2. Flow of Presentation Introduction Stages Explanation Utility of PLC Marketing strategy Operation level Limitation
3. A product passes through certain distinct stages during its life these stages are called product life cycle. Normally it is represented as a sales curve spanning the product’s course from introduction to its exit. Introduction
23. Sales and Profits Over the Product’s Life From Introduction to Decline Sales and Profits ($) Sales Profits Time Product Develop- ment Introduction Growth Maturity Decline Losses/ Investments ($)
24. Utility of PLC Concept PLC concept lies in the fact that each stage is characterized by a typical market behavior and lends itself to the application of certain specific marketing strategy. Understand and managing it effectively can help in prolonging the profitable phase of product’s lifespan.
35. It helps to assign investment to the right products and avoid committing heavy resources on wrong product It helps to formulate corporate strategy as well as marketing strategy in an effective manner. Facilitate Investment Decision on Product
36. Facilitate choice of appropriate entry strategy Entry as Innovator Entry as Early follower Entry as Segmenter Entry as me-too PLC facilitate choice of the right time to exit.
37.
38. Used to make stronger ‘company-consumer relationship’
39. It also used for augmenting the product, improving service support and modifying the pricing approaches.Provides useful clues to managing customers