1. Product Life Cycle
 The product life cycle (PLC) is a series of phases that a
product will go through in its “lifetime” in relation to the
profits and sales that it will collect. The period of time
over which an item is developed, brought to market and
eventually removed from the market is known as PLC. The
life cycle of a product is associated with marketing and
management decisions within businesses, and all products
go through five primary stages: development,
introduction, growth, maturity, and decline. Each stage
has its costs, opportunities, and risks, and individual
products differ in how long they remain at any of the life
cycle stages.
According to Prof. Kotler, “Product life cycle is an
attempt to recognize distinct stages in the sales history
of the product.”

2.  Every PRODUCT has a life cycle and asserts four
things about a PRODUCT:
 PRODUCTS have a limited life
 PRODUCT sales pass through different stages each
posing different challenges, opportunities & problems
to the seller
 Profits rise and fall at different stages
 PRODUCTS require different marketing, financial,
purchasing strategies at each stage

3. Product Life Cycle stages
No of
sales
Time line
Research &
Development (R&D)
Launch /
Introduction
Growth
Maturity
Saturation
Decline

4. Stages of Product Life Cycle

5. Product Life Cycle......
 Research and Development Phase:
1. Begins when the company develops a new-product idea
2. Sales are zero
3. Investment costs are high
4. Profits are negative

6. Introduction Phase:
 Low sales
 Prices tend to be high because costs are high
 Negative profits
 Innovators are targeted
 Little competition

7. Growth:
 Sales rapidly rise
 Prices remain where they are , or fall slightly
 Rising profits
 Promotional expenditure may increase or decrease
depends upon competition
 New customers also start buying
 Growing competition

8. Maturity Phase :
• Usually lasts longer than previous stages
• Divided into three phases:
1. Growth-sales growth rate starts to decline
2. Stable-sales flatten because of market saturation
3. Decaying maturity-the absolute level of sales
begin to decline and customers start switching to
other products

9. Decline Phase :
 Sales and profits decline
 Some companies withdraw their products from market
 Those remaining reduce number of products
 High prices on spare parts
 Focuses on cost reduction