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A brief description of any general product life cycle
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PRODUCT LIFE CYCLE
Rishabh Kaushik1006447089
WHAT IS A PRODUCT?
A PRODUCT is anything that can be offered to a market usually to satisfy a want or need
CATEGORIES
There are 4 general categories of ‘products’ that are marketed:
• Goods
• Services
• Places
• Persons
PRODUCT LIFE CYCLE
• Every PRODUCT has a life cycle and asserts four things about a PRODUCT
PRODUCTS have a limited life PRODUCT sales pass through different stages each
posing different challenges, opportunities n problems to the seller
Profits rise n fall at different stages PRODUCTS require different marketing, financial,
purchasing strategies at each stage
Product Life Cycle....No of sales
Time lineResearch & Development (R&D)
Launch / Introduction
Growth
MaturitySaturation
Decline
PRODUCT LIFE CYCLE......
RESEARCH AND DEVELOPMENT PHASE
• Begins when the company develops a new-product idea
• Sales are zero
• Investment costs are high
• Profits are negative
PRODUCT LIFE CYCLE......
INTRODUCTION PHASE
• Low sales
• Prices tend to be high because costs are high
• Negative profits
• Innovators are targeted
• Little competition
PRODUCT LIFE CYCLE......
GROWTH PHASE
• Sales rapidly rise
• Prices remain where they are, or fall slightly
• Rising profits
• Promotional expenditure may increase or decrease depends upon competition
• New customers also start buying
• Growing competition
PRODUCT LIFE CYCLE......
MATURITY PHASE
• Usually lasts longer than previous stages
• Divided into three phases:
1. Growth-sales growth rate starts to decline
2. Stable-sales flatten because of market saturation
3. Decaying maturity-the absolute level of sales begin to decline and customers start switching to other products
PRODUCT LIFE CYCLE......
DECLINE PHASE
•Sales and profits decline
•Some companies withdraw their products from market
•Those remaining reduce number of products
•High prices on spare parts
•Focuses on cost reduction
MARKETING STRATEGY
INTRODUCTION PHASE
• Rapid-skimming strategy (high price/high promotion).
• Slow-skimming strategy (high price/low promotion).
• Rapid-penetration strategy (low price/high promotion).
• Slow-penetration strategy (low price/low promotion).
MARKETING STRATEGY
GROWTH PHASE
• Improve service quality and add new service features and elements
• Enter new market segments
• Use new channels of distribution
• Lower prices to attract more price-sensitive customers
• Shift from product awareness advertising to product-preference advertising
MARKETING STRATEGY
MATURITY PHASE
1. Market-modification strategy
• Increase frequency use by current consumers
• Look for new target market
2. Product-modification strategy
• Quality improvement
• Feature improvement
MARKETING STRATEGY
DECLINE PHASE
• Reduce cost
• Reduce price
• Phase out weak items
• Include special offers
