1. Product life cycle

2. sales
profits
introduction growth maturity decline

3. Product life cycle
• Introduction
• Growth
• Maturity
• Decline

4. Introduction
• Firms seeks to build a product awareness and develop a
market for the product. The impact of marketing mix:
• Product branding and quality level is established and
intellectual property protections like patents , copy
rights etc are obtained
• Pricing may be low penetration pricing to build market
share rapidly and high skim pricing to recover
development cost
• Distribution is selective until the customers show the
acceptance of the product
• Promotion is aimed at innovators and early adopters

5. Marketing strategy: introduction stage
• Profits are negative /low
• Promotional expenditure are at their highest ratio
to sales
• Decide when to enter the market
– To be first
– To come in later
• Market pioneer advantage

6. Growth
• Firms seeks to build brand preference and increase
market share.
• Product quality is maintained and additional
features and support services may be added
• Pricing is maintained as the firm enjoys increasing
demand with little competition
• Distribution channels are added as demand
increases and customers accept the product
• Promotion is aimed at broader audience

7. Marketing strategy : Growth stage
• Improves product quality and styling
• Add new product features and models
• Enter new market segment
• Enter new distribution channel
• Product preference advertising

8. Maturity
• Strong growth in sales diminishes. To defend
market share while maximizing profits .
• Product may be enhanced to differentiate the
product from that of competitors
• Pricing may be lower because of new competition
• Distribution is more intensive and incentives may
be offered to encourage preference over
competing products
• Promotion emphasis product differentiation

9. Marketing strategy : maturity stage
• Market modification
–Expand number of brand users
–Increase the usage rate per user

10. Marketing strategy : maturity stage
• Product modification
–Quality improvement
–Feature improvement
–Style improvement

11. Marketing strategy : maturity stage
• Marketing program modification
–Price
–Distribution
–Advertising
–Sales promotion
–Personal selling
–services

12. Decline
• Maintain the product
• Harvest the product
• Discontinue the product