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The Product Life Cycle Concept Is Based On Four Premises

The document discusses the product life cycle concept which describes how products pass through distinct stages - introduction, growth, maturity, and decline. At each stage, products require different marketing strategies as profits vary. The concept has limitations as the life cycle may not apply to all product classes and cannot predict a product's behavior.

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subham chakraborty
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313 views8 pages

The Product Life Cycle Concept Is Based On Four Premises

The document discusses the product life cycle concept which describes how products pass through distinct stages - introduction, growth, maturity, and decline. At each stage, products require different marketing strategies as profits vary. The concept has limitations as the life cycle may not apply to all product classes and cannot predict a product's behavior.

Uploaded by

subham chakraborty
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

The Product Life Cycle Concept is

Based on Four Premises

Profits from a product


Products have a
vary at different stages
limited life.
in the life cycle.

Product sales pass through


Products require different
distinct stages, each with
strategies at different
different marketing
life cycle stages.
implications.

1-1
Product Life Cycle (PLC)
 Describes the advancement of products through
identifiable stages of their existence.

Introductory Growth Maturity


Decline Stage
Stage Stage Stage

Total
Market
Sales

Time

1-2
The Diffusion Process
Innovators
(2.5%)

Early Adopters
(13.5%)

Early Majority
(34%)

Late Majority
Innovators Early Adopters
Early
Majority
Late
Majority
Laggards
(34%)

"The Chasm" Laggards


(16%)
Technology Adoption Process

1-3
The Diffusion Process

Early Late
Innovators Early Adopters Laggards
Majority Majority

"The Chasm"

Technology Adoption Process

1-4
PLC Length and Shape

Style Fashion Fad

Sales Sales Sales

Time Time Time

1-5
PLC: Characteristics

1-6
PLC Marketing Strategies
Stage Objective Marketing Strategy

Introduction Awareness & trial Communicate benefits

Growth Usage of firm’s brand Specific brand communication,


lower prices, expand distribution

Maturity Maintain market share Sales promotion, drop price,


Extend life cycle expand distribution, new uses
& new versions of product

Decline Decide what to do Maintain, harvest, or divest


with product

1-7
Limitations of the PLC
1. The life cycle concept applies best to product
forms rather than to classes of products or
specific brands.

2. The life cycle concept may lead marketers to think


that a product has a predetermined life, which
may produce problems in interpreting sales and
profits.

3. It is only a descriptive way of looking at the


behavior of a product and the life cycle can not
predict the behavior of a product.
1-8

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