”
i f e Slide 27
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Eg. Watches w red LCD
Page 188
i f e Slide 28
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Product Life Cycle Considerations in
Marketing Strategy
• Understand that profits have a predictable
pattern
• in the early stages, focus is on product
information
• in the later stages, focus is on brand
promotion
• use market segmentation in maturity stage to
maintain strong core customer basis
Page 188
i f e Slide 29
t L
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odu cle
Pr Cy Stages in the Product Life Cycle
Digital
cameras
Mini-disc
Electric cars
Monopoly Monopolistic Oligopoly Pure Competition
*= virtual reality The time at each stage varies

ppt slides created greatly www. witiger. com
and Copyright by Prof. Tim Richardson

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i f e Slide 1

• The purpose of having a diagram is to

Introduction Growth Maturity Decline

*= virtual reality The time at each stage varies

Introduction Growth Maturity Decline

Introduction Growth Maturity Decline

Introduction Growth Maturity Decline

Introduction Growth Maturity Decline

Introduction Growth Maturity Decline

Introduction Growth Maturity Decline

Introduction Growth Maturity Decline

Introduction Growth Maturity Decline

Market 1. Increase frequency of use

Purpose: to sell more product and cover original investment

• to prevent the product going into

• to prevent the product going into

Most people have a problems thinking

• Some products move very fast because

• Fashions - currently popular

• “the currently acceptable style” p. 265

• Fads - Fashions with abbreviated life

Eg. Watches w red LCD

Introduction Growth Maturity Decline

Monopoly Monopolistic Oligopoly Pure Competition

*= virtual reality The time at each stage varies

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