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The Product Life Cycle
The product life cycle outlines the stages a product undergoes from development and introduction to growth, maturity, and decline. During the introduction phase, there are no sales initially, leading to gradual sales growth with strategic pricing and advertising. As competition intensifies during maturity, sales slow down, and prices may need to be reduced, ultimately leading to decline as new products emerge.
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The Product Life Cycle
- 1. T H EP R O D U C T L I F E C Y C L E T H E M A R K E T I N G M I X : P R O D U C T Mudassir Raza
- 2. T H EP R O D U C T L I F E C Y C L E The product life cycle describes the stages a product will pass through from its introduction, through its growth until it is mature, and then finally its decline.
- 3. F I RS T , A P R O D U C U C T I S D E V E L O P E D . T H E P R O T O T Y P E I S T E S T E D A N D M A R K E T R E S E R A C H C A R R I E D O U T B E F O R E T H E P R O D U C T I S L A U N C H E D O N T O T H E M A R K E T . T H E R E A R E N O S A L E S A T T H I S T I M E .
- 4. I T IS T H E N I N T R O D U C E D O R L A U N C H E D O N T O T H E M A R K E T . S A L E S G R O W S L O W L Y A T F I R S T B E C A U S E M O S T C O N S U M E R S A R E N O T A W A R E O F I T S E X I S T E N C E . P R I C E S K I M M I N G M A Y I S U S E D U N T I L T H E P R O D U C T I S A N E W D E V E L O P M E N T A N D T H E R E A R E N O C O M P E T I T O R S . N O P R O F I T S A R E M A D E A T T H I S P O I N T A S D E V E L O P M E N T C O S T S H A V E N O T Y E T B E E N R E C O V E R E D .
- 5. S A LE S S T A R T T O G R O W R A P I D L Y . T H E A D V E R T I S I N G I S C H A N G E D T O P E R S U A S I V E A D V E R T I S I N G T O E N C O U R A G E B R A N D L O Y A L T Y . P R I C E S A R E R E D U C E D A L I T T L E A S N E W C O M P E T I T O R S E N T E R T H E M A R K E T A N D T R Y T O T A K E S O M E C U S T O M E R S . P R O F I T S S T A R T T O B E M A D E A S T H E D E V E L O P M E N T C O S T A R E C O V E R E D .
- 6. M A TU R I T Y . S A L E S N O W I N C R E A S E D O N L Y S L O W L Y . C O M P E T I T I O N B E C O M E S I N T E N S E A N D P R I C I N G S T R A T E G I E S A R E N O W C O M P E T E T I V E O R P R O M O T I O N A L P R I C I N G . A L O T O F A D V E R T I S I N G I S U S E D T O M A I N T A I N S A L E S G R O W T H . P R O F I T S A R E A T T H E I R H I G H E S T .
- 7. S A LE S R E A C H S A T U R A T I O N P O I N T A N D S T A B I L I S E A T T H E I R H I G H E S T P O I N T . C O M P E T E T I O N P R I C I N G I S U S E D . A H I G H A N D S T A B L E L E V E L O F A D V E R T I S I N G I S U S E D , B U T P R O F I T S S T A R T T O F A L L A S S A L E S A R E S T A T I C A N D P R I C E S H A V E T O B E R E D U C E D T O B E C O M P E T E T I V E .
- 8. S A LE S O F T H E P R O D U C T D E C L I N E A S N E W P R O D U C T S C O M E A L O N G O R B E C A U S E T H E P R O D U C T H A S L O S T I T S A P P E A L .
- 10. H O WS T A G E S O F T H E P R O D U C T L I F E C Y C L E I N F L U E N C E M A R K E T I N G D E C I S I O N S P r i c i n g A b r a n d e d p r o d u c t i s l i k e l y t o b e s o l d a t a h i g h p r i c e w h e n i t i s f i r s t i n t r o d u c e d t o t h e m a r k e t - a s l o w p r i c e c o u l d g i v e t h e w r o n g m e s s a g e a b o u t q u a l i t y . P r i c e s a r e l i k e l y t o b e r e l a t i v e l y h i g h e r t h a n t h o s e o f c o m p e t i t o r s i n t h e g r o w t h s t a g e a s t h e p r o d u c t m a y s t i l l b e n e w e r t h a n t h o s e o f r i v a l s . i n t h e s a t u r a t i o n o r m a t u r i t y s t a g e , t h e p r i c e s a r e l i k e l y t o b e r e d u c e d a s c o m p e t i t o r s m a y h a v e l a u n c h e d n e w e r v e r s i o n s o f t h e i r o w n p r o d u c t s . S u b s t a n t i a l p r i c e d i s c o u n t m i g h t b e o f f e r e d d u r i n g t h e d e c l i n e s t a g e .
- 11. H O WS T A G E S O F T H E P R O D U C T L I F E C Y C L E I N F L U E N C E M A R K E T I N G D E C I S I O N S P r o m o t i o n S p e n d i n g o n p r o m o t i o n w i l l b e h i g h e r a t t h e i n t r o d u c t i o n s t a g e . i f i t i s a c o m p l e t e l y n e w b r a n d , a c l e a r i d e n t i t y n e e d t o b e e s t a b l i s h e d . A d v e r t i s i n g w o u l d b e p r o b a b l y b e r e d u c e d i n l a t e r s t a g e s . P r o m o t i o n s p e n d i n g m i g h t b e i n c r e a s e d a g a i n i f t h e b u s i n e s s d e c i d e s t o a d o p t a n e x t e n s i o n s t r a t e g y .
- 12. E X TE N D I N G P R O D U C T L I F E C Y C L E
- 13. E X TE N D I N G P R O D U C T L I F E C Y C L E
- 14. T H AN K Y O U