Product Life Cycle -Marketing Management

Loss Introduction Growth Time Maturity Decline
(d) Classical Life Cycle Pattern
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Dr S.L Gupta
Product Life Cycle
Pioneer Pioneer and Follower Advantages
divided in four stages: Introduction, growth, maturity, and decline.
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Dr S.L Gupta
Product Life Cycle
Common Product Life Curves
Sales
Sales
Sales
Time (a) Growth-Decline Plateau
Negative Limited
Product Life Cycle Stages, Characteristic s and Standard Responses
Technical Change In Product Design Market Segments Competitors Profitability Company’s Standard Responses Product Product Line Price
of technologically superior products and consumers’ shift in values, beliefs, and tastes to products offering more value.
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Product Life Cycle
Promotion
Distribution
High
Selective
High
Intensive
Hold or reduce
Intensive
Reduce
Selective
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Dr S.L Gupta
Product Life Cycle
Decline Stage
Decline stage sets in when customer preferences change due to the availability
Time (b) Cycle-Recycle Pattern
Time (c) Innovative Maturity or Scalloped Pattern
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Dr S.L Gupta
Product Life Cycle
Common Product Life Curves Sales
Profits
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Dr S.L Guptaoduction Characteristics
Market Growth Rate (Rs) Moderate High
Growth
High Moderate
Maturity
Insignificant Limited
Decline
Implications and Limitations of Product Life Cycle Concept
Product life cycle concept shows a framework to spot the occurrence of opportunities and threats in a product market and the industry. This can help firms to reassess their objectives, strategies, and different elements of marketing programme.
Ability to take advantage of pioneer’s positioning mistakes. Ability to take advantage of pioneer’s marketing mistakes. Can take advantage of pioneer’s resources limitations.
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Few to many Limited High for Marketshare leaders Gain market share Concentrate on features Hold line length Hold or reduce
Few Few Low Harvest No change Reduce line length Reduce
Product Life Cycle
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Chapter
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Product Life Cycle
Product Life Cycle
A product is introduced among consumers, and if consumers perceive it as meeting their needs and want, it experiences a period of growth. Subsequently, it reaches the stage of maturity and when it loses its appeal, its decline starts and eventually is may be taken off the market (demise). The classical product life cycle curves are depicted as “S” shaped and generally
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Dr S.L Gupta
Product Life Cycle
Growth Stage
The growth stage of life cycle is characterised by a sharp rise in sales. Only a small percentage of new products introduced survive to reach the growth stage.
Follower
First choice of market segments. Can bring in superior technology.

Influence on consumer attitudes and choice criteria.
Can take advantage of pioneer’s product mistakes.
Pioneer defines the rules of the game. Switching costs higher for early adopters of pioneer’s product. Gaining distribution advantage. Economies of scale and more experience. Possibility of pre-empting scarce resources and suppliers.
Few Few Negative Stimulate primary demand Improve quality Narrow Skimming or Penetration
Few to many Many High Gain market share Continue quality improvements Broad Reduce
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Dr S.L Gupta
Product Life Cycle
Maturity Stage
Most products after surviving competitive battles, winning customer confidence and successful through growth phase enter their maturity stage. The sales plateau, and this flattening of sales usually lasts for some time because most products in the category have reached their maturity stage, and there is stability in terms of demand, technology, and competition.
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Product Life Cycle
Introduction Stage
The introductory stage is viewed as fairly risky and quite expensive because large amounts of money is spent on advertising and other tools of marketing communications to create consumer awareness in sufficiently large numbers, and encourage trial.