SlideShare ist ein Scribd-Unternehmen logo
PRODUCT LIFE
CYCLE
Meaning
All products have certain length of life during which they
pass through certain identifiable stages. The PLC is a
conceptual representation of product ageing process. Like
your life is divided into stages same as life of a product is
also divided.
Product start with introduction in the market for the
purpose of sale. The demand of that product is gradually
increased in the market & it reach to its maximum, from
where it start decline. It is effective lifespan of a product.
Definitions
• Acc to Philip kotler:
“The Plc is an attempt to recognize the distinct stages in
the sales history of the product.”
• Acc to William J. Stanton:
“The Product life cycle concept is the explanation of the
product from its birth to death as a product exists in
different stages & in different competitive environments”
Stages of Product life cycle
Introduction Stage
• It is the 1st stage, wherein the product is launched in the
market with full scale production & marketing
programme.
• The product is a new one. It means “ a product that opens
up an entirely new market, replaces an existing product or
significantly broadens the market for an existing product.”
• In this stage sales grow at a very lower rate because it is
not an effective demand.
characteristics
• Low & slow sales.
• High product price.
• Heavy promotional expenses.
• Lack of knowledge.
• Low profits.
• Narrow product lines.
Growth stage
• Once the market has accepted the product, sales
begin to rise & product enter its 2nd stage.
• The product achieves considerable & widespread
approval in the market. The sales & profits
increases at an accelerated rate.
• In this effective distribution, advertising & sales
promotion are considered as the key factors.
characteristics
• Rapid increase in sales.
• Product improvements.
• Increase in competition.
• Increase in profits.
• Reduction in price.
• Strengthening the distribution channel.
Maturity stage
• Market becomes saturated because the household
demand is satisfied & distribution channels are full. The
product has to face keen competition which brings
pressure on prices. Though the sales of the product rises
but at a lower rate. Profit margin however decline due to
keen competition.
characteristics
• Sales increases at decreasing rate.
• Normal promotional expenses.
• Uniform & lower prices.
• Product modifications.
• Dealer’s support.
• Profit margin decreases
Decline stage
• This is the finial stage, sooner or later actual sales begin
to fall under the impact of new product competition &
changing consumer behavior. The sales & profits fall down
sharply & the promotional expenditure has to be cut
down drastically.
characteristics
• Rapid decrease in sales.
• Further decrease in prices
• No promotional expenses.
• Suspension of production work.
Product life cycle for stylish
products • A style is the manner in which a
product is presented and certain styles
come and go.
• Acc to Kotler:
“ A style is a basic & distinctive mode
of expression.”
• E.g., Furniture, automobile, clothing,
shoes.
• The current style for mobile phone is
touch screen and this style will last
until a new technology style appears.
So the shape of a style life cycle is like a
wave, as one style fades out, another
appears.
Product life cycle for fashion
products • A fashion refer to a currently accepted
style in a specific field. It is a current
trend which can have a long or short life
cycle.
• Fashion tends to grow slowly, remain
popular for a while, then decline slowly
• The demand for the product increases at
a faster rate, reaches to its top & with
the change in fashion the product life
enter to decline stage.
• E.g., readymade garments, purses,
bangles, shoes etc
Product life cycle for fad
products • Fads are fashions that enter quickly
with great zeal, peak early & decline
very quickly.
• A fad is a product that is around for a
short period.
• E.g., garments, caps, hair style, music
albums, films & other fashion
products.
Features of Product life cycle
• Every product has the life cycle as every human
being has.
• Every product cycle start from an introduction of the
product in the market & it is ceased after passing
through the market growth & market stages.
• It denotes that the product passes from different
stages at different speed in course of completing the
whole cycle.
• The profit of business firm grow rapidly in the stage
of growth & starts declining due to competitive
conditions at the stage of maturity. However the
sales volume go on increasing.
Cont’d…
• No two products have identical life cycle.
• The duration of each stage is different for
different products. It depends upon factors(nature
of products, technological advancement,
competition pressure, etc)
• It is not necessary that all products go through all
stages, some fail at the initial stage , other may
reach maturity stage after a long time.
• It provide a useful framework for developing
effective marketing strategies in different stages
of the product life cycle.
Factors affecting The product
life cycle
• Rate of technological change.
• Rate of market acceptance.
• Competitor’s entry.
• Economic & managerial forces
• Risk bearing capacity
• Government policy
Extension of product life cycle
• Product modification.
• Entry in the new market.
• Promoting frequent use.
• Developing different usage.
• Finding new uses.
• Use of modern advertising & sales promotion
techniques.
Importance of product life cycle
• Helpful in sales forecasting.
• Helpful as a predictive tool.
• Helpful as a planning tool.
• Helpful as a control tool.
• Helpful in framing marketing programme.
• Helpful in price determination.
• Development of new product.
• Comparison of different products.
Marketing Strategies during
PLC
Every marketeer tries that his product should stay
in the market for the longest period, thus he has
to take up various strategies at the different stages
of product life cycle.
• Introduction stage
• Growth stage
• Maturity stage
• Declining stage
Introduction stage
• The introduction stage start with the launching of
a new product by the marketeer. The product is
new one, so sales level is low & profits are
negative.
• It is very crucial stage for the marketeer because
the success or failure of the product is very much
determine in this stage.
• Strategies:-
– Make proper advertising before the product is
launched in the market.
– Shorten the period of introduction as far as possible.
Cont’d…
– Heavy advertising & promotional expenses( attractive
gifts).
– Selective distribution & attractive discount to dealers.
– If product is technical then adopt skimming pricing
policy & if product is simple then adopt penetration
pricing policy.
Growth stage
• If the new product satisfy the market, it will enter
a growth stage in which sales increases at a faster
rate. The high profits attract the competitors to
enter the market with improved substitute
products. Price remains the same or slightly
decreased.
• Strategies:-
– Improve the product quality.
– Add new product features & improve the product style.
– Enter into new market areas
Cont’d…
– Reduce the price to attract more number of buyers.
– Increase in promotional activities.
– Strengthen the distribution channels by increasing the
number of retailers.
– New version/models, in different sizes & price range
are introduced to cater the requirements of different
types of buyers.
– Create brand image of the product through
promotional activities.
– Emphasis on customer satisfaction.
Maturity Stage
• It has a longer duration than the other stages. In
this sales increase at a very low rate. The product
has to face keen competition. Competitors lower
down the price increase their advertising, sales
promotion. It increases the profit.
• Strategies:-
– Improve the quality of the product & introduce some
new models.
– Give proper attention to increase the usage among the
current customers & also pursue some new uses of
the product.
Cont’d…
– Try to convert non-users into users of the product.
– Introduce new packaging & wrapper change policy.
– Lowering the price to attract more consumer.
– Middlemen’s margin is increased, to create the
interest.
– Give proper emphasis on advertising & promotional
programmes.
– Change in the style & design of the product.
A firm can improve his sales by changing one or more
elements of marketing mix. It can reduce the price to
attract new users & competitor’s.
Declining stage
• In this final stage, sales begin to fall & the product
is gradually replaced by new innovation. This is
because of technical advancement, change in
consumer preference, increased competition. For
marketeer this stage is very crucial.
• Strategies:-
– Improve the product in a functional sense.
– Review the marketing & production programs.
– Emphasis on cost control techniques to generate
profits means cut all costs to minimum level.
Cont’d…
– Economy packs or models may be introduced to revive
the market.
– Adopt selective promotion of the product to reduce
distribution costs.
– Packaging may be made more attractive & reusable
packages.
– R&D efforts are increased to innovate the new
product.
– Sales incentive schemes are introduced to get dealer’s
support.

Weitere ähnliche Inhalte

Was ist angesagt?

New product development process
New product development processNew product development process
New product development process
kdore
 
Marketing mix
Marketing mixMarketing mix
Models of consumer behaviour
Models of consumer behaviourModels of consumer behaviour
Models of consumer behaviour
Vikram g b
 
Markrting channels
Markrting channelsMarkrting channels
Markrting channels
Sagar Gadekar
 
Product Life Cycle (PLC)
Product Life Cycle (PLC)Product Life Cycle (PLC)
Product Life Cycle (PLC)
Amitabh Mishra
 
product mix and product lines
product mix and product linesproduct mix and product lines
product mix and product lines
Sameer Mathur
 
Product life cycle with example
Product life cycle with exampleProduct life cycle with example
Product life cycle with example
Priyanka Anni
 
Product life cycle
Product life cycleProduct life cycle
Product life cycle
Navneet Jingar
 
STP: segmentation, targeting and positioning
STP: segmentation, targeting and positioningSTP: segmentation, targeting and positioning
STP: segmentation, targeting and positioning
savi maha
 
CONSUMER BEHAVIOUR INDUSTRIAL BUYING BEHAVIOUR
CONSUMER BEHAVIOUR INDUSTRIAL BUYING BEHAVIOURCONSUMER BEHAVIOUR INDUSTRIAL BUYING BEHAVIOUR
CONSUMER BEHAVIOUR INDUSTRIAL BUYING BEHAVIOUR
Ashish Hande
 
Market segmentation
Market segmentationMarket segmentation
Concept of Marketing
Concept of MarketingConcept of Marketing
Concept of Marketing
Bala Ayyalu Gurunathan
 
NATURE AND SCOPE OF MARKETING
NATURE AND SCOPE OF MARKETINGNATURE AND SCOPE OF MARKETING
NATURE AND SCOPE OF MARKETING
Saumya Kumar
 
Product decision
Product decisionProduct decision
Product decision
deepu2000
 
Market Segmentation
Market SegmentationMarket Segmentation
Market Segmentation
Bryan Agustin Oculam
 
Nature and scope of marketing
Nature and scope of marketingNature and scope of marketing
Nature and scope of marketing
Abhinav Goel
 
Marketing
MarketingMarketing
Marketing
Marcus9000
 
Marketing meaning, definition, scope
Marketing  meaning, definition, scopeMarketing  meaning, definition, scope
Marketing meaning, definition, scope
Vikash Kumar Bibhakar
 
Marketing - Promotion
Marketing - PromotionMarketing - Promotion
Marketing - Promotion
tutor2u
 
Consumer buying decision process
Consumer buying decision processConsumer buying decision process
Consumer buying decision process
Talent Corner HR Services Pvt Ltd.
 

Was ist angesagt? (20)

New product development process
New product development processNew product development process
New product development process
 
Marketing mix
Marketing mixMarketing mix
Marketing mix
 
Models of consumer behaviour
Models of consumer behaviourModels of consumer behaviour
Models of consumer behaviour
 
Markrting channels
Markrting channelsMarkrting channels
Markrting channels
 
Product Life Cycle (PLC)
Product Life Cycle (PLC)Product Life Cycle (PLC)
Product Life Cycle (PLC)
 
product mix and product lines
product mix and product linesproduct mix and product lines
product mix and product lines
 
Product life cycle with example
Product life cycle with exampleProduct life cycle with example
Product life cycle with example
 
Product life cycle
Product life cycleProduct life cycle
Product life cycle
 
STP: segmentation, targeting and positioning
STP: segmentation, targeting and positioningSTP: segmentation, targeting and positioning
STP: segmentation, targeting and positioning
 
CONSUMER BEHAVIOUR INDUSTRIAL BUYING BEHAVIOUR
CONSUMER BEHAVIOUR INDUSTRIAL BUYING BEHAVIOURCONSUMER BEHAVIOUR INDUSTRIAL BUYING BEHAVIOUR
CONSUMER BEHAVIOUR INDUSTRIAL BUYING BEHAVIOUR
 
Market segmentation
Market segmentationMarket segmentation
Market segmentation
 
Concept of Marketing
Concept of MarketingConcept of Marketing
Concept of Marketing
 
NATURE AND SCOPE OF MARKETING
NATURE AND SCOPE OF MARKETINGNATURE AND SCOPE OF MARKETING
NATURE AND SCOPE OF MARKETING
 
Product decision
Product decisionProduct decision
Product decision
 
Market Segmentation
Market SegmentationMarket Segmentation
Market Segmentation
 
Nature and scope of marketing
Nature and scope of marketingNature and scope of marketing
Nature and scope of marketing
 
Marketing
MarketingMarketing
Marketing
 
Marketing meaning, definition, scope
Marketing  meaning, definition, scopeMarketing  meaning, definition, scope
Marketing meaning, definition, scope
 
Marketing - Promotion
Marketing - PromotionMarketing - Promotion
Marketing - Promotion
 
Consumer buying decision process
Consumer buying decision processConsumer buying decision process
Consumer buying decision process
 

Andere mochten auch

Factors influencing growth and development
Factors influencing growth and developmentFactors influencing growth and development
Factors influencing growth and development
sarzasergio
 
Factors That Affect Growth And Development
Factors That Affect Growth And DevelopmentFactors That Affect Growth And Development
Factors That Affect Growth And Development
lavadoods Masta
 
Theories & factors affecting growth and development
Theories & factors affecting growth and developmentTheories & factors affecting growth and development
Theories & factors affecting growth and development
Aruna Naudasari
 
Product life cycle & marketing strategies
Product life cycle & marketing strategiesProduct life cycle & marketing strategies
Product life cycle & marketing strategies
Amar Ingale
 
Product life cycle & marketing strategy
Product life cycle & marketing strategyProduct life cycle & marketing strategy
Product life cycle & marketing strategy
Hitesh Sunny
 
Product life cycle
Product life cycleProduct life cycle
Product life cycle
Vandna Dhiman
 

Andere mochten auch (6)

Factors influencing growth and development
Factors influencing growth and developmentFactors influencing growth and development
Factors influencing growth and development
 
Factors That Affect Growth And Development
Factors That Affect Growth And DevelopmentFactors That Affect Growth And Development
Factors That Affect Growth And Development
 
Theories & factors affecting growth and development
Theories & factors affecting growth and developmentTheories & factors affecting growth and development
Theories & factors affecting growth and development
 
Product life cycle & marketing strategies
Product life cycle & marketing strategiesProduct life cycle & marketing strategies
Product life cycle & marketing strategies
 
Product life cycle & marketing strategy
Product life cycle & marketing strategyProduct life cycle & marketing strategy
Product life cycle & marketing strategy
 
Product life cycle
Product life cycleProduct life cycle
Product life cycle
 

Ähnlich wie Product life cycle

productlifecycle
productlifecycleproductlifecycle
productlifecycle
JayeshGadhave1
 
Product live cycle and a very informative slide
Product live cycle and a very informative slideProduct live cycle and a very informative slide
Product live cycle and a very informative slide
Aman859174
 
Product lifecycle - with different Dimensions
Product lifecycle - with different  Dimensions Product lifecycle - with different  Dimensions
Product lifecycle - with different Dimensions
Dr. Sanjay Kumar Yadav
 
PRODUCT LIFE CYCLE, Marketing Management, Product mix
PRODUCT LIFE CYCLE, Marketing Management, Product mixPRODUCT LIFE CYCLE, Marketing Management, Product mix
PRODUCT LIFE CYCLE, Marketing Management, Product mix
ayushigupta300
 
Product life cycle
Product life cycleProduct life cycle
Product life cycle
Farhana Islam Chowdhury
 
Product life cycle
Product life cycleProduct life cycle
Product life cycle
Farhana Islam Chowdhury
 
Product Life Cycle.pptx
Product Life Cycle.pptxProduct Life Cycle.pptx
Product Life Cycle.pptx
PriyankaLunavat
 
Product life cycle
Product life cycleProduct life cycle
Product life cycle
Rivela de Guia
 
Diffusion of innovation and job Specification.pptx
Diffusion of innovation and job Specification.pptxDiffusion of innovation and job Specification.pptx
Diffusion of innovation and job Specification.pptx
FloresaTahum
 
PRODUCT PLANNING
PRODUCT PLANNINGPRODUCT PLANNING
PRODUCT PLANNING
KvNajla
 
Product life cycle1_ppt
Product life cycle1_pptProduct life cycle1_ppt
Product life cycle1_ppt
Aamera Khan
 
Bank Marketing Concepts
Bank Marketing ConceptsBank Marketing Concepts
Bank Marketing Concepts
Lucky
 
Product and product life cycle and strategies
Product and product life cycle and strategies Product and product life cycle and strategies
Product and product life cycle and strategies
Girish Jadhwani
 
Product life cycle
Product life cycleProduct life cycle
Product life cycle
Indranil Bhattacharjee
 
Product Life Cycle
Product Life CycleProduct Life Cycle
Product Life Cycle
Dr Pooja
 
Ss product life cycle
Ss product life cycleSs product life cycle
Ss product life cycle
CMPCERT
 
Ibm iplc theory
Ibm iplc theoryIbm iplc theory
Ibm iplc theory
giripratibha
 
Developing Marketing Strategy for undergrad students
Developing Marketing Strategy for undergrad studentsDeveloping Marketing Strategy for undergrad students
Developing Marketing Strategy for undergrad students
CrisCahayon1
 
PRODUCT MANAGEMENT & PRODUCT LIFE CYCLE
PRODUCT MANAGEMENT & PRODUCT LIFE CYCLEPRODUCT MANAGEMENT & PRODUCT LIFE CYCLE
PRODUCT MANAGEMENT & PRODUCT LIFE CYCLE
MAHUA MUKHERJEE
 
Marketing - Product Life Cycle
Marketing - Product Life CycleMarketing - Product Life Cycle
Marketing - Product Life Cycle
tutor2u
 

Ähnlich wie Product life cycle (20)

productlifecycle
productlifecycleproductlifecycle
productlifecycle
 
Product live cycle and a very informative slide
Product live cycle and a very informative slideProduct live cycle and a very informative slide
Product live cycle and a very informative slide
 
Product lifecycle - with different Dimensions
Product lifecycle - with different  Dimensions Product lifecycle - with different  Dimensions
Product lifecycle - with different Dimensions
 
PRODUCT LIFE CYCLE, Marketing Management, Product mix
PRODUCT LIFE CYCLE, Marketing Management, Product mixPRODUCT LIFE CYCLE, Marketing Management, Product mix
PRODUCT LIFE CYCLE, Marketing Management, Product mix
 
Product life cycle
Product life cycleProduct life cycle
Product life cycle
 
Product life cycle
Product life cycleProduct life cycle
Product life cycle
 
Product Life Cycle.pptx
Product Life Cycle.pptxProduct Life Cycle.pptx
Product Life Cycle.pptx
 
Product life cycle
Product life cycleProduct life cycle
Product life cycle
 
Diffusion of innovation and job Specification.pptx
Diffusion of innovation and job Specification.pptxDiffusion of innovation and job Specification.pptx
Diffusion of innovation and job Specification.pptx
 
PRODUCT PLANNING
PRODUCT PLANNINGPRODUCT PLANNING
PRODUCT PLANNING
 
Product life cycle1_ppt
Product life cycle1_pptProduct life cycle1_ppt
Product life cycle1_ppt
 
Bank Marketing Concepts
Bank Marketing ConceptsBank Marketing Concepts
Bank Marketing Concepts
 
Product and product life cycle and strategies
Product and product life cycle and strategies Product and product life cycle and strategies
Product and product life cycle and strategies
 
Product life cycle
Product life cycleProduct life cycle
Product life cycle
 
Product Life Cycle
Product Life CycleProduct Life Cycle
Product Life Cycle
 
Ss product life cycle
Ss product life cycleSs product life cycle
Ss product life cycle
 
Ibm iplc theory
Ibm iplc theoryIbm iplc theory
Ibm iplc theory
 
Developing Marketing Strategy for undergrad students
Developing Marketing Strategy for undergrad studentsDeveloping Marketing Strategy for undergrad students
Developing Marketing Strategy for undergrad students
 
PRODUCT MANAGEMENT & PRODUCT LIFE CYCLE
PRODUCT MANAGEMENT & PRODUCT LIFE CYCLEPRODUCT MANAGEMENT & PRODUCT LIFE CYCLE
PRODUCT MANAGEMENT & PRODUCT LIFE CYCLE
 
Marketing - Product Life Cycle
Marketing - Product Life CycleMarketing - Product Life Cycle
Marketing - Product Life Cycle
 

Kürzlich hochgeladen

LeadMagnet IQ Review: Unlock the Secret to Effortless Traffic and Leads.pdf
LeadMagnet IQ Review:  Unlock the Secret to Effortless Traffic and Leads.pdfLeadMagnet IQ Review:  Unlock the Secret to Effortless Traffic and Leads.pdf
LeadMagnet IQ Review: Unlock the Secret to Effortless Traffic and Leads.pdf
SelfMade bd
 
Acumatica vs. Sage Intacct vs. NetSuite _ NOW CFO.pdf
Acumatica vs. Sage Intacct vs. NetSuite _ NOW CFO.pdfAcumatica vs. Sage Intacct vs. NetSuite _ NOW CFO.pdf
Acumatica vs. Sage Intacct vs. NetSuite _ NOW CFO.pdf
BrainSell Technologies
 
The Impact of the Internet of Things (IoT) on Smart Homes and Cities
The Impact of the Internet of Things (IoT) on Smart Homes and CitiesThe Impact of the Internet of Things (IoT) on Smart Homes and Cities
The Impact of the Internet of Things (IoT) on Smart Homes and Cities
Arpan Buwa
 
EuroPython 2024 - Streamlining Testing in a Large Python Codebase
EuroPython 2024 - Streamlining Testing in a Large Python CodebaseEuroPython 2024 - Streamlining Testing in a Large Python Codebase
EuroPython 2024 - Streamlining Testing in a Large Python Codebase
Jimmy Lai
 
Redefining Cybersecurity with AI Capabilities
Redefining Cybersecurity with AI CapabilitiesRedefining Cybersecurity with AI Capabilities
Redefining Cybersecurity with AI Capabilities
Priyanka Aash
 
leewayhertz.com-Generative AI tech stack Frameworks infrastructure models and...
leewayhertz.com-Generative AI tech stack Frameworks infrastructure models and...leewayhertz.com-Generative AI tech stack Frameworks infrastructure models and...
leewayhertz.com-Generative AI tech stack Frameworks infrastructure models and...
alexjohnson7307
 
Computer HARDWARE presenattion by CWD students class 10
Computer HARDWARE presenattion by CWD students class 10Computer HARDWARE presenattion by CWD students class 10
Computer HARDWARE presenattion by CWD students class 10
ankush9927
 
UX Webinar Series: Essentials for Adopting Passkeys as the Foundation of your...
UX Webinar Series: Essentials for Adopting Passkeys as the Foundation of your...UX Webinar Series: Essentials for Adopting Passkeys as the Foundation of your...
UX Webinar Series: Essentials for Adopting Passkeys as the Foundation of your...
FIDO Alliance
 
BLOCKCHAIN TECHNOLOGY - Advantages and Disadvantages
BLOCKCHAIN TECHNOLOGY - Advantages and DisadvantagesBLOCKCHAIN TECHNOLOGY - Advantages and Disadvantages
BLOCKCHAIN TECHNOLOGY - Advantages and Disadvantages
SAI KAILASH R
 
MAKE MONEY ONLINE Unlock Your Income Potential Today.pptx
MAKE MONEY ONLINE Unlock Your Income Potential Today.pptxMAKE MONEY ONLINE Unlock Your Income Potential Today.pptx
MAKE MONEY ONLINE Unlock Your Income Potential Today.pptx
janagijoythi
 
Finetuning GenAI For Hacking and Defending
Finetuning GenAI For Hacking and DefendingFinetuning GenAI For Hacking and Defending
Finetuning GenAI For Hacking and Defending
Priyanka Aash
 
Improving Learning Content Efficiency with Reusable Learning Content
Improving Learning Content Efficiency with Reusable Learning ContentImproving Learning Content Efficiency with Reusable Learning Content
Improving Learning Content Efficiency with Reusable Learning Content
Enterprise Knowledge
 
kk vathada _digital transformation frameworks_2024.pdf
kk vathada _digital transformation frameworks_2024.pdfkk vathada _digital transformation frameworks_2024.pdf
kk vathada _digital transformation frameworks_2024.pdf
KIRAN KV
 
Premium Girls Call Mumbai 9920725232 Unlimited Short Providing Girls Service ...
Premium Girls Call Mumbai 9920725232 Unlimited Short Providing Girls Service ...Premium Girls Call Mumbai 9920725232 Unlimited Short Providing Girls Service ...
Premium Girls Call Mumbai 9920725232 Unlimited Short Providing Girls Service ...
shanihomely
 
High Profile Girls call Service Pune 000XX00000 Provide Best And Top Girl Ser...
High Profile Girls call Service Pune 000XX00000 Provide Best And Top Girl Ser...High Profile Girls call Service Pune 000XX00000 Provide Best And Top Girl Ser...
High Profile Girls call Service Pune 000XX00000 Provide Best And Top Girl Ser...
bhumivarma35300
 
Patch Tuesday de julio
Patch Tuesday de julioPatch Tuesday de julio
Patch Tuesday de julio
Ivanti
 
The Path to General-Purpose Robots - Coatue
The Path to General-Purpose Robots - CoatueThe Path to General-Purpose Robots - Coatue
The Path to General-Purpose Robots - Coatue
Razin Mustafiz
 
UX Webinar Series: Drive Revenue and Decrease Costs with Passkeys for Consume...
UX Webinar Series: Drive Revenue and Decrease Costs with Passkeys for Consume...UX Webinar Series: Drive Revenue and Decrease Costs with Passkeys for Consume...
UX Webinar Series: Drive Revenue and Decrease Costs with Passkeys for Consume...
FIDO Alliance
 
Vertex AI Agent Builder - GDG Alicante - Julio 2024
Vertex AI Agent Builder - GDG Alicante - Julio 2024Vertex AI Agent Builder - GDG Alicante - Julio 2024
Vertex AI Agent Builder - GDG Alicante - Julio 2024
Nicolás Lopéz
 
leewayhertz.com-AI agents for healthcare Applications benefits and implementa...
leewayhertz.com-AI agents for healthcare Applications benefits and implementa...leewayhertz.com-AI agents for healthcare Applications benefits and implementa...
leewayhertz.com-AI agents for healthcare Applications benefits and implementa...
alexjohnson7307
 

Kürzlich hochgeladen (20)

LeadMagnet IQ Review: Unlock the Secret to Effortless Traffic and Leads.pdf
LeadMagnet IQ Review:  Unlock the Secret to Effortless Traffic and Leads.pdfLeadMagnet IQ Review:  Unlock the Secret to Effortless Traffic and Leads.pdf
LeadMagnet IQ Review: Unlock the Secret to Effortless Traffic and Leads.pdf
 
Acumatica vs. Sage Intacct vs. NetSuite _ NOW CFO.pdf
Acumatica vs. Sage Intacct vs. NetSuite _ NOW CFO.pdfAcumatica vs. Sage Intacct vs. NetSuite _ NOW CFO.pdf
Acumatica vs. Sage Intacct vs. NetSuite _ NOW CFO.pdf
 
The Impact of the Internet of Things (IoT) on Smart Homes and Cities
The Impact of the Internet of Things (IoT) on Smart Homes and CitiesThe Impact of the Internet of Things (IoT) on Smart Homes and Cities
The Impact of the Internet of Things (IoT) on Smart Homes and Cities
 
EuroPython 2024 - Streamlining Testing in a Large Python Codebase
EuroPython 2024 - Streamlining Testing in a Large Python CodebaseEuroPython 2024 - Streamlining Testing in a Large Python Codebase
EuroPython 2024 - Streamlining Testing in a Large Python Codebase
 
Redefining Cybersecurity with AI Capabilities
Redefining Cybersecurity with AI CapabilitiesRedefining Cybersecurity with AI Capabilities
Redefining Cybersecurity with AI Capabilities
 
leewayhertz.com-Generative AI tech stack Frameworks infrastructure models and...
leewayhertz.com-Generative AI tech stack Frameworks infrastructure models and...leewayhertz.com-Generative AI tech stack Frameworks infrastructure models and...
leewayhertz.com-Generative AI tech stack Frameworks infrastructure models and...
 
Computer HARDWARE presenattion by CWD students class 10
Computer HARDWARE presenattion by CWD students class 10Computer HARDWARE presenattion by CWD students class 10
Computer HARDWARE presenattion by CWD students class 10
 
UX Webinar Series: Essentials for Adopting Passkeys as the Foundation of your...
UX Webinar Series: Essentials for Adopting Passkeys as the Foundation of your...UX Webinar Series: Essentials for Adopting Passkeys as the Foundation of your...
UX Webinar Series: Essentials for Adopting Passkeys as the Foundation of your...
 
BLOCKCHAIN TECHNOLOGY - Advantages and Disadvantages
BLOCKCHAIN TECHNOLOGY - Advantages and DisadvantagesBLOCKCHAIN TECHNOLOGY - Advantages and Disadvantages
BLOCKCHAIN TECHNOLOGY - Advantages and Disadvantages
 
MAKE MONEY ONLINE Unlock Your Income Potential Today.pptx
MAKE MONEY ONLINE Unlock Your Income Potential Today.pptxMAKE MONEY ONLINE Unlock Your Income Potential Today.pptx
MAKE MONEY ONLINE Unlock Your Income Potential Today.pptx
 
Finetuning GenAI For Hacking and Defending
Finetuning GenAI For Hacking and DefendingFinetuning GenAI For Hacking and Defending
Finetuning GenAI For Hacking and Defending
 
Improving Learning Content Efficiency with Reusable Learning Content
Improving Learning Content Efficiency with Reusable Learning ContentImproving Learning Content Efficiency with Reusable Learning Content
Improving Learning Content Efficiency with Reusable Learning Content
 
kk vathada _digital transformation frameworks_2024.pdf
kk vathada _digital transformation frameworks_2024.pdfkk vathada _digital transformation frameworks_2024.pdf
kk vathada _digital transformation frameworks_2024.pdf
 
Premium Girls Call Mumbai 9920725232 Unlimited Short Providing Girls Service ...
Premium Girls Call Mumbai 9920725232 Unlimited Short Providing Girls Service ...Premium Girls Call Mumbai 9920725232 Unlimited Short Providing Girls Service ...
Premium Girls Call Mumbai 9920725232 Unlimited Short Providing Girls Service ...
 
High Profile Girls call Service Pune 000XX00000 Provide Best And Top Girl Ser...
High Profile Girls call Service Pune 000XX00000 Provide Best And Top Girl Ser...High Profile Girls call Service Pune 000XX00000 Provide Best And Top Girl Ser...
High Profile Girls call Service Pune 000XX00000 Provide Best And Top Girl Ser...
 
Patch Tuesday de julio
Patch Tuesday de julioPatch Tuesday de julio
Patch Tuesday de julio
 
The Path to General-Purpose Robots - Coatue
The Path to General-Purpose Robots - CoatueThe Path to General-Purpose Robots - Coatue
The Path to General-Purpose Robots - Coatue
 
UX Webinar Series: Drive Revenue and Decrease Costs with Passkeys for Consume...
UX Webinar Series: Drive Revenue and Decrease Costs with Passkeys for Consume...UX Webinar Series: Drive Revenue and Decrease Costs with Passkeys for Consume...
UX Webinar Series: Drive Revenue and Decrease Costs with Passkeys for Consume...
 
Vertex AI Agent Builder - GDG Alicante - Julio 2024
Vertex AI Agent Builder - GDG Alicante - Julio 2024Vertex AI Agent Builder - GDG Alicante - Julio 2024
Vertex AI Agent Builder - GDG Alicante - Julio 2024
 
leewayhertz.com-AI agents for healthcare Applications benefits and implementa...
leewayhertz.com-AI agents for healthcare Applications benefits and implementa...leewayhertz.com-AI agents for healthcare Applications benefits and implementa...
leewayhertz.com-AI agents for healthcare Applications benefits and implementa...
 

Product life cycle

  • 2. Meaning All products have certain length of life during which they pass through certain identifiable stages. The PLC is a conceptual representation of product ageing process. Like your life is divided into stages same as life of a product is also divided. Product start with introduction in the market for the purpose of sale. The demand of that product is gradually increased in the market & it reach to its maximum, from where it start decline. It is effective lifespan of a product.
  • 3. Definitions • Acc to Philip kotler: “The Plc is an attempt to recognize the distinct stages in the sales history of the product.” • Acc to William J. Stanton: “The Product life cycle concept is the explanation of the product from its birth to death as a product exists in different stages & in different competitive environments”
  • 4. Stages of Product life cycle
  • 5. Introduction Stage • It is the 1st stage, wherein the product is launched in the market with full scale production & marketing programme. • The product is a new one. It means “ a product that opens up an entirely new market, replaces an existing product or significantly broadens the market for an existing product.” • In this stage sales grow at a very lower rate because it is not an effective demand.
  • 6. characteristics • Low & slow sales. • High product price. • Heavy promotional expenses. • Lack of knowledge. • Low profits. • Narrow product lines.
  • 7. Growth stage • Once the market has accepted the product, sales begin to rise & product enter its 2nd stage. • The product achieves considerable & widespread approval in the market. The sales & profits increases at an accelerated rate. • In this effective distribution, advertising & sales promotion are considered as the key factors.
  • 8. characteristics • Rapid increase in sales. • Product improvements. • Increase in competition. • Increase in profits. • Reduction in price. • Strengthening the distribution channel.
  • 9. Maturity stage • Market becomes saturated because the household demand is satisfied & distribution channels are full. The product has to face keen competition which brings pressure on prices. Though the sales of the product rises but at a lower rate. Profit margin however decline due to keen competition.
  • 10. characteristics • Sales increases at decreasing rate. • Normal promotional expenses. • Uniform & lower prices. • Product modifications. • Dealer’s support. • Profit margin decreases
  • 11. Decline stage • This is the finial stage, sooner or later actual sales begin to fall under the impact of new product competition & changing consumer behavior. The sales & profits fall down sharply & the promotional expenditure has to be cut down drastically.
  • 12. characteristics • Rapid decrease in sales. • Further decrease in prices • No promotional expenses. • Suspension of production work.
  • 13. Product life cycle for stylish products • A style is the manner in which a product is presented and certain styles come and go. • Acc to Kotler: “ A style is a basic & distinctive mode of expression.” • E.g., Furniture, automobile, clothing, shoes. • The current style for mobile phone is touch screen and this style will last until a new technology style appears. So the shape of a style life cycle is like a wave, as one style fades out, another appears.
  • 14. Product life cycle for fashion products • A fashion refer to a currently accepted style in a specific field. It is a current trend which can have a long or short life cycle. • Fashion tends to grow slowly, remain popular for a while, then decline slowly • The demand for the product increases at a faster rate, reaches to its top & with the change in fashion the product life enter to decline stage. • E.g., readymade garments, purses, bangles, shoes etc
  • 15. Product life cycle for fad products • Fads are fashions that enter quickly with great zeal, peak early & decline very quickly. • A fad is a product that is around for a short period. • E.g., garments, caps, hair style, music albums, films & other fashion products.
  • 16. Features of Product life cycle • Every product has the life cycle as every human being has. • Every product cycle start from an introduction of the product in the market & it is ceased after passing through the market growth & market stages. • It denotes that the product passes from different stages at different speed in course of completing the whole cycle. • The profit of business firm grow rapidly in the stage of growth & starts declining due to competitive conditions at the stage of maturity. However the sales volume go on increasing.
  • 17. Cont’d… • No two products have identical life cycle. • The duration of each stage is different for different products. It depends upon factors(nature of products, technological advancement, competition pressure, etc) • It is not necessary that all products go through all stages, some fail at the initial stage , other may reach maturity stage after a long time. • It provide a useful framework for developing effective marketing strategies in different stages of the product life cycle.
  • 18. Factors affecting The product life cycle • Rate of technological change. • Rate of market acceptance. • Competitor’s entry. • Economic & managerial forces • Risk bearing capacity • Government policy
  • 19. Extension of product life cycle • Product modification. • Entry in the new market. • Promoting frequent use. • Developing different usage. • Finding new uses. • Use of modern advertising & sales promotion techniques.
  • 20. Importance of product life cycle • Helpful in sales forecasting. • Helpful as a predictive tool. • Helpful as a planning tool. • Helpful as a control tool. • Helpful in framing marketing programme. • Helpful in price determination. • Development of new product. • Comparison of different products.
  • 21. Marketing Strategies during PLC Every marketeer tries that his product should stay in the market for the longest period, thus he has to take up various strategies at the different stages of product life cycle. • Introduction stage • Growth stage • Maturity stage • Declining stage
  • 22. Introduction stage • The introduction stage start with the launching of a new product by the marketeer. The product is new one, so sales level is low & profits are negative. • It is very crucial stage for the marketeer because the success or failure of the product is very much determine in this stage. • Strategies:- – Make proper advertising before the product is launched in the market. – Shorten the period of introduction as far as possible.
  • 23. Cont’d… – Heavy advertising & promotional expenses( attractive gifts). – Selective distribution & attractive discount to dealers. – If product is technical then adopt skimming pricing policy & if product is simple then adopt penetration pricing policy.
  • 24. Growth stage • If the new product satisfy the market, it will enter a growth stage in which sales increases at a faster rate. The high profits attract the competitors to enter the market with improved substitute products. Price remains the same or slightly decreased. • Strategies:- – Improve the product quality. – Add new product features & improve the product style. – Enter into new market areas
  • 25. Cont’d… – Reduce the price to attract more number of buyers. – Increase in promotional activities. – Strengthen the distribution channels by increasing the number of retailers. – New version/models, in different sizes & price range are introduced to cater the requirements of different types of buyers. – Create brand image of the product through promotional activities. – Emphasis on customer satisfaction.
  • 26. Maturity Stage • It has a longer duration than the other stages. In this sales increase at a very low rate. The product has to face keen competition. Competitors lower down the price increase their advertising, sales promotion. It increases the profit. • Strategies:- – Improve the quality of the product & introduce some new models. – Give proper attention to increase the usage among the current customers & also pursue some new uses of the product.
  • 27. Cont’d… – Try to convert non-users into users of the product. – Introduce new packaging & wrapper change policy. – Lowering the price to attract more consumer. – Middlemen’s margin is increased, to create the interest. – Give proper emphasis on advertising & promotional programmes. – Change in the style & design of the product. A firm can improve his sales by changing one or more elements of marketing mix. It can reduce the price to attract new users & competitor’s.
  • 28. Declining stage • In this final stage, sales begin to fall & the product is gradually replaced by new innovation. This is because of technical advancement, change in consumer preference, increased competition. For marketeer this stage is very crucial. • Strategies:- – Improve the product in a functional sense. – Review the marketing & production programs. – Emphasis on cost control techniques to generate profits means cut all costs to minimum level.
  • 29. Cont’d… – Economy packs or models may be introduced to revive the market. – Adopt selective promotion of the product to reduce distribution costs. – Packaging may be made more attractive & reusable packages. – R&D efforts are increased to innovate the new product. – Sales incentive schemes are introduced to get dealer’s support.