The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara
description
Transcript of The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara
![Page 1: The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara](https://reader035.fdocuments.us/reader035/viewer/2022062717/56812ac2550346895d8e8f2c/html5/thumbnails/1.jpg)
The Product Life Cycle
Presented by : Muhammad Arqum (bsit 06-24)
Presented to : Madam Ammara
![Page 2: The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara](https://reader035.fdocuments.us/reader035/viewer/2022062717/56812ac2550346895d8e8f2c/html5/thumbnails/2.jpg)
The Product Life Cycle
Product development Introduction Growth Maturity Decline
![Page 3: The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara](https://reader035.fdocuments.us/reader035/viewer/2022062717/56812ac2550346895d8e8f2c/html5/thumbnails/3.jpg)
Sales and Profit over the Product’s Life from Inception to Decline
![Page 4: The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara](https://reader035.fdocuments.us/reader035/viewer/2022062717/56812ac2550346895d8e8f2c/html5/thumbnails/4.jpg)
Product Life-Cycle Applications
Product class has the longest life cycle (e.g., gas-powered cars)
Product form tends to have the standard PLC shape (e.g., SUV’s, Sedans)
Brand can change quickly because of changing competitive attacks and responses (e.g.,FORD, Honda)
Style is a basic and distinctive mode of expression (e.g., formal clothing, Danish modern furniture,Classis cars)
Fashion is a popular style in a given field (e.g., business casual)
Fad is a fashion that enters quickly, is adopted quickly, and declines fast (e.g., pet rocks, and virtual pets)
![Page 5: The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara](https://reader035.fdocuments.us/reader035/viewer/2022062717/56812ac2550346895d8e8f2c/html5/thumbnails/5.jpg)
Styles, Fashions, Fads
![Page 6: The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara](https://reader035.fdocuments.us/reader035/viewer/2022062717/56812ac2550346895d8e8f2c/html5/thumbnails/6.jpg)
Practical Problems of PLC
Hard to identify which stage of the PLC the product is in.
Hard to pinpoint when the product moves to the next stage.
Hard to identify factors that affect product’s movement through stages.
Hard to forecast sales level, length of each stage, and shape of PLC.
Strategy is both a cause and result of the PLC.
![Page 7: The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara](https://reader035.fdocuments.us/reader035/viewer/2022062717/56812ac2550346895d8e8f2c/html5/thumbnails/7.jpg)
Introduction Stage of PLC
Sales: low Costs: high cost per customer Profits: negative Marketing Objective: create product awareness Product: offer a basic product Price: Distribution: build selective distribution Promotion: heavy to entice product trial
![Page 8: The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara](https://reader035.fdocuments.us/reader035/viewer/2022062717/56812ac2550346895d8e8f2c/html5/thumbnails/8.jpg)
Growth Stage of PLC
Sales: rapidly rising Costs: average cost per customer Profits: rising Marketing Objective: maximize market share Product: offer extension, service, warranty Price: stay the same or fall Distribution: build intensive distribution Promotion: reduce to take advantage of demand
![Page 9: The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara](https://reader035.fdocuments.us/reader035/viewer/2022062717/56812ac2550346895d8e8f2c/html5/thumbnails/9.jpg)
Maturity Stage of PLC
Sales: peak Costs: low cost per customer Profits: high Marketing Objective: maximize profits while
defending market share Product: diversify brand and models Price: match or best competitors Distribution: build more intensive distribution Promotion: increase to encourage brand switching
![Page 10: The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara](https://reader035.fdocuments.us/reader035/viewer/2022062717/56812ac2550346895d8e8f2c/html5/thumbnails/10.jpg)
Maturity Stage of the PLC
Modifying the Market: Increase the consumption of the current product.
How? Look for new users and market segments. Reposition the brand to appeal to larger or faster-
growing segment. Look for ways to increase usage among present
customers.
![Page 11: The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara](https://reader035.fdocuments.us/reader035/viewer/2022062717/56812ac2550346895d8e8f2c/html5/thumbnails/11.jpg)
Maturity Stage of the PLC
Modifying the Product: Changing characteristics such as quality,
features, or style to attract new users and to inspire more usage.
How? Improve durability, reliability, speed, taste. Improve styling and attractiveness. Add new features. Expand usefulness, safety, convenience.
![Page 12: The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara](https://reader035.fdocuments.us/reader035/viewer/2022062717/56812ac2550346895d8e8f2c/html5/thumbnails/12.jpg)
Modifying the Product
Gillette’s Fusion razor combines a precision trimmer blade (on back) with a five blade shaving surface (on front). The flexible comfort guard and Enhanced Indicator Lubrastrip (containing vitamin E and aloe) enhance shaving comfort.
![Page 13: The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara](https://reader035.fdocuments.us/reader035/viewer/2022062717/56812ac2550346895d8e8f2c/html5/thumbnails/13.jpg)
Maturity Stage of the PLC
Modifying the Marketing Mix: Improving sales by changing one or more
marketing mix elements. How?
Cut prices. Launch a better ad campaign. Move into larger market channels.
![Page 14: The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara](https://reader035.fdocuments.us/reader035/viewer/2022062717/56812ac2550346895d8e8f2c/html5/thumbnails/14.jpg)
Decline Stage of PLC
Sales: declining Costs: low cost per customer Profits: declining Marketing Objective: reduce expenditures and milk
the brand Product: phase out weak items Price: cut price Distribution: selective--phase out unprofitable outlets Promotion: reduce to minimal level
![Page 15: The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara](https://reader035.fdocuments.us/reader035/viewer/2022062717/56812ac2550346895d8e8f2c/html5/thumbnails/15.jpg)
How do you know?
Product development
Introduction Growth Maturity Decline
![Page 16: The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara](https://reader035.fdocuments.us/reader035/viewer/2022062717/56812ac2550346895d8e8f2c/html5/thumbnails/16.jpg)
Product development Introduction Growth Maturity Decline
![Page 17: The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara](https://reader035.fdocuments.us/reader035/viewer/2022062717/56812ac2550346895d8e8f2c/html5/thumbnails/17.jpg)
Discussion
How can marketers help products bounce back from the decline stage?
![Page 18: The Product Life Cycle Presented by : Muhammad Arqum (bsit 06-24) Presented to : Madam Ammara](https://reader035.fdocuments.us/reader035/viewer/2022062717/56812ac2550346895d8e8f2c/html5/thumbnails/18.jpg)
Thanks for your patience.