Summary of Product Life Cycle
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The document summarizes the product life cycle concept, which includes four main stages: introduction, growth, maturity, and decline. It describes the characteristics, objectives, and marketing strategies for each stage. In the introduction stage, sales and profits are low as awareness is built. In growth, sales rapidly increase while costs decrease. Maturity sees peak sales and profits. Finally, decline is when sales and profits begin to drop off. The document provides details on customers, competitors, and optimal strategies for each phase.
Summary of Product Life Cycle
- 2. PLC’s lack fixed sequence of stages PLC’ lack a fixed length of each stage Marketers can seldom tell what stage the product is in Critique
- 3. Summary of Product Life- Cycle Characteristic, Objectives, and Strategies Introduction Growth Maturity Decline
- 4. Sales Cost Profits Introduction Low sales High cost per customer Negative Growth Rapidly rising sales Average cost per customer Rising profits Maturity Peak sales Low cost per customer High profits Decline Declining sales Low cost per customer Declining profits Characteristics
- 5. Customers Competitors Innovators Few Early adopters Growing number Middle majority Stable number beginning to decline Laggards Declining number Objectives Create product awareness and trial Maximize market share Maximize profit while defending market share Reduce expenditure and milk the brand
- 6. Strategies Product Price Distribu- tion Introduction Offer a basic product Charge cost-plus Build selective distribution Growth Offer product extensions, service, warranty Price to penetrate market Build intensive distribution Maturity Diversify brands and items Price to match or best competitors Build more intensive distribution Decline Phase out weak models Cut price Go selective: phase out unprofitable outlets
- 7. Advertising Sales promotion Build product awareness Among early adopters and dealers Use heavy sales promotion to entice trial Build awareness and interest in the mass market Reduce to take advantage of heavy consumer demand Stress brand difference s and benefits Increase to encourag e brand switching Reduce to level needed to retain hard-core loyals Reduce to minimal level