product life cycle

1. Product Life Cycle
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2. Product Life Cycle
 Def- Begins where a new product
development ends. Product life cycle is the
status of a product on time scale from
introduction to end in terms of its sales &
profits.
 A standard plc is explained as a bell
shaped curve.
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3. Stages of Product Life Cycle
 Product development
 Introduction
 Growth
 Maturity
 Saturation
 Decline
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4. Product Development
 Begins when the company finds &
develops a new product idea. During
product development, sales are zero and
the company’s investment costs add up.
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5. Introduction
 This stage is when a product is first
offered in the market, it includes the
following stages:
2. Product not known to buyers, sales low
3. Initial costs high
4. Absence of Competition
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6. Introduction (contd)
Specific marketing strategies are developed
it includes:
 Product related
 Price related
 Place related
 Promotion related
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7. Marketing strategies for
Introduction (contd)
 Product related- A product should be such
that it cannot be easily copied. The
patenting of the product or heavy
investment on the product is done at that
time.
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8. Marketing strategies for
Introduction (contd)
 Price related- Premium or low prices are
set. High prices help in quick recovery of
costs & low prices discourage competitions
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9. Marketing strategies for
Introduction (contd)
 Place related- Distribution channel offers
easy access to target markets.
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10. Marketing strategies for
Introduction (contd)
 Promotion Related- Promotion is kept high
to gain the attention of the market & the
focus is on creating awareness.
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11. Growth
Awareness of the product is increased & it
starts gaining acceptance. It features:
 Competitors joining in
 Awareness increases
 Promotion shifts to fighting competitions
 Sales & profits start increasing.
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12. Marketing strategies for Growth
stage
 Product related- Small modifications or
additions to the product
 Price related- Prices modified in view of
competition
 Place related- few more channels added
 Promotion related- promotion high &
competitive
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13. Maturity Stage
Features include:
 Market becomes fully aware
 Competition becomes intense
 Sales & profits continue to increase as
market is still growing.
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14. Marketing Strategies in maturity
stage
 Product related- modifications & additions
continue
 Price related: modified & reduced in view
of competition.
 Place related: channels increased to reach
the market
 Promotion related: high & competititve
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15. Saturation
Features include:
 Market becomes stable
 New competitors do not enter the market
 Sales stabilize
 Profits start going down, because of heavy
cost of competition.
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16. Decline Stage
Features include:
 Market loses interest in the product
 Profit & sales decline
 Marketers plan exit strategies from the
market.
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17. Marketing strategies in decline
stage
 Shut Shop & Leave: close business &
leave the market
 Stay on: Stay on in the hope that others
will leave the market
 Milking: Some marketers keep operating &
stop all expenditures
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18. Second Life cycle
This strategy often used by multinational
companies strategies include:
 Finding a new use of the product
In this stage the product begins its journey
again from introduction & continues with
the same process.
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19. Product Deletion
 It is stage is in which the product is
deleted from the market, as it becomes
obsolete, lose their attractiveness in the
market place, & have to be replaced.
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20. Methods of product deletion
 Phase- out
 Run-out
 Drop
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21. Methods of Product deletion
(contd)
 Phase-out- It enables a product to be
removed in an orderly fashion. For
example a menu item would be replaced
on the next revision of the menu.
 A Run-out- would be used when sales for
an item is low & costs exceed revenue.
 Drop- this option is usually chosen when a
product may cause customer harm or
dissatisfaction.
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