PRODUCT LIFE CYCLE

Presented By:GROUP 13

SWATI TIWARISYED AHMAD BILAL

TASLEEM KHANVIVEK MAGNANI

A new product progresses through a sequence of stages from introduction to growth,maturity and decline.

It is associated with changing in marketing situation,thus impacting the marketing strategy and the marketing mix.

INTRODUCTION

High failure rates Little competition Frequent product modification Limited distribution High marketing and production costs Negative profits Promotion focuses on awareness and

information Intensive personal selling to channels

INTRODUCTORY STAGE

Product – Offer a basic product Price – Use cost-plus basis to set Distribution – Build selective distribution Advertising – Build awareness among early

adopters and dealers/resellers Sales Promotion – Heavy expenditures to

create trial

MARKETING STRATEGIES: INTRODUCTORY STAGE

Increasing rate of sales Entrance of competitors Market consolidation Initial healthy profits Promotion emphasizes brand ads Goal is wider distribution Prices normally fall Development costs are recovered

GROWTH STAGE

Product – Offer product extensions, service, warranty

Price – Penetration pricing Distribution – Build intensive distribution Advertising – Build awareness and interest

in the mass market Sales Promotion – Reduce expenditures to

take advantage of consumer demand

Marketing Strategies: Growth Stage

Declining sales growth Saturated markets Extending product line Stylistic product changes Heavy promotions to dealers and

consumers Marginal competitors drop out Prices and profits fall Niche marketers emerge

MATURITY STAGE

Product – Diversify brand and models Price – Set to match or beat competition Distribution – Build more intensive

distribution Advertising – Stress brand differences and

benefits Sales Promotion – Increase to encourage

brand switching

Marketing Strategies: Maturity Stage

Long-run drop in sales Large inventories of

unsold items Elimination of all nonessential

marketing expenses

DECLINE STAGE

RATE OF DECLINE DEPENDS ON CHANGE IN TASTES OR ADOPTION OF SUBSTITUTE

PRODUCTS

Product – Phase out weak items Price – Cut price Distribution – Use selective distribution:

phase out unprofitable outlets Advertising – Reduce to level needed to

retain hard-core loyalists Sales Promotion – Reduce to minimal level

Marketing Strategies: Decline Stage

Modifying the Product Alter product quality Enhance performance Change appearance

Modifying the Market Finding new users Increase use Create new use situations

MANAGING THE PRODUCT LIFE CYCLE

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