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Product Life Cycle Slide 1 Product Life Cycle Slide 2 Product Life Cycle Slide 3 Product Life Cycle Slide 4 Product Life Cycle Slide 5 Product Life Cycle Slide 6 Product Life Cycle Slide 7 Product Life Cycle Slide 8 Product Life Cycle Slide 9 Product Life Cycle Slide 10 Product Life Cycle Slide 11 Product Life Cycle Slide 12 Product Life Cycle Slide 13 Product Life Cycle Slide 14 Product Life Cycle Slide 15 Product Life Cycle Slide 16 Product Life Cycle Slide 17 Product Life Cycle Slide 18 Product Life Cycle Slide 19
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Product Life Cycle

The product life cycle is an important concept in marketing. It describes the stages a product goes through from when it was first thought of until it finally is removed from the market. Not all products reach this final stage.

PLC is clearly explained with relevant examples of various products and their life cycles

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Product Life Cycle

  1. 1. PRODUCT LIFE CYCLE
  2. 2. CONTENTS Introduction Concept Stages - Introduction - Growth - Maturity - Decline PLC Graph Examples Conclusion
  3. 3. INTRODUCTION  We're regularly bombarded by advertisements telling us about exciting new features of existing products.  Yet, at the same time, if we go to the shops, there are hundreds of products which are seemingly not advertised at all.  Why are some established products regularly given make-overs, while others are apparently left to sell themselves?
  4. 4. CONCEPT  The theory of a PLC was first introduced in the 1950s to explain the expected life cycle of a typical product from design to obsolescence. It is the cycle through which every product goes from introduction to withdrawal or eventual demise.  The goal of managing a product's life cycle is to maximize its value and profitability at each stage.  This concept may apply to a brand or to a category of product.  Duration may be short as a month or two for a fad item or a century or more for product categories such as gasoline powered automobile.
  5. 5. STAGES  Just as people go through infancy, childhood, adulthood and old age, so too do products and brands. And just as we swing from being needy, to being overall contributors to our families or to society, and then back to being needy again over the course of our lives, so – in effect – do products.  The four phases of product's life cycle are – 1) Introduction 2) Growth 3) Maturity 4) Decline
  6. 6. INTRODUCTION STAGE  This is the stage where a product is conceptualized and first brought to MARKET. The goal of any new product introduction is to meet consumers' needs with a quality product at the lowest possible cost in order to return the highest level of profit.  Sales may be slow as the company builds awareness of its product among potential customers.  Advertising is crucial at this stage, so the marketing budget is often substantial.  Techniques used to exploit early stages make use of penetration pricing and skimming pricing.
  7. 7. GROWTH STAGE  The growth phase occurs when a product has survived its introduction and is beginning to be noticed in the marketplace.  This is the boom time for any product. Production increases, leading to lower unit costs.  Sales momentum builds as advertising campaigns target mass media audiences instead of specialized MARKETS (if the product merits this).  Competition grows as awareness of the product builds. Minor changes are made as more feedback is gathered or as new markets are targeted.  The goal for any company is to stay in this phase as long as possible.
  8. 8. MATURITY STAGE  Sales growth starts to slow down and will approach the point where the inevitable decline will begin.  Marketing staffs have to spend more and more on promotion to entice customers to buy the product.  More competitors steps forward to challenge the product at this stage.  The maturity stage is usually the longest of the four life cycle stages, and it is not uncommon for a product to be in the mature stage for several decades. From a marketing standpoint, experts argue that the right promotion can make more of an impact at this stage than at any other. One popular theory postulates that there are two primary marketing strategies to utilize at this stage—offensive and defensive.
  9. 9. DECLINE STAGE This occurs when the product peaks in the maturity stage and then begins a downward slide in sales. Eventually, revenues will drop to the point where it is no longer economically feasible to continue making the product. Investment is minimized. The product can simply be discontinued, or it can be sold to another company. A third option that combines those elements is also sometimes seen as viable, but comes to fruition only rarely. Under this scenario, the product is discontinued and stock is allowed to dwindle to zero, but the company sells the rights to supporting the product to another company, which then becomes responsible for servicing and maintaining the product.
  10. 10. EXAMPLE 1 – Coca Cola
  11. 11. EXAMPLE 2 - Cadbury
  12. 12. EXAMPLE 3 - Nokia
  13. 13. CONCLUSION  Every product has got a life cycle and every product will pass through the stage of decline some day.  Through effective product line decisions and other strategies, we can extend its profitability period much longer to our benefits.
  14. 14. Shanmukha Priya Chadarada
  • VarshaVerma44

    May. 30, 2020
  • ShahridShafi

    Sep. 15, 2018

The product life cycle is an important concept in marketing. It describes the stages a product goes through from when it was first thought of until it finally is removed from the market. Not all products reach this final stage. PLC is clearly explained with relevant examples of various products and their life cycles

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