Product Life Cycle : Rojhe 1 Product Life Cycle School of Business Management
(SILB)
Points to ponder: : Rojhe 2 Points to ponder: Products have limited life
Product sales pass through different stages
Profits rise & fall in different stages
Strategies vary in different stages
Slide 3 : Rojhe 3 Sales / Profits Time Introduction Growth Maturity Decline Saturation Point Sales Profits
Introduction Stage : Rojhe 4 Sales Costs Profits Marketing Objectives Product Price Low sales High cost per customer Negative Create product awareness
and trial Offer a basic product Use cost-plus Distribution Build selective distribution Advertising Build product awareness among early adopters and dealers Introduction Stage
Marketing Strategies in Introduction stage : Rojhe 5 Marketing Strategies in Introduction stage
Slide 6 : Rojhe 6 Sales Costs Profits Marketing Objectives Product Price Rapidly rising sales Average cost per customer Rising profits Maximize market share Offer product extensions, service, warranty Price to penetrate market Distribution Build intensive distribution Advertising Build awareness and interest in the mass market Growth Stage
Marketing Strategies in Growth stage : Rojhe 7 Marketing Strategies in Growth stage Improvement of product quality & add features
Addition of new models
Entrance into new markets
Increase distribution channels & reach
Lower price to attract new buyers
Slide 8 : Rojhe 8 Sales Costs Profits Marketing Objectives Product Price Peak sales Low cost per customer High profits Maximize profit while defending
market share Diversify brand and models Price to match or best competitors Distribution Build more intensive distribution Advertising Stress brand differences and benefits Maturity Stage
Strategies in maturity Stage : Rojhe 9 Strategies in maturity Stage
Slide 10 : Rojhe 10 Sales Costs Profits Marketing Objectives Product Price Declining sales Low cost per customer Declining profits Reduce expenditure and milk the brand Phase out weak items Cut price Distribution Go selective: phase out unprofitable outlets Advertising Reduce to level needed to retain
hard-core loyal customers Decline Stage
Strategies in Decline Stage : Rojhe 11 Strategies in Decline Stage
Slide 12 : Rojhe 12 Doubts & Clarifications?