1. PRODUCT PUBLISHING, DELIVERING AND
MARKETING
(MARKETING MANAGEMENT)
SRI LANKA INSTITUTE OF INFORMATION
TECHNOLOGY
BSC (IT) SPECIALIZING IN MULTIMEDIA – FINAL YEAR
VIDYAS G.
IT 11 6086 46

2.  Product Life Cycle Shows the stages
that products go through from
development to withdrawal from
the market

3.  A product is the item offered for
sale. A product can be a service or
an item.
 The price that can be charged
depends on the market, the
quality, the marketing and the
segment that is targeted.

4.  The Product Life Cycle (PLC) is used
to map the lifespan of a product.
 There are generally four stages in
the life of a product.
 These four stages are,




Introduction stage
Growth stage
Maturity stage
Decline stage
 The following graph illustrates the
four stages of the PLC

5.  Not all products follow this
cycle:
 Fads
 Styles
 Fashions
 The product life cycle concept can
be applied to a:
 Product class
 Product form
 Brand

6. 




New Product Entrants
Establishing Preference
Competing in a Crowded Market
Maintaining Awareness
Backing Off and Starting Over

7.  The introduction stage of
the product life cycle is where
a new product is launched into a
market.
 Begins when the company
develops a new-product idea
 Sales are zero
 Investment costs are high
 Profits are negative

8.  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

9.  In the growth stage of the product
life cycle, the market has accepted
the product and sales begin to
increase.
 Low sales
 High cost per customer acquired
 Negative profits
 Innovators are targeted
 Little competition

10.  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

11.  In the maturity stage of the
product life cycle, sales
will reach their peak.
 Sales peak
 Low cost per customer
 High profits
 Middle majority are targeted
 Competition begins to decline

12.  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

13.  In the decline stage of the product
life cycle, sales will begin to decline
as the product reaches its
saturation point.
 Declining sales
 Low cost per customer
 Declining profits
 Laggards are targeted
 Declining competition

14.  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