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