The document discusses the product life cycle, which describes the stages of a product's sales and profits over time. There are typically four stages: introduction, growth, maturity, and decline. Each stage poses different challenges and opportunities for sellers as profits rise and fall. Effective strategies must be tailored to the specific characteristics of each life cycle stage.
3. Product Life Cycle
product life cycle is the course of a product’s
sales and profits over time.
product life cycle(PLC) deals with the life of
a product in the market with respect to
business or commercial costs and sales
measures.
4. Why a product life cycle?
1. Products have a limited life.
2. Products sales pass through distinct stages, each
posing different challenges, opportunities and problems
to the seller.
3. Profits rise and fall at different stages of the product
life cycle.
4. Products require different marketing, financial,
manufacturing, purchasing, and human resource
strategies in each life – cycle stages.
5. Product Life Cycle
Sales and
Profits Sales
Profits
Time
Product Introduction Growth Maturity Decline
Develop-
ment
Sales and Profits Over the Product’s Lifetime
A Style is a basic and distinctive mode of expression appearing in a field of human endeavor. Styles appear in homes, clothing, art etc. A Fashion is a currently accepted or popular style in a given field. Fashion pass through four stages: Distinctiveness, emulation, mass fashion, decline. Fads are fashions that comes quickly into public view , are adopted with great zeal, peak early, and decline very fast.