1. PRODUCT PUBLISHING, DELIVERING AND
MARKETING
(MARKETING MANAGEMENT)
SRI LANKA INSTITUTE OF INFORMATION
TECHNOLOGY
BSC (IT) SPECIALIZING IN MULTIMEDIA – FINAL YEAR
VIDYAS G.
IT 11 6086 46
2. Product Life Cycle Shows the stages
that products go through from
development to withdrawal from
the market
3. A product is the item offered for
sale. A product can be a service or
an item.
The price that can be charged
depends on the market, the
quality, the marketing and the
segment that is targeted.
4. The Product Life Cycle (PLC) is used
to map the lifespan of a product.
There are generally four stages in
the life of a product.
These four stages are,
Introduction stage
Growth stage
Maturity stage
Decline stage
The following graph illustrates the
four stages of the PLC
5. Not all products follow this
cycle:
Fads
Styles
Fashions
The product life cycle concept can
be applied to a:
Product class
Product form
Brand
7. The introduction stage of
the product life cycle is where
a new product is launched into a
market.
Begins when the company
develops a new-product idea
Sales are zero
Investment costs are high
Profits are negative
8. Product – Offer a basic product
Price – Use cost-plus basis to set
Distribution – Build selective
distribution
Advertising – Build awareness
among early adopters and
dealers/resellers
Sales Promotion – Heavy
expenditures to create trial
9. In the growth stage of the product
life cycle, the market has accepted
the product and sales begin to
increase.
Low sales
High cost per customer acquired
Negative profits
Innovators are targeted
Little competition
10. Product – Offer product
extensions, service, warranty
Price – Penetration pricing
Distribution – Build intensive
distribution
Advertising – Build awareness and
interest in the mass market
Sales Promotion – Reduce
expenditures to take advantage of
consumer demand
11. In the maturity stage of the
product life cycle, sales
will reach their peak.
Sales peak
Low cost per customer
High profits
Middle majority are targeted
Competition begins to decline
12. Product – Diversify brand and
models
Price – Set to match or beat
competition
Distribution – Build more intensive
distribution
Advertising – Stress brand
differences and benefits
Sales Promotion – Increase to
encourage brand switching
13. In the decline stage of the product
life cycle, sales will begin to decline
as the product reaches its
saturation point.
Declining sales
Low cost per customer
Declining profits
Laggards are targeted
Declining competition
14. Product – Phase out weak items
Price – Cut price
Distribution – Use selective
distribution: phase out
unprofitable outlets
Advertising – Reduce to level
needed to retain hard-core
loyalists
Sales Promotion – Reduce to
minimal level