2. A company's Marketing strategy must change as the
product, market, and competitors change over the
PLC
To say that a product has a life cycle is to assert
four things:
1. Products have a limited life.
2. Product sales pass through distinct stages, each
posing different challenges, opportunities, and
problems to the seller.
3. Profits rise and fall at different stages of the product
life cycle.
4. Products require different marketing, financial,
manufacturing, purchasing, and human resource
3. The Product Life Cycle (PLC) has Five Stages
1) Product development
Begins when the company develops a new-
product idea
Sales are zero
Investment costs are high
Profits are negative
4. 2) Introduction
Low sales
High cost per customer acquired
Negative profits
Little competition
5. 3) Growth
Rapidly rising sales
Average cost per customer
Rising profits
Growing competition
6. 4) Maturity
Sales peak
Low cost per customer
High profits
Competition begins to decline