PRODUCT LIFE CYCLE
Nick Mercuro
Austin Moore
John Skinner
PRODUCT LIFE CYCLE
 A product life cycle is the typical stages a product
goes through during its lifetime.
 The product life cycle is broken down into five
different stages…
- Development
- Introduction
- Growth
- Maturity
- Decline
DEVELOPMENT STAGE
 During this stage, the product is usually just an idea
in the process of being manufactured.
 This is where a new business devises a plan
regarding logistics, budget, investments, all in order
to launch their product.
 During this stage the company strategies how to
establish a market and create a demand for their
product.
 Profit Starts to Increase
GROWTH STAGE
 During this stage of the product cycle, companies
use marketing tactics to create a specific brand that
differentiates their product form their competitors.
 Marketing the product involves showing customers
how this product benefits them over the products
sold by the competition, thus creating a brand
preference .
 Profit Starts to Increase
MATURIT Y STAGE
 As the product gains over its competition, the
product enters the maturity stage of the product life
cycle.
 This cycle involves efforts to build customer loyalty,
typically accomplished with special promotions and
incentives to customers who switch from competitor
brands.
 Profit at its Peak
DECLINE STAGE
 Once a product market is over saturated, the product enters
into the decline stage of the product life cycle where
marketing ef forts decline.
 If the product generated loyalty from customers, the company
can retain customers during this stage, but does not attract
new sales from new customers .
 The focus is generally on reinforcing the brand image of the
product to stay in a positive light in the eyes of the products
loyal customers.
 Profit Plateaus
 Decreases Marginally
HOW DO MARKETING COST INCURRED AT
EACH STAGE OF THE PRODUCT CYCLE LIFE
VARY?
INTRODUCTION STAGE
 At the introduction stage heavy expenditure is
incurred on advertising and sales promotion to gain
quick acceptance and create primary demand.
GROWTH STAGE
 The promotional expenditure remains high because
of increasing competition and due to the need for
effective distribution .
MATURIT Y STAGE
 Heavy expenditure is incurred on promotion to create
brand loyalty .
DECLINE STAGE
 The product is gradually displaced by some new
products due to changes in buying behavior of
customers.
 Promotion expenditure is drastically reduced.
 The decline may be rapid and the product may soon
disappear from the market.
STRATEGIES
STRATEGIES: INTRO STAGE
 (а) ‘Money back’ guarantee may be of fered to encourage the
people to try the product.
 (b) Attractive gift as an ‘introductory of fer’ may be of fered to
customers,
 (c) Attractive discount to dealers.
 (d) Some unique feature built into the product
STRATEGIES: GROWTH STAGE
 (a) New versions of the product may be introduced to satisfy
the requirements of dif ferent types of customers.
 (b) Brand image of the product is created through advertising
and publicity.
 (c) The price of the product is made competitive.
 (d) Customer service is enhanced.
 (e) Distribution channels are strengthened to make the
product easily available wherever required.
STRATEGIES: MATURIT Y STAGE
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(a) The product is dif ferentiated from the rival products.
(b) Brand image of the product may be emphasized.
(c) Lifetime or longer period maturity is of fered.
(d) New markets may be developed.
(e) New uses of the product are developed.
(f) Reusable packaging is introduced.
STRATEGIES: DECLINE STAGE
 (a) New features may be added in the product.
 (b) The packaging may be made more attractive.
 (c) Economy packs or models may be introduced to revive
demand.
 (d) Selective distribution may be adopted to reduce costs.
PRODUCT POSITIONING
 A marketing technique intended to present products in the
best possible way to dif ferent target audiences .
 Companies use this technique during all the stages of the
product cycle as a way to continue creating interest in their
company.