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    Product Life Cycle - Vivek Singh - 169

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    2007vivek
    The document discusses the product life cycle and strategies companies use at each stage. It explains that a product goes through distinct stages of development, introduction, growth, maturity, and decline. During each stage, sales, costs, and profits follow different patterns. The summary also outlines some key strategies used during the growth stage, such as improving the product, adding new models, entering new markets and distribution channels, and shifting advertising. Finally, it discusses ways to modify a product's market, product characteristics, or marketing programs to change its course.

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    Product Life Cycle - Vivek Singh - 169

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    2007vivek
    34 views15 pages
    The document discusses the product life cycle and strategies companies use at each stage. It explains that a product goes through distinct stages of development, introduction, growth, maturity, and decline. During each stage, sales, costs, and profits follow different patterns. The summary also outlines some key strategies used during the growth stage, such as improving the product, adding new models, entering new markets and distribution channels, and shifting advertising. Finally, it discusses ways to modify a product's market, product characteristics, or marketing programs to change its course.

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    The document discusses the product life cycle and strategies companies use at each stage. It explains that a product goes through distinct stages of development, introduction, growth, maturity, and decline. During each stage, sales, costs, and profits follow different patterns. The summary also outlines some key strategies used during the growth stage, such as improving the product, adding new models, entering new markets and distribution channels, and shifting advertising. Finally, it discusses ways to modify a product's market, product characteristics, or marketing programs to change its course.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    34 views15 pages

    Product Life Cycle - Vivek Singh - 169

    Uploaded by

    2007vivek
    The document discusses the product life cycle and strategies companies use at each stage. It explains that a product goes through distinct stages of development, introduction, growth, maturity, and decline. During each stage, sales, costs, and profits follow different patterns. The summary also outlines some key strategies used during the growth stage, such as improving the product, adding new models, entering new markets and distribution channels, and shifting advertising. Finally, it discusses ways to modify a product's market, product characteristics, or marketing programs to change its course.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 15

    Prepared byVivek Singh Roll no.

    169 IM 18

    A companys positioning and differentiation strategy must change as the product, market, and competitors change over the product life cycle(PLC) When we say that a product has a life cycle we assert four things: i. Products have a limited life. ii. Products sales pass through distinct stages, each posing different challenges, opportunities and problems to the seller. iii. Profits rise and fall at different stages of the product life cycle. iv. Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life cycle stages.

    product life cycle is the course of a products sales and profits over time. product life cycle(PLC) deals with the life of a product in the market with respect to business or commercial costs and sales measures. The five stages of each product lifecycle are product development, introduction, growth, maturity and decline.

    Sales and Profits Profits

    Sales

    Product Development

    Introduction

    Growth

    Maturity

    Time Decline

    Sales and Profits Over the Products Lifetime

    Summary of Characteristics, Objectives, & Strategies


    Sales Costs Profits Marketing Objectives Low High cost per customer Negative Create product awareness and trial

    Product
    Price Distribution

    Offer a basic product


    Use cost-plus formula Build selective distribution Heavy to entice product trial

    Promotion

    Summary of Characteristics, Objectives, & Strategies


    Sales Costs Profits Marketing Objectives Rapidly rising Average cost per customer Rising Maximize market share

    Product
    Price Distribution Promotion

    Offer extension, service, warranty


    Penetration strategy Build intensive distribution

    Reduce to take advantage of demand

    Summary of Characteristics, Objectives, & Strategies


    Sales Costs Profits Marketing Objectives Product Price Distribution Promotion Peak Low cost per customer High Maximize profits while defending market share Diversify brand and models Match or best competitors Build more intensive distribution Increase to encourage brand switching

    Summary of Characteristics, Objectives, & Strategies


    Sales Costs Profits Marketing Objectives Product Price Distribution Promotion Declining Low cost per customer Declining
    Reduce expenditures and milk the brand

    Phase out weak items Cut price


    Selective: phase out unprofitable outlets Reduce to minimum level

    Promotion
    High Low Slowskimming strategy Rapidskimming strategy

    High

    Price
    Low Rapidpenetration strategy Slowpenetration strategy

    During the growth stage, the firm uses several strategies to sustain rapid market growth. Improves product quality and adds new features and improved styling. Adds new models and flanker products(i.e., products of different sizes, flavors, and so forth that protect the main product). It enters new market segments It increases its distribution coverage and enters new distribution channels. It shifts from product- awareness advertising to product- preference advertising. It lowers price to attract the next layer of price sensitive buyers.

    Three potentially useful ways to change the course for a brand are market, product, and marketing program modification. Market Modification Sales volume = no. of brand users * usage rate per user. Expand the no. of brand users Convert nonusers Enter new market segments Attract competitors customers

    Increase the usage rate among users Have consumers use the product on more occasions. Have consumers use more of the product on each occasion Have consumers use the product in new ways. Product modification Trying to stimulate sales by modifying the products characteristics through

    Quality improvement: Aims at increasing the products functional performance. Eg: Aashirvaad, Annapoorna, Pillsbury, Naturefresh Feature improvement Aims at adding new features, such as size, weight, materials, additives, and accessories, that expand the products performance, versatility, safety, or convenience. Style improvement Aims at increasing the products esthetics appeal. Eg; New car models, New Coke

    Increase investment Resolve uncertainties - stable investment Selective niches Harvesting Divesting To establish a system for identifying weak products. Some firms abandon declining markets earlier than others.

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