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Handwritten Notes, Paper 1, , Paper 2, (Management), , Soft Copy, , ₹ 100, , ₹ 300, , Hard Copy, , ₹ 150, , ₹ 450, , Call or Whatsapp for Notes : 7627096162, Note : Paper 1 includes 7 units except Comprehensions, Numerical Reasoning, and Data Interpretation because these units are practice based and theoretical, part of these units is covered in notes., For hard copies postal/courier charges are separate.

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Product Life Cycle, A company’s positioning and differentiation strategy must change as the product, market, and, competitors change over the product life cycle (PLC). To say a product has a life cycle is to assert, four things :, 1. Products have a limited life., 2. Product sales pass through distinct stages, each posing different challenges, opportunities, and, problems to the seller., 3. Profits rise and fall at different stages of the product life cycle., 4. Products require different marketing, financial, manufacturing, purchasing, and human resource, strategies in each life-cycle stage.

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Product Life Cycle, Most product life-cycle curves are portrayed as bell-shaped. This curve is typically divided into four, stages : introduction, growth, maturity, and decline., , 1. Introduction — A period of slow sales growth as the product is introduced in the market., Profits are nonexistent because of the heavy expenses of product introduction., 2. Growth — A period of rapid market acceptance and substantial profit improvement., 3. Maturity — A slowdown in sales growth because the product has achieved acceptance by most, potential buyers. Profits stabilize or decline because of increased competition., 4. Decline — Sales show a downward drift and profits erode.

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Product Life Cycle

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Product Life Cycle Strategies, Marketing Strategies for Introduction Stage :, Because it takes time to roll out a new product, work out the technical problems, fill dealer pipelines,, and gain consumer acceptance, sales growth tends to be slow in the introduction stage. Profits are, negative or low, and promotional expenditures are at their highest ratio to sales because of the need, to,  inform potential consumers,,  induce product trial, and,  secure distribution in retail outlets., Firms focus on buyers who are the most ready to buy. Prices tend to be higher because costs are, high. Companies that plan to introduce a new product must decide when to enter the market. To be, first can be rewarding, but risky and expensive. To come in later makes sense if the firm can bring, superior technology, quality, or brand strength to create a market advantage.

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Product Life Cycle Strategies, Marketing Strategies for Growth Stage : To sustain rapid market share growth now, the firm :,  Improves product quality and adds new features and improved styling.,  Adds new models and flanker products (of different sizes, flavors, and so forth) to protect the, main product.,  Enters new market segments.,  Increases its distribution coverage and enters new distribution channels.,  Shifts from awareness and trial communications to preference and loyalty communications.,  Lowers prices to attract the next layer of price-sensitive buyers.

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Product Life Cycle Strategies, Marketing Strategies for Maturity Stage : At some point, the rate of sales growth will slow, and the product will, enter a stage of relative maturity. Most products are in this stage of the life cycle, which normally lasts longer than, the preceding ones., Market Modification : A company might try to expand the market for its mature brand by working with the two, factors that make up sales volume : Volume = number of brand users × usage rate per user, as but may also be, matched by competitors., Product Modification : Managers also try to stimulate sales by improving quality, features, or style. Quality, improvement increases functional performance by launching a “new and improved” product. Feature improvement, adds size, weight, materials, supplements, and accessories that expand the product’s performance, versatility,, safety, or convenience. Style improvement increases the product’s esthetic appeal. Any of these can attract, consumer attention., Marketing Program Modification : Finally, brand managers might also try to stimulate sales by modifying non, product elements—price, distribution, and communications in particular. They should assess the likely success of, any changes in terms of effects on new and existing customers.

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Product Life Cycle Strategies, Marketing Strategies for Declining Stage : Sales decline for a number of reasons, including, , technological advances, shifts in consumer tastes, and increased domestic and foreign competition., All can lead to overcapacity, increased price cutting, and profit erosion., As sales and profits decline over a long period of time, some firms withdraw. Those remaining may, reduce the number of products they offer, withdrawing from smaller segments and weaker, trade channels, cutting marketing budgets, and reducing prices further. Unless strong reasons, for retention exist, carrying a weak product is often very costly., Besides being unprofitable, weak products consume a disproportionate amount of management’s, time, require frequent price and inventory adjustments, incur expensive setup for short production, runs, draw advertising and sales force attention better used to make healthy products more, profitable, and cast a negative shadow on company image. Failing to eliminate them also delays the, aggressive search for replacement products, creating a lopsided product mix long on yesterday’s, breadwinners and short on tomorrow’s.

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Summery of Product Life Cycle

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