forgot the product life concept
TRANSCRIPT
![Page 1: Forgot the product life concept](https://reader035.vdocuments.us/reader035/viewer/2022070518/58e752ff1a28ab55108b4895/html5/thumbnails/1.jpg)
SUBMITTED BY:- Sourabh Meena Arshdeep Singh
PRODUCT LIFE CYCLE
![Page 2: Forgot the product life concept](https://reader035.vdocuments.us/reader035/viewer/2022070518/58e752ff1a28ab55108b4895/html5/thumbnails/2.jpg)
• INTRODUCTION• The International product life cycle, developed by the economist Raymond Vernon in 1966.
• Each product has a certain life cycle that begins with its development and ends with its decline within four stages “introduction”, “growth”, “maturity” and “decline”.
• The Product Life Cycle (PLC) is based upon the biological life cycle.
![Page 3: Forgot the product life concept](https://reader035.vdocuments.us/reader035/viewer/2022070518/58e752ff1a28ab55108b4895/html5/thumbnails/3.jpg)
Ideal Shape Of PLC
![Page 4: Forgot the product life concept](https://reader035.vdocuments.us/reader035/viewer/2022070518/58e752ff1a28ab55108b4895/html5/thumbnails/4.jpg)
Stages Of PLCSTAGES OF PLC
Introduction Stage –oCould be the most expensive.
oMarket Share is small.
oHigh Cost of launch .
o No profit generally.
Growth Stage –
oStrong growth in sales and profits.
oProfit will increase.
oPromotional activity to maximize the potential of this growth stage.
![Page 5: Forgot the product life concept](https://reader035.vdocuments.us/reader035/viewer/2022070518/58e752ff1a28ab55108b4895/html5/thumbnails/5.jpg)
Maturity Stage –
oThe product is established
oMaintain the market share.
oMost competitive time for most products.
oNeed to do improvement and modifications.
Decline Stage – oMarket share start to shrink, oNeeds innovation. oBrand loyalty may give profit longer.
oPrice reduction and Advertisement.
![Page 6: Forgot the product life concept](https://reader035.vdocuments.us/reader035/viewer/2022070518/58e752ff1a28ab55108b4895/html5/thumbnails/6.jpg)
•
![Page 7: Forgot the product life concept](https://reader035.vdocuments.us/reader035/viewer/2022070518/58e752ff1a28ab55108b4895/html5/thumbnails/7.jpg)
The product life cycle myth• It is a myth that every product has to go through each of the stages of the product life cycle.
• The duration depends on demand, production costs and revenues.
• Some products move through the life cycle much faster than others.
• Although decline can be avoided by reinventing elements of the product.
• No Life cycles for Brands.
![Page 8: Forgot the product life concept](https://reader035.vdocuments.us/reader035/viewer/2022070518/58e752ff1a28ab55108b4895/html5/thumbnails/8.jpg)
![Page 9: Forgot the product life concept](https://reader035.vdocuments.us/reader035/viewer/2022070518/58e752ff1a28ab55108b4895/html5/thumbnails/9.jpg)
Blunders due to PLC
• Management believes Products in dying stage.
• PLC is Dependent variable.
• Maturities period may not be Extended.
![Page 10: Forgot the product life concept](https://reader035.vdocuments.us/reader035/viewer/2022070518/58e752ff1a28ab55108b4895/html5/thumbnails/10.jpg)
THEORY CHALLENGED• Many products have been around for generations, and show no signs of decline
or death.• Their survival is a function of keen attention to brand identity and equity. • Companies that nurture consumers' impressions of the value the product delivers
year after year can stave off indefinitely its demise..
![Page 11: Forgot the product life concept](https://reader035.vdocuments.us/reader035/viewer/2022070518/58e752ff1a28ab55108b4895/html5/thumbnails/11.jpg)
Products That Defy the Theory• American Express• Budweiser• Camel• Coca-Cola• Western Union • Wells-Fargo • Brands that have died can be reincarnated, though perhaps in more limited
distribution.
![Page 12: Forgot the product life concept](https://reader035.vdocuments.us/reader035/viewer/2022070518/58e752ff1a28ab55108b4895/html5/thumbnails/12.jpg)
Customer Equity
• Much more predictive method.• Customer equity is the lifetime value of all a brand's customers. • The more equity relative to its competitors, the longer it is likely to live.• If a brand has weak equity, marketing managers know it needs serious marketing
attention to make it healthy again.
![Page 13: Forgot the product life concept](https://reader035.vdocuments.us/reader035/viewer/2022070518/58e752ff1a28ab55108b4895/html5/thumbnails/13.jpg)