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    Prasanta Chopdar

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    Janarthanan Siva Kumar
    The document discusses the product life cycle concept including the stages a product goes through from introduction to decline. It covers levels of aggregation, factors influencing sales patterns, trends in time to maturity, alternate patterns, and marketing strategies for each stage.

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    Prasanta Chopdar

    Uploaded by

    Janarthanan Siva Kumar
    16 views25 pages
    The document discusses the product life cycle concept including the stages a product goes through from introduction to decline. It covers levels of aggregation, factors influencing sales patterns, trends in time to maturity, alternate patterns, and marketing strategies for each stage.

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    Session-21

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    The document discusses the product life cycle concept including the stages a product goes through from introduction to decline. It covers levels of aggregation, factors influencing sales patterns, trends in time to maturity, alternate patterns, and marketing strategies for each stage.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    16 views25 pages

    Prasanta Chopdar

    Uploaded by

    Janarthanan Siva Kumar
    The document discusses the product life cycle concept including the stages a product goes through from introduction to decline. It covers levels of aggregation, factors influencing sales patterns, trends in time to maturity, alternate patterns, and marketing strategies for each stage.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 25

    Prasanta Chopdar

    Product Life Cycle (PLC)


    • One of the most important concept in marketing, T. Levitt (1965)

    • It describes the various phases the product goes through from


    introduction to final withdrawal.

    • Helps marketers in formulating 4 P strategies.


    PLC
    Levels of Aggregation
    • Category- All products that essentially satisfy some common needs.
    Exp. Automobiles/computers/cameras
    • Sub-category- Sub group of products that are similar. Exp.
    Automobiles (Sports cars, Luxury cars, Compact cars), Computers
    (Mainframe, Super, Personal Computers)
    • Brand- Maruti-Suzuki, Jaguar, Ferrari
    • Model- Alto/Dzire/Baleno/Swift/Omni/Ertiga/Celerio
    Factors influencing sales patterns
    • Market potential factors
    ➢Population size, Income levels
    ➢Need for product, Consumers knowledge about product
    ➢Desire, usage/replacement rates
    • Competitors efforts
    ➢Product development/design
    ➢Distribution
    ➢Advertising/promotion
    ➢Pricing
    1. Introduction
    • It may follow years of R&D
    • Customers fearful of buying
    • Producers unsure of strategy
    • Few designs
    • Advertising to build awareness
    • Personal selling needed
    • Price may not cover total costs
    • It can be longer…………
    2. Early Growth
    • Increasing sales and growth
    • Attracts competitors
    • New distribution channels
    • Promotional expenses more
    • Advertising for brand differentiation
    • Economies of scale- price falls
    3. Late Growth
    • Sales rise/growth rate declines
    • Product modification/improvement
    • Price cutting
    • Warranties/credit facilities/liberal service policies
    • Broad distribution
    4. Maturity
    • Sales growth terminates
    • Attempt to segment market
    • Distribution critical
    • Difficult to enter market
    5. Decline
    • Decrease in sales
    • Growth of new substitute product
    • Over capacity/ excess costs/higher prices
    • Marketing expenditures less
    • Promotion shift from mass media to specialized media
    Trends in time to maturity
    • 1920-30, intro-maturity- 34 yrs

    • 1940-50, intro-maturity- 22 yrs

    • 1960-70, intro-maturity- 8 yrs

    • Implications?

    • Roger’s DOI model, 1962


    Profit Life Cycle
    Alternate Patterns of PLC
    Style, Fashion and Fad Life Cycles
    Marketing Strategies
    • Introduction
    ➢Inform potential customers
    ➢Induce trial
    ➢Secure distribution
    ➢Pioneer/follower
    Marketing Strategies
    • Growth
    ➢Improve product quality, new features
    ➢Add new models, flanker brands
    ➢Enter new segments
    ➢Increase distribution, add new channels
    ➢Lower prices
    Marketing Strategies
    • Maturity
    ➢Market modification
    ➢Product modification
    ➢Marketing program modification
    Marketing Strategies
    • Decline
    ➢Eliminate weak products
    ➢Harvesting/divesting

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