PRODUCT
LIFE
CYCLE
PRESENTED BY :-
AYUSHI GUPTA
M.COM 1 SEM

CONTENT
• PRODUCT LIFE CYCLE
• ASSUMPTIONS
• STAGES OF PLC-
INTRODUCTION
GROWTH
MATURITY
DECLINE
• EXTENDING PRODUCT LIFE CYCLE

PRODUCT LIFE CYCLE
• Like human beings, products too have a life span.
• Product goes through varied stages from inception to decline.
• Death of a product refers to when it stops generating sales and
profits.
• In each stage there are distinct opportunities and problems with
respect to marketing strategy and profit potential.
• Product life cycle(PLC) deals with the life of a product in the
market with respect to business or commercial costs and sales
measures.

PRODUCT LIFE CYCLE
• Products require different marketing, financing, manufacturing,
purchasing and personnel strategies in the different stages of
their life cycle.
• The PLC concept provides a useful framework for developing
effective marketing strategies in different stages of the Product
Life Cycle.
• “The product life cycle is an attempt to recognize distinct
stages in the sales history of the product.”
-PHILIP KOTLER

ASSUMPTIONS
(1) Product have a limited life and thus have a life cycle.
(2) Product sales passes through different stages,
challenges, opportunities and problem to seller.
(3) Product require different Marketing , Financing,
Manufacturing, Purchasing and Human recourses strategies
in each stages.

STAGES OF PLC
INTRODU
CTION
NEW
PRODUCT IS
FIRST
DISTRIBUTED
AND MADE
AVAILABLE
TO
CUSTOMER
GROWTH
PRODUCT
SALES
START
CLIMBING
QUICKLY
MATURITY
THE
PRODUCT’
S SALE
GROWTH
SLOWS OR
LEVEL OFF
DECLINE
PRODUCT’
S SALE
STARTS
DECLININ
G

• Product conceptualized to meet consumer
needs.
• There are six parts of this stage-
-Exploration of idea
-Screening
-Business analysis
-Development
-Testing
-Commercialization

Sales-Low
Cost- High cost per customer
Profit - Negative
Customers -Innovators
Competitors- Few
Product- offers basic product
Object -Create product awareness and trial
Price –cost plus formula
Distribution- selective
Advertising- build product awareness
Promotion- heavy to entice product trial

• Product is already present in the
market.
• Customers are satisfied with the
product.
• By spending money on product
development position can be captured
in the market.
GROWTH
PRODUCT
SALES
START
CLIMBING
QUICKLY

Sales- Rapidly rising
Cost- Average cost per unit
Profit – Rising profit
Customers –Early adopters and new
Competitors- Growing
Product- Offers extension, warranty and other services
Object –Maximize market share
Price –To Penetrate market
Distribution- Intensive
Advertising- Build product awareness and interest in market
Promotion-Moderate to take advantage of demand

• It posses strong challenges to
marketing management.
• New models and methods are adopted
to promote sales.
• Buyers continue to grow.
• Promotional efforts may lengthen the
span of stage.(not permanent solution)
GROWTH
PRODUCT
SALES
START
CLIMBING
QUICKLY
MATURITY
THE
PRODUCT’S
SALE
GROWTH
SLOWS OR
LEVEL OFF

Sales- Peak
Cost- Low cost per customer
Profit - High
Customers –Middle majority
Competitors- Stable/begin to decline
Product- Diversify brand and model
Object -Maximize profits while defending market share
Price – To match or beat customer
Distribution- More intensive
Advertising- Stress brand differences and benefits
Promotion- Increase to encourage brand switching

• Profit margin touch a low level.
• Customer start using new products.
• Reasons of decline-
-Technical advances,
-Increased completion
-Change in tastes
-Adoption of substitute products.
GROWTH
PRODUCT
SALES
START
CLIMBING
QUICKLY
MATURITY
THE
PRODUCT’S
SALE
GROWTH
SLOWS OR
LEVEL OFF
DECLINE
PRODUCT’S
SALE
STARTS
DECLINING

Sales- Declining
Cost- Low cost per customer
Profit - Declining
Customers - Laggards
Competitors- Declining
Product- Phase out weak items
Object -Reduce expenditures and milk the brand
Price – Cut price
Distribution- Selective: phase out unprofitable outlets
Advertising- Reduce to level needed to retain hard-core loyal customers
Promotion- Reduce to minimum level

EXTENDING
ADVERTISING
EXPLORING AND EXPENDING TO NEW MARKET
PRICE REDUCTION
ADDING NEW FEATURES
PACKAGING
CHANGING CUSTOMER CONSUMPTION HABITS
SPECIAL PROMOTION
HEIGHTENING INTEREST

REFERENCE
• MARKETING MANAGEMENT- C.B. GUPTA
• MARKETING[An Introduction] - PHILIP KOTLER
• INTERNET