Product Life Cycle Product Every Life Cycle PLC

Product Life Cycle ® Product ® Every Life Cycle (PLC): product goes through a life cycle from development to decline ® Each life cycle is different ® Some products have longer lifecycles than others

Product Life Cycle ® Marketing becomes more effective if business understand the product life cycle ® A business can manage cash flow more effectively if they understand the product life cycle

Product Life Cycle ® The Stages of the Product Life Cycle: ® Development ® Introduction/Launch ® Growth ® Maturity ® Saturation ® Decline

Product Life Cycle Sales Development Introduction Growth Maturity Saturation Decline Time

Product Life Cycle ® The Research & Development Stage: ® Initial ® Ideas – possibly large number At this stage there are high costs and no revenue – therefore the company is making a large loss

Product Life Cycle ® Introduction/Launch: ® Advertising and promotion campaigns ® Target campaign at specific audience? ® Monitor initial sales ® Maximise publicity ® High cost ® Low sales ® Firm still making losses

Product Life Cycle ® Growth: ® Increased ® Sales consumer awareness rise ® Revenues increase ® Profits may be made ® Monitor market – competitors reaction?

Product Life Cycle ® Maturity: ® Sales reach peak ® Cost of supporting the product declines ® Market share may be high ® Competition likely to be greater ® Monitor market – changes/amendments/new strategies?

Product Life Cycle ® Saturation: New entrants likely to mean market is ‘flooded’ ® Necessity to develop new strategies. ® Sales and profits falling. ® ® Decline and Withdrawal: Product outlives/outgrows its usefulness/value ® Fashions change ® Better products appear ® Sales decline ®