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Presentation By: Majubi Khan. To: Ms. Preeti Mam.

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The product life cycle I an attempt to recognise distinct stages in sales history of the product. The product passes through 4 stages Introduction Growth Maturity Decline.

S shape curve is ideal state,& is hardly possible. Such diagram- stages, Sales curve and profit curve is possible only if following Assumptions are fulfilled. 1. Product competes its entire life cycle. 2. Duration of each stage is equal or fixed. 3. There is no re-introduction of the product. 4. Product passes through stages in chronological order. There is no by passing or overlapping of stages.

The product is introduced in the market. First time made available for purchase. Consumers are not aware of the product. A new product has to face the existing products. The sales remain limited. There is loss or negligible profit at initial stage.

This is the stage of market acceptance. Due to increased awareness product gets positive response from market. Seller shift his promotional attempt from try my brand to buy my Brand Company tries to develop effective distribution network. There is rise profit therefore competitors are attracted. Price may be reduced. Increases its selling & promotional efforts to educate and convince the market & meet competition. At the end sales tart to increasing at decreasing rate. Consequently profit starts to decline.

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Sales increases rapidly Company can earn maximum profit. Competitors enter the market due to attractive profit. Price is reduced to attract more customers. Distribution network is improved. Necessary changes are made in product to remove defects. Company enters the new segment & new channels are selected

This stage is marked with Slow down of sales with growth. Sales continue to rise but at decreasing rate. Competition is high Sales curve shows moving downward. It is just a reverse U During this stage for certain period sales remain stable. This level is called saturation. Profit also declines. Marketer faces challenges.

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Growth maturity:- Sales growth rate starts to decline. Stable maturity:- Sales remain stable Decline maturity:- Sales now starts to decline.

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Sales increases at decreasing rate. Profits decline. Marginal competitors leave the market. Customers retention is given more emphasis. Product, market, & marketing mix modification are undertaken.

Last stage of PLC. Sales starts declining rapidly. There is minimum profit or even little loss. This stage is faced only those who survive in maturity stage. Most product obsoletes as new product enter the market. All the products have to face the stage earlier or latter. Number of competitors withdraw from the market.

Those who remain in the market draw smaller segments, make minor changes in product & continue product making in profitable segments and channels. Marketing must try every possibility before dropping the product completely.

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Sales fall rapidly Profit falls more rapidly than sales. Product modification is adopted. Gradually resources are shifted to new products. Most of sellers withdraw from market. Promotional expenses are reduced to earn a little from profit.

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Marketing strategies for introduction stage:The pioneer Advantage:Inventor Product pioneer Market pioneer

Improve product quality and add new features & improved styling. Enter new market segments. Add new models and plans products. Increase distribution coverage and enter new distribution channel. Shift from product awareness to product preference advertisement. Lower prices to attract next layer of price sensitive buyers.

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Market Modification. Expand number of brand users by:Converting non users. Entering new market segments Winning competitors customers.

B. Convince current users to increase usage:1. Using the product on more occasions. 2. Using more of the product on each occasions. 3. Using the product in new ways.

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Quality improvement. Feature improvement.

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Prices Distribution Advertising Sales Personal selling Services.

Increase firms investment . Maintain the firms investment level until the uncertainties about the industry are resolved. 3. Decrease firms investments level by dropping unprofitable customer groups while simultaneously strength in lucrative niches. 4. Harvesting- calls for gathering reducing a product or bussiness costs while trying to maintain sales. 5. Divesting the business quickly by dispossing of its assets as advantageously as possible.
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