Pdt Life Cycle

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Product life cycle

Bhawna Sharma

Sr. Lecturer, Amity



PRODUCT LIFE CYCLE

The Product Life Cycle ( PLC ) is animportant concept in marketing that

provides insights into a product’scompetitive dynamics.



Product Life Cycle

Time

ProductDevelop-

ment

Introduction

Profits

Sales

Growth Maturity Decline

Losses/Investments ($)

Sales andProfits ($)



PRODUCT LIFE CYCLE

Reasons for change in behavior of PLC :

--Changes in the consumer needs and

preferences --Advancing Technology

--Competition, Government Policies etc.

--Changes in number of potential buyersStages in PLC :

Introduction, Growth, Maturity, And Decline.



Introduction Stage of the

PLC

Sales

Costs

Profits

Marketing Objectives

Product

Price

Low sales

High cost per customer

Negative

Create product awarenessand trial

Offer a basic product

Use cost-plus

Distribution Build selective distribution

Advertising Build product awareness among earlyadopters and dealers



Growth Stage of the PLC

Sales

Costs

Profits


Product

Price

Rapidly rising sales

Average cost per customer

Rising profits

Maximize market share

Offer product extensions, service,warranty

Price to penetrate market

Distribution Build intensive distribution

Advertising Build awareness and interest in themass market



Maturity Stage of the PLC

Sales

Costs

Profits


Product

Price

Peak sales

Low cost per customer

High profits

Maximize profit while defendingmarket share

Diversify brand and models

Price to match or best competitors

Distribution Build more intensive distribution

Advertising Stress brand differences and benefits



Decline Stage of the PLC

Sales

Costs

Profits


Product

Price

Declining sales

Low cost per customer

Declining profits

Reduce expenditure and nourish thebrand

Phase out weak items

Cut price

Distribution Go selective: phase out unprofitableoutlets

Advertising Reduce to level needed to retainhard-core loyal customers



Relationship between Advertising and the Product Life Cycle

Pioneering

CompetitiveComparative



Management of the Cycle

Pricing, Distribution & Product characteristicsalso tend to change with change in stage ofProduct life Cycle.



Extending the PLC



Extending the PLC

Product Life Cycle can be extended invarious ways depending on the product.

A branded good can enjoy continuous

growth, such as Microsoft, because theproduct is being constantly improved &advertised, & maintains a strong brand loyalty



Extending the PLC

EXTENSION STRATEGIES extend the life ofthe product before it goes into decline.

Marketers use various techniques to improve

sales.



Extending the PLC

ADVERTISING- Try to gain a new audience orremind the current audience.

PRICE REDUCTION- More attractive tocustomers.

ADDING VALUE- Add new features to the currentproduct.

EXPLORE NEW MARKETS- Try selling in different

countries.

NEW PACKAGING- Brightening up old packaging,or subtle changes.



Extending the PLC

In case of Pharmaceutical products, a productcan be repositioned in a different segment of themarket, where the products formulation can bealtered, without changing brand name, & then adifferent section of customers can be targeted.

PLC can also be extended by finding out newer

uses for the product. These uses can extend theGrowth stage further before going into theMaturity stage.

Pdt Life Cycle

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