Agricultural marketing product life cycle.pptx

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ASSIGNMENT ON:-
PRODUCT LIFE CYCLE
SUBMITTED TO:-
Dr.Meenakshi Chandra
(Department of Agricultural Economics
Submitted by:-
Amit Sahu
2nd year
20221685

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 MEANING
 All products have certain length of life during which they
pass through certain identifiable stages. The PLC is a
conceptual representation of product ageing process. Like
your life is divided into stages same as life of a product is
also divided.
 Product start with introduction in the market for the purpose
of sale. The demand of that product is gradually increased in
the market & it reach to its maximum, from where it start
decline. It is effective lifespan of a product.

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 DEFINITIONS
Acc to Philip kotler:
The Plc is an attempt to recognize the distinct stages in the sales
history of the product.”
Acc to William J. Stanton:
“The Product life cycle concept is the explanation of the product
from its birth to death as a product exists in different stages & in
different competitive environments”

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 INTRODUCTION STAGE
It is the 1st stage, wherein the product is launched in the market with
full scale production & marketing programme.
• The product is a new one. It means “a product that opens up an
entirely new market, replaces an existing product or significantly
broadens the market for an existing product.”
In this stage sales grow at a very lower rate because it is not an
effective demand.

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 CHARACTERISTICS
 Low & slow sales.
 High product price.
 Heavy promotional expenses.
 Lack of knowledge.
 Low profits.
 Narrow product lines.

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 GROWTH STAGE
 Once the market has accepted the product, sales begin to
rise & product enter its 2nd stage.
 The product achieves considerable & widespread
approval in the market. The sales & profits increases at an
accelerated rate.
 In this effective distribution, advertising & sales
promotion are considered as the key factors.

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 CHARACTERISTICS
 Rapid increase in sales.
 Product improvements.
 Increase in competition.
 Increase in profits.
 Reduction in price.
 Strengthening the distribution channel.

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 MATURITY STAGE
Market becomes saturated because the household
demand is satisfied & distribution channels are full.
The product has to face keen competition which
brings pressure on prices. Though the sales of the
product rises but at a lower rate. Profit margin
however decline due to keen competition.

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 CHARACTERISTICS
• Sales increases at decreasing rate.
• Normal promotional expenses.
• Uniform & lower prices.
• Product modifications.
• Dealer’s support.
• Profit margin decreases

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 DECLINE STAGE
 This is the finial stage, sooner or later actual
sales begin to fall under the impact of new
product competition & changing consumer
behavior. The sales & profits fall down sharply
& the promotional expenditure has to be cut
down drastically.

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 CHARACTERISTICS
 Rapid decrease in sales.
 Further decrease in prices
 No promotional expenses.
 Suspension of production work.

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 FACTORS AFFECTING THE PRODUCT LIFE
CYCLE
 Rate of technological change.
 Rate of market acceptance.
 Competitor’s entry.
 Economic & managerial forces
 Risk bearing capacity
 Government policy

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 IMPORTANCE OF PRODUCT LIFE CYCLE
 Helpful in sales forecasting.
 Helpful as a predictive tool.
 Helpful as a planning tool.
 Helpful as a control tool.
 Helpful in framing marketing programme.
 Helpful in price determination.
 Development of new product.
 Comparison of different products.

Agricultural marketing product life cycle.pptx

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Agricultural marketing product life cycle.pptx