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Product Life Cycle
4 Stages of a Product Life Cycle
Product life cycles are based on the
biological life cycle an example:
• Introduction
Seed is planted
• Growth
It sprouts
• Maturity
Plant puts down roots and grow
leaves
• Decline
After period as an adult plant it
dies
Graphic Representation of a Product Life Cycle
• http://www.marketingteacher.com
/Lessons/lesson_plc.htm
Introduction
Companies seek to develop product awareness
and a market for the product through:
• Product Branding and Quality Level –
intellectual property protection, patents, and
trademarks
• Pricing – is very competitive to establish a
market product
• Distribution – Selective until a demand or want
is established for product
• Promotion – aimed ant innovators and early
adopters. Marketing is aimed to educate
consumers and build product awareness.
http://www.quickmba.com/marketing/product/l
ifecycle/
Growth Stage
In the Growth Stage Companies try to
build brand preference and build market
share for their product.
• Product quality is maintained
• Pricing is maintained as the demand
increases with little competition. Profits
rise
• Distribution channels are added to
increase product delivery to market.
• Promotion is directed at a wider buying
market.
http://www.quickmba.com/marketing/pr
oduct/lifecycle/
Maturity Stage
In the maturity stage sales growth for the
product begins to slow. Competitive products
begin to appear. Primary objective is to defend
market share.
• Product features are added to keep the
product different from the competition
• Pricing is lower because of new competition.
Demand starts to ease toward end of this
stage.
• Distribution is intense and has incentives are
offered to maintain market share.
• Promotion stresses difference from other
products
http://www.quickmba.com/marketing/product/
lifecycle/
Decline Stage
A the sales of the product continue to
decline the company has three options
• Maintain the product by adding features
to attempt to revive sales.
• Harvest the product –reduce the cost
and try to maintain product for a niche
market of loyal customers.
• Discontinue the product, liquidating
remaining inventory, or sell to another
company that may maintain or continue
the product.
http://www.quickmba.com/marketing/
product/lifecycle/
Examples of Different Stages of the Product life
Cycle
Introduction
Growth
Maturity
Decline
Third generation
Mobile Phones
Portable DVD
Players
Personal
Computers
Typewriters
E-Conferencing
E-Mail
Faxes
Hand Written
Letters
All-in-one
Racing Skin
Suits
Breathable
Synthetic
Fabrics
Cotton T Shirts
Shell Suits
Iris-Based
Personal
Identity Cards
Smart Cards
Credit Cards
Check Books
http://www.tutor2u.net/business/marketing/products_lifecycle.asp