MALAVIYA NATIONAL INSTITUTE OF TECHNOLOGY JAIPUR

Presentation
on
“Product Life Cycle”

Presented by Presented To
Prakash N. Sharma Dr. M L Meena Sir
2020PIE5690 Associate Professor
 Definitions
• According to Philip Kotler(was an American
marketing author, consultant, and professor):
“The Product life cycle is an attempt to
recognize the distinct stages in the sales
history of the product.”

• According to William J. Stanton(was the Member of

the U.S. House of Representatives from Ohio's):

“The Product life cycle concept is the

explanation of the product from its birth to
death as a product exists in different stages
& in different competitive environments”

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 Meaning

All products have certain length of life during which

they pass through certain identifiable stages. The PLC is
a conceptual representation of product ageing process.
Like our life is divided into stages same as life of a
product is also divided.
Product start with introduction in the market for the
purpose of sale. The demand of that product is
gradually increased in the market & it reach to its
maximum, from where it start decline. It is effective
lifespan of a product.

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 Features of Product Lifecycle
• The life cycle concept may apply to a
brand or to a category of a product.

• Its duration may be as short as a few

months or years, depending on the
product.

• As a product progresses through the

stages, changes are made to how the
product is marketed.
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 Factors affecting the Product
life cycle

• Rate of technological change.

• Rate of market acceptance.
• Competitor’s entry.
• Economic & managerial forces
• Risk bearing capacity
• Government policy

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 Stages of Product life cycle

• The stages that a product goes through

during its life:

 Introduction,
 Growth,
 Maturity, and
 Decline.

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 Stages of Product life cycle

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 Introduction Stage

• Most products fail at this stage?

– Why?
• This is the stage in which the product is
initially promoted. Public awareness is
very important to the success of a
product. If people don't know about the
product they won't go out and buy it.

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 Introduction Stage

• There are two different strategies you can

use to introduce your product to
consumers:

– Penetration
– Skimming

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 Introduction Stage

• Penetration
– This strategy usually set the product price
very high initially and then gradually lowers
it over time.
– This is a good strategy to use if there are
few competitors for your product.
– Profits are high with this strategy but there is
also a great deal of risk. If people don't want to
pay high prices you may lose out.

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 Introduction Stage

• Skimming
– In this case you set your prices very low at
the beginning and then gradually
increase them.
– This is a good strategy to use if there are a lot
of competitors who control a large portion of
the market.
– Profits are not a concern under this strategy.
The most important thing is to get you product
known and worry about making money at a
later time.
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 Growth

• The Growth stage is where your product

starts to grow. In this stage a very large
amount of money is spent on advertising.
You want to concentrate of telling the
consumer, how much better your product is
than your competitors' products.
• What are the ways in which you could
prompt a product?

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 Growth

• If product is successful with advertising

strategy then will be an increase in sales.
Once product sales begin to increase
product share of the market will stabilise.

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 Maturity

• The third stage in the Product Life Cycle is

the maturity stage. If product completes
the Introduction and Growth stages then it
will then spend a great deal of time in the
maturity stage.

• During this stage sales grow at a very fast

rate and then gradually begin to stabilise.

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 Decline
• This is the stage in which sales of your
product begin to fall. Either everyone that
wants to has bought your product or new,
more innovative products have been created
that replace yours.

• Many companies decide to withdrawal their

products from the market due to the
downturn. The only way to increase sales
during this period is to cut your costs reduce
your spending.
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 Other Considerations
Very few products follow the same
cycle. Many products don't even make it
through all four stages. Some stages
even bypass stages
This is the problem with the PLC. There is
no set way for a product to go. Therefore,
every product requires a great deal of
research and close supervision
throughout its life. Without proper
research and supervision your product
will probably never get out of the first
stage.
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 Importance of Product life cycle

• Helpful in sales forecasting.

• Helpful as a predictive, planning and
control tool.
• Helpful in framing marketing programme
and price determination.
• Development of new product.
• Comparison of different products.

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Thank You