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Product life cycle F.3 (Product development stages (Stage 1 Introduction…
Product life cycle F.3
Product development stages
Stage 1 Introduction stage
cost have been incurred in getting the product to this stage, marketing costs are generally high in order to test the market. it is highly unlikely that companies will make profit
Product
branding and quality level should be established
Pricing
low, to build sales rapidly
Distribution
it is selective units consumer show acceptance of the product
Promotion
high and investment cost are high
Stage 2 growth stage
is changes by rapid growth stage in sales and profit
Product
quality should be maintained whilist additional features, customer support
Pricing - maintained
Distribution
demand increases
Promotion
may be aimed init a broader audience
Stage 3 Maturity stage
most profit
Product
be enhanced to differentiate
Pricing
may be lowered
distribution
become more intensive
promotion
emphasises product differentiation
Stage 4 Decline stage
shrinking reduces the overall amount of profit
The uses of the product life cycle
Product termination
The PLC am-sizes that nothing is last forever. The PLC underlines the fact that companies have to face the really of the product need to be terminated and new products developed to replace them
Growth Projection
The PLC concept provides the users with warning against the danger of assuming growth will continue forever
Different Marketing objectives and strategies over the PLC
the need to review marketing objectives and strategies as product pass though the various stages
Product Planning
Limitation of the product life cycle
Fads and classics
these products experience phenomenal sales growth followed by a rapid sales collapse, others are resist to enter a decline stage
The result of the marketing effort
sales of a product flatten simply because has not received the marketing effort enough
Unpredictability
the PLC outlines a 4 stages with out stating their duration