Download MARKETING ASSIGNMENT FINAL

Advanced Diploma in Business Administration
Programme 4
Marketing Assignment
The Role of the Product Life Cycle
in Service Portfolio Management
Author
Michael Ward
May 2000
Marketing Assignment
[Client] Confidential
Executive Summary
As a result of a strategic drive to reduce complexity, CLIENT_TS has revised its service portfolio.
This target portfolio contains ten standard IT services plus a further three services that have been
identified for development. The focus of the new portfolio is simplicity. Services are offered in their
basic form only, but can be combined to create integrated solutions. This document addresses the
concept of product lifecycle management as a tool that CLIENT_TS can use to manage this new
service portfolio, to ensure that:

Services remain “standard” so that the core strategy of simplicity is not diluted

Services remain fit for purpose.
The Product Lifecycle (PLC) is a term given to a chart that follows the course of a product’s or
service’s life through a series of life “stages”, namely development, introduction, growth, maturity and
decline. The document identifies that there are three main uses of the PLC in service portfolio
management, namely:

Awareness of “Product Levels”
Three product levels exist – product class (“soft drinks”), product form (“cola”) and product brand
(“Pepsi”). The document finds that awareness of these levels can help an organisation to manage
its services by making it aware of longer term changes in the market place – managing a product
“brand”, for instance, needs to be done in context of the lifecycle of the product “form”.

Setting Service Strategy
The PLC can play an important role in setting service strategy. The document demonstrates how
the PLC can be integrated with product portfolio theories such as the Boston Consulting Group’s
“Growth/Share Matrix” to provide indicators of the most appropriate strategies to use.

Product Development
The PLC, when combined as a portfolio, can be used to identify opportunities to start product
development, so that the new service reaches maturity as the old one would have declined.
The document highlights various issues relating to the use of PLCs in organisations, such as the
difficulties of knowing exactly where in its life cycle a product is and as a result basing strategies on
the wrong positioning.
However, the document finds that the product lifecycle is a powerful tool for CLIENT_TS to use in
managing its services, and recommends that it be considered along with demand forecasting,
benchmarking, performance and cost management as part of an integrated service portfolio
management strategy.
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Table of Contents
INTRODUCTION .............................................................................................................. 1
DEFINITION OF PRODUCT LIFECYCLE MANAGEMENT .................................................... 2
THE APPLICATION OF PRODUCT LIFECYCLE MANAGEMENT .......................................... 3
THE VALIDITY OF PRODUCT LIFECYCLE MANAGEMENT ............................................... 9
CONCLUSIONS & RECOMMENDATIONS ........................................................................ 11
REFERENCES ................................................................................................................ 13
BIBLIOGRAPHY ............................................................................................................ 14
APPENDIX 1: A BRIEF OVERVIEW OF CLIENT_TS SERVICES.................................... A-1
APPENDIX 2: ALTERNATIVE PRODUCT LIFECYCLE CURVE SHAPES ........................... A-2
Index of Figures
FIGURE 1: THE PRODUCT LIFECYCLE ............................................................................. 2
FIGURE 2 : CHARACTERISTICS OF PLC STAGES .............................................................. 3
FIGURE 3: EXAMPLES OF PLC "LEVELS"........................................................................ 4
FIGURE 4: PLCS FOR TELEPHONY (“PRODUCT FORM”) AND CLEARWAY
(“BRAND”) IN CLIENT_TS .......................................................................... 5
FIGURE 5: THE BCG GROWTH/SHARE MATRIX ............................................................. 5
FIGURE 6: COMBINED PLC/PRODUCT PORTFOLIO CONCEPTS ........................................ 6
FIGURE 7: STRATEGIES THROUGH THE PRODUCT LIFECYCLE ......................................... 7
FIGURE 8: CLIENT_TS SERVICE LIFECYCLE POSITIONING ........................................... 7
FIGURE 9: PRODUCT BRAND LIFECYCLE POSITIONING FOR THE
WIDE AREA NETWORK PRODUCT FORM ....................................................... 8
FIGURE 10: IMPACT OF INNOVATION ON THE PRODUCT LIFECYCLE ............................... 8
FIGURE 11: PROBLEMATIC TECHNOLOGY PLC CURVES .............................................. 10
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Introduction
[CLIENT] Technology Services (CLIENT_TS) is a division of [Client] Bank responsible for delivering
IT infrastructure to the rest of the Bank. It was formed in 1995 from the merger of [Client] Network
Services (responsible for data and voice networks) and [Client] Computer Operations (mainframe and
distributed processing).
In 1998, as a response to customer criticism in terms of product cost, function and complexity, a new
service strategy was launched that replaced the existing strategy of customisation with one that
focussed on simplicity and standardisation. Since then, CLIENT_TS’ service portfolio has been
revised. It now contains ten services covering IT requirements ranging from the running of “backend”
mainframe computers, through to the support of the PC desktop environment, plus a further three
services that have been identified for future service development. All of these services are considered
to be standard “building blocks” that cannot be customised to suit local needs of individual customers –
every customer receives the same service at the same unit cost. A brief overview of CLIENT_TS
services is contained in Appendix 1.
The new portfolio, launched at the end of 1999, presents CLIENT_TS with two challenges:
1.
To ensure that services remain “standard” so that the core strategy of simplicity is not diluted
2.
To ensure that within this framework services are flexible enough to respond to changing customer
requirements.
This document introduces the concept of Product Lifecycle Management as a method that CLIENT_TS
can employ to help manage its services in light of these challenges. In so doing, it will explain, in the
context of CLIENT_TS:
1.
What the Product Lifecycle is.
2.
How it can be used as a service management tool.
Finally, the document will conclude with a summary of the benefits of Product Lifecycle Management
to CLIENT_TS and make recommendations as appropriate for its use in setting product strategy.
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Definition of Product Lifecycle Management
Every product, according to marketing theory, has a lifecycle that can be used to chart its progress in
terms of sales and as a basis for marketing and product strategy. Therefore, the product lifecycle
(PLC), is
“The course of a product’s sales and profits over a lifetime”
Kotler et al (1999)
The term “lifetime” used in this description implies that products have a limited life (Grantham, 1997),
and that this life can be charted suggests that it passes through a number of stages during which it will
face differing challenges and degrees of success in terms of profit (Kotler, 1994). This further suggests
that, to maximise success, a product requires different management strategies (marketing, financial,
manufacturing, etc) in each stage of its life.
The PLC is a tool that management can use to identify which service strategies are needed and when to
employ them. The product lifecycle traditionally consists of a product development phase plus four
post-product launch lifetime stages, although most writers refer only to the post-launch stages. The
PLC is shown in Figure 1, and its stages are described below.
Product
Development
Stage
Introduction
Growth
Maturity
PRODUCT LAUNCH
Sales &
Profits
Decline
Sales
Profit
0
Time
Figure 1: The Product Lifecycle (Kotler, 1999)
The characteristics of each of these stages are shown in Figure 2.
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PLC Stage
Product
Development
Introduction
Growth
Maturity
Decline
[Client] Confidential
Characteristics
Refers to the product development process that occurs once a company has
identified an opportunity for a new product.
This stage obviously occurs before product launch, and as such there are no
sales, but development costs are incurred – hence the negative profit on the
graph.
Covers the product’s birth into the market place, and has:

Low sales, negative profits

High unit cost

Low awareness of product & few customers

Low competition
Covers the period when market awareness heightens and sales accelerate.

Unit cost starts to fall & sales increase

Profits rise, perhaps breakeven

Growing number of competitors
Covers the period of peak demand for the product.

Sales growth slows

Unit costs are at their lowest & profits at their highest

Number of competitors is at its highest
Covers the period when sales fall, as the product becomes outdated or obsolete

A decline in sales is experienced

Number of competitors fall (and this may help to stabilise the fall in other
products sales)

Unit costs start to rise again.
Figure 2 : Characteristics of PLC stages (adapted from Kotler, 1994)
The Application of Product Lifecycle Management
“In short, the product lifecycle concept provides a framework for thinking
about both a product’s evolution through time and the kind of market
segments that are likely to develop at various points in time”.
Hayes & Wheelwright (1984)
Product Lifecycle Management is a useful tool that can be used by organisations in a number of ways,
as follows:

Awareness of different product “levels”

Service Portfolio Management

Product Development Cycle
These are explained in detail below.
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
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Awareness of different product “levels”
Kotler (1994) states that three levels of product lifecycle exist – product class (such as
“toothpaste”), product forms (such as “whitening”), and brand (“Colgate”).
Grantham (1997) suggests that most proponents of PLC theory refer to product form (“cola”)
rather than brand (“Pepsi”) or class (“carbonated soft drinks”). However the theory is often
applied in organisations at the brand level. Hence, organisations need to be aware of the levels and
their differences. Wood (1990) suggests that the common practice of focussing on brands only is a
“unhealthy myopia”. Figure 3 contains examples of these differences both for the car market and
for some CLIENT_TS services.
Product Class
Automobiles
Product Form
Supermini
Large Family Hatchback
Network Connectivity
Voice Networks
Wide Area Data Networks
Local Area Data Networks
Brand
Renault Clio
VW Polo
Ford Mondeo
Vauxhall Vectra
BT PSTN
Clearway
SNA
UKDN
MPRN
GroupLAN
Figure 3: Examples of PLC "Levels"
The implication of product levels means that organisations need an understanding not only of the
PLCs for their own brands, but also for the product form and class. The lifecycle of the automobile,
for instance, is hugely different from the lifecycle of the Renault Clio.
This can be demonstrated by analysing the CLIENT_TS Telephony service. Here the Clearway
brand (which is the name for CLIENT_TS’ telephone network) appears to be approaching the
“decline” stage, due to the changing Bank emphasis from branch-based customer service units to
centralised customer contact centres. It is likely that, within the next 12-18 months, the
functionality of Clearway will be excessive and the product will be too expensive for customer
needs. Therefore Clearway will need to be replaced with a lower cost, lower functionality
equivalent, and thus the brand will decline. However, the product form will remain the same. The
product lifecycle for this will depend on emerging technologies such as IP Telephony and
voice/data integration. This relationship is shown in Figure 4.
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Sales
Product Form:
Telephone Networks
Product Form:
Voice over IP
Clearway
Clearway’s
replacement
Barclays
VPN
IP
Telephony
Services
Time
1992
1996
2000
2004
2008
Figure 4: PLCs for Telephony (“Product Form”) and Clearway (“Brand”) in CLIENT_TS
Service Portfolio Management
A common approach to portfolio management is the Growth/Share Matrix proposed by the Boston
Consulting Group (BCG). This matrix, shown in Figure 5, provides organisations with details of
the range of products in their portfolio and enables them to set product strategies to fulfil the
strategic aim.
PROBLEM
CHILD
Products (size
is relative to turnover)
MARKET GROWTH
High
STAR
Natural
Drift
Low

DOG
CASH COW
High
Low
MARKET SHARE
Figure 5: The BCG Growth/Share Matrix (Adapted from Lancaster & Messingham, 1999)
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The main problem with this approach is that, by concentrating only on market share and growth,
the matrix ignores new products and overlooks markets with negative growth rates (Lancaster &
Massingham, 1999). Therefore, in PLC terms, it ignores the introduction and decline stages. This
problem is addressed by Barksdale & Harris (1982), who extended the BCG matrix to show how
strategies can be developed across the whole lifecycle. The relationship between the product
portfolio and lifecycle is shown in Figure 6.
Introduction
Growth
“Stars”
High share
High growth
Maturity
Decline
“Cash Cows”
High share
Low growth
“War Horse”
High Share
Negative Growth
Sales
“Infants”
Sales
“Problem Children”
Low share
High Growth
“Dogs”
Low share
Low growth
“Dodos”
Low share
Negative Growth
Time
Figure 6: Combined PLC/Product Portfolio Concepts (Barksdale & Harris, 1982)
These models identify market conditions for a range of product “types”. From this, product
strategies can be developed that help the company to build a balanced portfolio. The balance is
essential to ensure the long term survival of the organisation – a portfolio consisting entirely of
“cash cows” may appear attractive in the short term, but cash cows can soon become “dogs”.
Depending on the type of product, there are a number of strategies available for an organisation to
use, according to the industry and competitor characteristics displayed. Example strategies are
shown in Figure 7.
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STAGE OF PRODUCT LIFECYCLE
Introduction
Growth
STAR
Maturity
CASH COW
High
• Maximise product share,
using penetration pricing
• Offer product extensions
(eg warranty)
INFANT
Decline
WAR HORSE
• “Harvest” - Increase
cash flow from
product
• “Harvest” profits or cut
price to retain market
share
• Protect market share
• Selective withdrawal
from unprofitable
sectors
DOG
DODO
• Offer a basic product
PROBLEM CHILD
• Use cost-plus pricing
• Build product
awareness
• “Harvest” - maximise
profitability
• Differentiate product
(niche)
• Differentiate
Low
SALES
• Build market share
through product
awareness
• Divest
• Competitor watch (if
they leave the market
it may be profitable to
stay)
• Divest where not
profitable
Figure 7: Strategies through the Product Lifecycle
(Adapted from Kotler (1994), Lancaster & Massingham (1999), Porter (1985) and
Barksdale & Harris (1982))
Although some strategies in Figure 7 appear unfeasible for an internal organisation such as
CLIENT_TS, (e.g. profit maximisation) the matrix does at least provide a framework for
managing the service portfolio. Applying the model to the CLIENT_TS service portfolio shows
that it has a concentration of “cash cows”. This is because CLIENT_TS is the only viable
provider due to economies of scale, functionality or security concerns – for instance, the Bank
needs interconnectivity so it is sensible to use only one supplier of wide area networks.
CLIENT_TS services are shown plotted against the model in Figure 8 (for an overview of
CLIENT_TS services, please turn to Appendix 1).
STAGE OF PRODUCT LIFECYCLE
Introduction
Growth
Maturity
STAR
INFANT
High
Data
Processing
Security
WAN
Messaging
SALES
Decline
WAR HORSE
CASH COW
Voice
Directory
GroupLan
Low
Internet
MDS
BDSS
Collaborative
PROBLEM CHILD
DOG
DODO
Figure 8: CLIENT_TS Service Lifecycle Positioning
(NB: size of service markers are not relative to turnover)
This shows the benefit that PLCs can bring to service portfolio management. In the CLIENT_TS
case, the matrix appears to show a reasonably balanced portfolio, although the theory may suggest
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concerns about the concentration of cash cows and lack of future stars or problem children.
However, the concept of product levels needs to be applied again – as CLIENT_TS products are
effectively product forms, the cash cows are likely to remain in maturity for many years. This is
being demonstrated in CLIENT_TS by Project Reach, which is responsible for the migration of
the old Wide Area Networks (which in CLIENT_TS are product “brands”) to a new IP network
run by BT. This is shown in Figure 9.
STAGE OF PRODUCT LIFECYCLE
Introduction
Growth
STAR
High
INFANT
Maturity
Decline
WAR HORSE
CASH COW
SALES
MPRN
UKDN
IP Network
(Reach)
Low
SNA
PROBLEM CHILD
DOG
DODO
Figure 9: Product Brand Lifecycle Positioning for the Wide Area Network Product Form

Product Development Cycle
As pressure for quicker speed to market increases, the product lifecycle can be used to ascertain
when products should be replaced or developed. This decision cannot wait until the product is in
decline, as shown in Figure 10.
Sales
Product C
Longer-term gain from
introducing new
product earlier
Short-term loss of
potential revenue
Later
replacement of
product B
Product B
replaces
Product A
Product A
Time
Figure 10: Impact of Innovation on the Product Lifecycle
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In this example, by making changes as Product A reaches maturity (either by moving into a new
market, or replacing the product with a new service, as shown in the graph), the company attains
long-term benefits. This happens as, despite a potential short-term loss of revenue, Product B is
into the growth stage and approaching maturity by the time Product A would have been in
decline.
This example is an extreme case, but the relevance to CLIENT_TS is that recognising changes in
the market early results in longer-term benefits. Referring to the Telephony case on page 5, this
means CLIENT_TS should not wait until Clearway is in decline, but start to think about its
replacement now (bearing in mind that the full customer requirements may not be finalised).
The Validity Of Product Lifecycle Management
It is has been shown that the PLC can play a crucial role in helping organisations set product strategies.
However, as markets continue to become more dynamic, questions need to be raised about the validity
of PLC in modern organisations. This issue is particularly important for organisations such as
CLIENT_TS, where technology change is increasing exponentially and strategic emphasis has been
placed on speed to market through shorter development cycles. In this context, this may mean that the
concept of tracing the lifecycle throughout its life is outmoded.
The specific areas of concern are:

It is not certain that a product has a “life”
Grantham (1997) suggests that the PLC draws analogy with a biological being, and as such each
stage of life is sequential and relatively fixed. However, this isn’t the case with products or
markets – each one has a differently shaped curve where the time scales and outcome of each stage
can vary. Examples of common PLC curve patterns can be found in Appendix 2.
For technology services, the curve is likely to be relatively short and therefore a relatively
unattractive proposition for the organisation to track (Goldman & Muller, 1982). If the “ideal”
PLC curve shows short development time (and cost), plus a short growth period in which peak
sales are met, a long maturity phase in which profits are maximised and a long decline phase to
give organisations plenty of time to develop replacement services, technology services are almost
the direct opposite. They have a long and costly development time, a long time for the technology
to be adopted and then a short time until replacement technologies are revealed. These are shown
in Figure 11.
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Sales
[Client] Confidential
THE “IDEAL” PLC
Sales
TYPICAL TECHNOLOGY SERVICE PLC
Short maturity
Long maturity
Rapid
growth
Slow
Decline
Slow
growth
Rapid
Decline
Time
Short development
Time
Long, expensive development
Figure 11: Problematic Technology PLC Curves (Goldman & Muller, reproduced in Kotler, 1994)
As already mentioned, CLIENT_TS have minimised this problem by aligning its service to
product forms. Referring to the telephony example, Clearway has been replaced by Telephony
Network Provision. This means that the service has a much longer lifetime, meaning less change
to customers, but the brand lifecycles are now adapted to technologies. As technologies change,
the service remains roughly the same, although detail of functionality may alter. Therefore, if and
when [Client]’ strategy makes Clearway obsolete, the “Featurenet” technology (which Clearway
is based on) ends its lifecycle and the replacement starts its own lifecycle. In principle, the
customer need never know that the technology has changed, as long as business requirements are
fulfilled, costs do not increase (the rationale for the change in this case is actually for lower costs)
and the telephone on the desk still works.

It is difficult to plot where a product actually is in its cycle
Dhalla & Yuseph (1976) suggest that the PLC stages are not distinct phases of a product, and
characteristics in the phases are not consistent. This may lead to management believing that the
product is at a different stage in its life than it actually is, and the wrong decisions may result.
Confusing product forms and product brands may further exacerbate this situation.
For example, if sales growth slows during the growth phase, the lifecycle theory would suggest
that maturity is nearing. However, the slow down may be caused by other factors such as seasonal
demand, supply problems or even a temporary “blip”.
Heinz’s recent announcement to end sales of Salad Cream is one example of this happening – the
company, thinking its product was in decline made front-page news with the demise of the brand,
sales increased and the product entered a recycle stage of maturity as featured in the “cyclerecycle” PLC shape (as featured in Appendix 2). CLIENT_TS need to be aware of all the risks in
placing its services in a lifecycle framework. Analyses of service positioning (as found in figures
8 and 9) are subjective and may be distorted by one-off occurrences.
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[Client] Confidential
Other factors can influence the shape of the PLC curve
A more cynical view of Heinz’s Salad Cream announcement is that the company expected this
reaction and only made it for cheap publicity – but whatever the motive, the effect was a boost in
sales and a “recycle” effect happened. This interpretation of events can be used to demonstrate
that organisations can have more control over the stages of the lifecycle than the model suggests.
Poor advertising and other lacks of resources may result in a downturn in sales, but this does not
necessarily mean the product is in decline. A new promotion may be all that is required to recover
this situation.

The PLC can be a self-fulfilling prophecy
Management blindly following the signs of product lifecycle theory without considering the wider
picture may create self-fulfilling prophesies (Wood, 1990). For instance, if sales show a fall, the
theory would suggest that the product has passed maturity and has entered the decline phase.
Following the suggested strategy, management would then divert resources away from the
“declining” product and reallocate them to products that are earlier in their lifecycles, thereby
actively contributing to the product’s demise. As already discussed, the fall in sales may actually
have been caused by factors such as poor advertising.
The use of the PLC may also lead to strategies that are the result of technology “push” rather than
market “pull” (Baker, 1999)..
The implication to CLIENT_TS of these final three points is that various factors need to be taken into
account before product strategies are set. For instance, if the recent closure of branches resulted in
reduction in Clearway sites, taken in isolation this may be mistaken for the start of Clearway’s decline.
In actual fact, in Clearway terms, it is a lowering of peak demand and the setting of a new maturity
level.
Conclusions & Recommendations
The purpose of this document was to determine to what extent Product Lifecycle Management can help
CLIENT_TS to manage its services, to ensure they fulfil their strategic objectives whilst retaining
flexibility to respond to changing needs.
Firstly, analysis of product lifecycle theory highlighted many uses and advantages to organisations
adopting the techniques, such as:
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It provides a planning framework for product and market strategies, and suggests strategies that are
appropriate for a particular stage of a product’s life

It is a simple, desirable model as it brings a predictive approach to increasingly dynamic
marketplaces (Wyland, 1998)

It provides companies with an element of control by allowing product performance to be measured
against similar products (Kotler, 1994)

It provides a link to other aspects of the organisation by suggesting product and process
improvements (Hayes & Wheelwright, 1979).
However, companies that adopt the technique need to do so with caution, for the following reasons:

Each product has a different shape of curve – this undermines confidence in its use as a planning
framework

It is difficult to use in practice, as it is not always certain where in its lifecycle a product actually is

The strategies suggested can ignore the impact that other factors can have on the product’s demand
(the concept is based on the founding principle that every product follows a sequential path
through stages – as does, say, a human life).

The above arguments, when combined, can lead to wrong strategies being applied and the lifecycle
stages become self-fulfilling prophesies (Wood, 1990).
There are examples of the concept already in use in CLIENT_TS, including the new service portfolio,
which is aligned to the “product form” level (enabling service management to continue seamlessly
when technologies change), and the detailed planning that takes place at both technology and service
levels.
However, to improve the confidence in strategies proposed through lifecycle management,
CLIENT_TS needs to further integrate the process with other aspects of business management, such as:

Business planning cycles, to ensure that the product cycle remains in line with customer
requirements, and that changes in requirements can be foreseen and acted upon

Benchmarking practices, to ensure that the product remains competitive against market
alternatives, in terms of cost and functionality

Performance monitoring, to ensure that the product does what it says it should do, and thus linking
the planning framework with operational realities

Cost management, to ensure that decisions can be made with a sound financial base.
Therefore, product lifecycle management is a powerful tool for CLIENT_TS to use in managing its
services, and should be considered along with demand forecasting, benchmarking, performance and
cost management as part of an integrated service portfolio management strategy. Its concept is simple:
change is inevitable. Its advantage is that it can be used to anticipate change and prepare the
organisation for the challenges ahead.
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References
The books and articles referred to in this document are listed below, in alphabetical order. References
are referred to in the text in the format Author (year).
Baker,M.G. (1999),
The Marketing Book (4th Edition)
Butterworth Heinemann, pp6-7
Barksdale,H.C. & Harris,C.E. (1982)
“Portfolio Analysis and the Product Life Cycle”
Journal of Long-Range Planning, Vol 15 No 6, 1982
Cox,W.E. (1967)
“Product Life Cycles as Marketing Models”
Quoted in Kotler (1994) and Grantham (1997), details below.
Dhalla,N.K. & Yuspeh,S. (1976)
“Forget the Product Life Cycle Concept!”
Harvard Business Review, Jan/Feb 1976, pp102-110
Goldman,A. & Muller,E. (1982)
“Measuring Shape Patterns of Product Life Cycles: Implications for Marketing Strategy”
Quoted in Kotler (1994), pg358, details below.
Grantham,L.M. (1997)
“The Validity of the Product Life Cycle in the High-Tech Industry”
Marketing Intelligence & Planning, Vol 15 No 1, pp4-10
Hayes & Weelwright (1984)
Restoring our competitive edge: Competing through manufacturing
John Wiley & Sons
Kotler,P. (1994)
Marketing Management: Analysis, Planning, Implementation & Control (8th Edition)
Prentice Hall International, pp354-379
Kotler,P., Armstrong,G., Saunders,J. & Wong,V. (1999)
Principles of Marketing (2nd European Edition), Prentice Hall Europe, pg 627
Lancaster,G. & Massingham,L. (1999)
Essentials of Marketing (3rd Edition), McGraw Hill, pp74-103
Porter,M.E. (1985)
Competitive Advantage: Creating and Sustaining Superior Performance
Quoted in Lancaster,G. & Massingham,L. (1999), details above.
Wood,L. (1990)
“The End of the Product Life Cycle? Education says Goodbye to an Old Friend”
Journal of Marketing Management, Vol 6 No 2, pp145-155
Wyland,D.W. (1998)
“Keep Your Product in Play: Introducing Full Life-Cycle Management”
Chain Store Age, Vol 74 No 9, p186
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Bibliography
The books and articles used in the production of this document are listed below, in order of author:
M.G.Baker, The Marketing Book (4th Edition)
Butterworth Heinemann, 1999
Barksdale,H.C. & Harris,C.E., “Portfolio Analysis and the Product Life Cycle”
Journal of Long-Range Planning, Vol 15 No 6, 1982
Dhalla,N.K. & Yuspeh,S., Forget the Product Life Cycle Concept!
Harvard Business Review, Jan/Feb 1976
Grantham,L.M., The Validity of the Product Life Cycle in the High-Tech Industry
Marketing Intelligence & Planning, Vol 15 No 1, 1997
Hayes & Weelwright, Restoring our competitive edge: Competing through manufacturing
John Wiley & Sons, 1984
Kotler,P., Marketing Management: Analysis, Planning, Implementation & Control (8th Edition)
Prentice Hall International, 1994
Kotler,P., Armstrong,G., Saunders,J. & Wong,V. Principles of Marketing (2nd European
Edition), Prentice Hall Europe, 1999
G.Lancaster & L.Massingham, Essentials of Marketing (3rd Edition),
McGraw Hill, 1999
G.Lancaster & P.Reynolds, Introduction to Marketing: A Step-by-Step Guide to all the Tools of
Marketing
Kogan Page Limited, 1999
G.M.Magnan, S.E.Fawcett, & L.M.Birou, Benchmarking Manufacturing Practice Using the
Product Life Cycle
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Marketing Assignment
[Client] Confidential
Appendix 1: A Brief Overview of CLIENT_TS Services
To reinforce theoretical points, this document refers the reader to CLIENT_TS services. This appendix
provides a brief overview of what these services are to aid the reader’s understanding of the issues
being discussed. Underlined text shows a link to other services.
Service
BDSS
Clearway
Collaborative
Services
Data Processing
Directory
Services
GroupLAN
Internet / Intranet
LAN
Infrastructure
MDS
Messaging
MPRN
Reach
Security &
Certification
Services
SNA
Telephony
Services
UKDN
Voice
WAN
Description
Stands for “[Client] Desktop Support Service”. Provides support to PC desktops and
associated LAN servers. Very limited use; most of the Bank customers have their
own arrangements with 3rd party suppliers.
A product brand level service that is used to deliver telephony services in the Bank.
Supplied in National (PABX-based) or Centrex (BT-exchange based) versions.
A term given to a collection of technologies and services that will assist collaborative
working practices, such as workflow and document management. The service has
been identified as being required by the Bank but has not yet been developed.
A collective term to describe the provision and management of mainframe and
distributed systems infrastructure. All mainframe and most distributed systems are
located in CLIENT_TS data centres. CLIENT_TS has a virtual monopoly in the
Bank (the exception is a number of distributed systems that are located on customer
premises for operational reasons).
A term given to the provision of a bank-wide directory system to support access to
all WANs, Collaborative, Internet and Data Processing services. The service is
currently under development but will become mandatory.
A product “brand” level name given to LAN Infrastructure Provision. Provided at a
limited number of head office locations only. Other Bank premises have LANs
managed by 3rd party companies.
A term given to the hosting of the Bank’s internet and intranet services. It is
mandatory to use CLIENT_TS for this purpose, although site development is not
CLIENT_TS’ responsibility.
See GroupLAN.
Stands for “Managed Data Services”. The service takes data feeds from 3 rd party
organisations, such as Reuters, and reformats them to be suitable for PC desktop
viewing. The service has very few customers and has been undergoing an exit
programme for approximately two years, but a suitable alternative supplier has not
been found.
The term given to the provision of the Bank’s e-mail backbone (also called
“Mailbox”). The use of the backbone is mandatory, but the management of e-mail to
the desktop can be provided by CLIENT_TS or, in many cases, by clients
themselves. The service was rolled out to the Bank in 1999 and therefore has just
reached maturity.
A product brand level service that was previously one of the main wide area data
networks in the Bank. Now being replaced with an IP Network. See WAN for more
details.
This is actually a project rather than a service. It is responsible for changing the way
WAN services are delivered at the product brand level.
The term given to the provision of firewalls and the forthcoming PKI security
functionality. It is mandatory to use CLIENT_TS, although the service is still in
infancy due to the development of PKI.
A product brand level service that was previously one of the main wide area data
networks in the Bank – it is still used, for access to mainframe systems. Will be
replaced by C.IP.E (a secure IP network) that will be delivered as part of the IP
Network through Project Reach. See WAN for more details.
A “product form” term for the provision of a telephone network. Currently delivered
through the Clearway product. The use of CLIENT_TS is mandatory for Bank-wide
connectivity, but many customers also use BT for local telephone lines.
A product brand level service that was previously one of the main wide area data
networks in the Bank – it was a more secure version of MPRN. Now being replaced
with an IP Network. See WAN for more details.
A generic term given to the provision of Telephony services.
Stands for Wide Area Networks – and is a product brand level service. Project
Reach is redefining the CLIENT_TS WAN service, by replacing a number of
networks based on differing technologies (MPRN, SNA & UKDN). The use of
CLIENT_TS is mandatory.
Page A-1
Marketing Assignment
[Client] Confidential
Appendix 2: Alternative Product Lifecycle Curve Shapes
Cox (1967) argued that there are actually six patterns or curves that can show the life cycle of a product
– the shape of the PLC does not always have to be the traditional “S” shape demonstrated in Figure 1
on page 2. Since then, more standard shapes have been identified and there are now considered to be
up to seventeen (Kotler, 1994). Some example shapes are shown below, with relevance to
CLIENT_TS.
Name
Characteristics
Typical Shape
CLIENT_TS
Example
Growth-
Initial peak in demand falls
Slump-
before maturity is reached
The number of
Sales
BDSS accounts hit a
Maturity
peak but Corporate
Pattern
Banking customers
Time
transferred to their
own service.
Cycle-
The standard life cycle (primary)
Recycle
shows decline but sales recover
Pattern
into a secondary cycle (recycle)
Clearway National
Sales
sales fell due to
switch to Centrex,
Primary
Cycle
– perhaps due to a company
response such as renewed
Recycle
however the service
Time
advertising to arrest the decline.
Scalloped
The company finds new uses or
Pattern
markets for existing products.
is now being installed
into new call centres
GroupLAN, initially
Sales
just available at one
campus site, has
since been installed
Time
at four others, each
providing new
demand.
Page A-2