Plc Product Life Cycle
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e f i L
Slide 1
t c du cle o Pr Cy
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 2
PLC - Product Life Cycle
• The purpose of having a diagram is to help you understand the changes, in the revenue that is made, as you go through the different stages of selling a product, from the beginning, to the end.
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 3
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Digital cameras Mini-disc Electric cars
Page 336 in 8th Edition Page 260 in 9th Edition
DVD VR* *= virtual reality ppt slides created
The time at each stage varies and Copyright by Prof. Tim Richardson greatly www. witiger. com
e f i L
Slide 4
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Introduction The seller tries to stimulate demand Promotion campaigns to get increase public awareness Explain how the product is used, • Features Advantages
Benefits
You will lose money, but you expect to make profits in the future ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 5
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Introduction •Sales are low, and profits are below the line because your costs are greater than the amount of money you make •you have “negative” profit •Need to spend a lot of money on promotion
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 6
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Growth A lot is sold - The seller tries to sell as much as possible Other competitor companies watch, and decide about joining in with a competitor product “success breeds imitation” (Text) Growth will continue until too many competitors in the market - and the market is saturated ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 7
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Growth •At the end of the growth stage, profits start to decline when competition means you have to spend more money on promotion to keep sales going. •Spending money on promotion cuts into your profit
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 8
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Maturity Many competitors have joined - the market is saturated The only way to sell is to begin to lower the price - and profits decrease It is difficult to tell the different between products since most have the same F.A.B. - Features, Advantages & Benefits Competition can get “Nasty” and commercials are intense ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 9
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Maturity “Persuasive Promotion” becomes more important during this stage That is to say, you have commercials almost begging the customer to still buy your product because you still make it just as good.
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 10
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Decline Newer products are now more attractive - even a low low price does not make consumers want to buy. Profit margin declines - and so the only way to make money is to sell a high volume
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 11
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Decline To increase volume you try to 1. Increase the number of customers - get new customers 2. Increase the amount each customer uses
ppt slides created
and Copyright by Prof. Tim Richardson
the g din ife n e Ex t d u c t L Pro le C yc www. witiger. com
e f i L
t c u le dExtending o Pr Cyc
Market Modification
Slide 12
the Product Life Cycle
1. Increase frequency of use by present customers 2. Add new users 3. Find new uses
Product Modification
4. Change product quality or packaging
Purpose: to sell more product and cover original investment ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 13
Extending the product Cycle
• to prevent the product going into decline you modify the market MARKET MODIFICATION Ex • you look for new consumers by changing am pl es the product so it has new users - and then fro new customers (Baking soda, vinegar, Q-m cl as tips, Avon Skin So Soft, vaseline s ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 14
Extending the product Cycle
• MARKET MODIFICATION examples Windex for cleaning jewelry Ex Javex bleach for toilets am pl es Lemons for hair colouring fro m cl beer for hair as s Bounce for in the garbage, gym bag etc. ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 15
Extending the product Cycle
• to prevent the product going into decline you modify the product
Ex a
m pl es
fro
m
cla
ss
PRODUCT MODIFICATION • adding new features, variations, model varieties will change the consumer reaction - create more demand • therefore you attract more users ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
ss cla m fro
PRODUCT MODIFICATION examples condoms - colours, features CD players chip flavours - many kinds flavoured tongue depressors couples seats at movie theatre
Ex a
• • • • • • •
Extending the product Cycle
m pl es
t c du cle o Pr Cy
Slide 16
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Extending the product Cycle
PRODUCT MODIFICATION examples continued digital sound at theatres
Ex a
m pl es
fro
m
cla
ss
• • •
Slide 17
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 18
Overlap of Life Cycle for Products A and B
WINDOWS 3.1
WINDOWS 95
1991 ppt slides created
1995 by Prof. Tim1996 and Copyright Richardson
1997 www. witiger. com
e f i L
Slide 19
t c du cle o Pr Cy
Most people have a problems thinking this theory is relevant because they apply it to specific product brands it should be applied only to a general product category
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 20
Length of Cycle Stages
• Products move through the cycle at different speeds • sometimes introduction is very long, or very short, depending on how easy it is for the public to understand the F.A.B. • Not all products follow the same pattern
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 21
Life Cycle Length
• Some products move very fast because they are new and have no competition so the intro stage is short, and they go direct to growth stage.
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 22
Life Cycle Length
Because of • technology and • globalization • the introduction stage is getting very short • some cycles more quickly to maturity, then have many product modifications so the decline stage drags on and on
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 23
Speed of the PLC
• Since the Intro Stage is getting shorter, and sometimes the Growth Stage doesn’t last too long (because competitors move in) companies must continually come up with new products • You can tell when they are in the growth stage because this is when they introduce new model variations, and Page 340 some improvements to the product ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 24
t c du cle o Pr Cy
Alternative Product Life Cycles
Pocket pagers Tamagachi Failures that do not go through the 4 steps
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 25
t c du cle o Pr Cy
• Fashions - currently popular products that tend to follow recurring life cycles eg. Wide lapels, 3 button suits, high heels vs. wedge heel • “the currently acceptable style” p. 265 ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 26
t c du cle o Pr Cy
• Fads - Fashions with abbreviated life cycles - only popular with certain groups • - music • - fast food • - children’s toys Page 265 • - “adult toys” ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 27
t c du cle o Pr Cy
Eg. Watches w red LCD ppt slides created
and Copyright by Prof. Tim Richardson
Page 188
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 28
Product Life Cycle Considerations in Marketing Strategy
• Understand that profits have a predictable pattern • in the early stages, focus is on product information • in the later stages, focus is on brand promotion • use market segmentation in maturity stage to maintain strong core customer basis Page 188 ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 29
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Digital cameras Mini-disc Electric cars
Monopoly *= virtual reality ppt slides created
Monopolistic
Oligopoly
Pure Competition
The time at each stage varies and Copyright by Prof. Tim Richardson greatly www. witiger. com
Slide 1
t c du cle o Pr Cy
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 2
PLC - Product Life Cycle
• The purpose of having a diagram is to help you understand the changes, in the revenue that is made, as you go through the different stages of selling a product, from the beginning, to the end.
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 3
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Digital cameras Mini-disc Electric cars
Page 336 in 8th Edition Page 260 in 9th Edition
DVD VR* *= virtual reality ppt slides created
The time at each stage varies and Copyright by Prof. Tim Richardson greatly www. witiger. com
e f i L
Slide 4
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Introduction The seller tries to stimulate demand Promotion campaigns to get increase public awareness Explain how the product is used, • Features Advantages
Benefits
You will lose money, but you expect to make profits in the future ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 5
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Introduction •Sales are low, and profits are below the line because your costs are greater than the amount of money you make •you have “negative” profit •Need to spend a lot of money on promotion
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 6
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Growth A lot is sold - The seller tries to sell as much as possible Other competitor companies watch, and decide about joining in with a competitor product “success breeds imitation” (Text) Growth will continue until too many competitors in the market - and the market is saturated ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 7
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Growth •At the end of the growth stage, profits start to decline when competition means you have to spend more money on promotion to keep sales going. •Spending money on promotion cuts into your profit
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 8
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Maturity Many competitors have joined - the market is saturated The only way to sell is to begin to lower the price - and profits decrease It is difficult to tell the different between products since most have the same F.A.B. - Features, Advantages & Benefits Competition can get “Nasty” and commercials are intense ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 9
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Maturity “Persuasive Promotion” becomes more important during this stage That is to say, you have commercials almost begging the customer to still buy your product because you still make it just as good.
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 10
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Decline Newer products are now more attractive - even a low low price does not make consumers want to buy. Profit margin declines - and so the only way to make money is to sell a high volume
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 11
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Decline To increase volume you try to 1. Increase the number of customers - get new customers 2. Increase the amount each customer uses
ppt slides created
and Copyright by Prof. Tim Richardson
the g din ife n e Ex t d u c t L Pro le C yc www. witiger. com
e f i L
t c u le dExtending o Pr Cyc
Market Modification
Slide 12
the Product Life Cycle
1. Increase frequency of use by present customers 2. Add new users 3. Find new uses
Product Modification
4. Change product quality or packaging
Purpose: to sell more product and cover original investment ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 13
Extending the product Cycle
• to prevent the product going into decline you modify the market MARKET MODIFICATION Ex • you look for new consumers by changing am pl es the product so it has new users - and then fro new customers (Baking soda, vinegar, Q-m cl as tips, Avon Skin So Soft, vaseline s ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 14
Extending the product Cycle
• MARKET MODIFICATION examples Windex for cleaning jewelry Ex Javex bleach for toilets am pl es Lemons for hair colouring fro m cl beer for hair as s Bounce for in the garbage, gym bag etc. ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 15
Extending the product Cycle
• to prevent the product going into decline you modify the product
Ex a
m pl es
fro
m
cla
ss
PRODUCT MODIFICATION • adding new features, variations, model varieties will change the consumer reaction - create more demand • therefore you attract more users ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
ss cla m fro
PRODUCT MODIFICATION examples condoms - colours, features CD players chip flavours - many kinds flavoured tongue depressors couples seats at movie theatre
Ex a
• • • • • • •
Extending the product Cycle
m pl es
t c du cle o Pr Cy
Slide 16
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Extending the product Cycle
PRODUCT MODIFICATION examples continued digital sound at theatres
Ex a
m pl es
fro
m
cla
ss
• • •
Slide 17
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 18
Overlap of Life Cycle for Products A and B
WINDOWS 3.1
WINDOWS 95
1991 ppt slides created
1995 by Prof. Tim1996 and Copyright Richardson
1997 www. witiger. com
e f i L
Slide 19
t c du cle o Pr Cy
Most people have a problems thinking this theory is relevant because they apply it to specific product brands it should be applied only to a general product category
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 20
Length of Cycle Stages
• Products move through the cycle at different speeds • sometimes introduction is very long, or very short, depending on how easy it is for the public to understand the F.A.B. • Not all products follow the same pattern
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 21
Life Cycle Length
• Some products move very fast because they are new and have no competition so the intro stage is short, and they go direct to growth stage.
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 22
Life Cycle Length
Because of • technology and • globalization • the introduction stage is getting very short • some cycles more quickly to maturity, then have many product modifications so the decline stage drags on and on
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 23
Speed of the PLC
• Since the Intro Stage is getting shorter, and sometimes the Growth Stage doesn’t last too long (because competitors move in) companies must continually come up with new products • You can tell when they are in the growth stage because this is when they introduce new model variations, and Page 340 some improvements to the product ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 24
t c du cle o Pr Cy
Alternative Product Life Cycles
Pocket pagers Tamagachi Failures that do not go through the 4 steps
ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 25
t c du cle o Pr Cy
• Fashions - currently popular products that tend to follow recurring life cycles eg. Wide lapels, 3 button suits, high heels vs. wedge heel • “the currently acceptable style” p. 265 ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 26
t c du cle o Pr Cy
• Fads - Fashions with abbreviated life cycles - only popular with certain groups • - music • - fast food • - children’s toys Page 265 • - “adult toys” ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 27
t c du cle o Pr Cy
Eg. Watches w red LCD ppt slides created
and Copyright by Prof. Tim Richardson
Page 188
www. witiger. com
e f i L
t c du cle o Pr Cy
Slide 28
Product Life Cycle Considerations in Marketing Strategy
• Understand that profits have a predictable pattern • in the early stages, focus is on product information • in the later stages, focus is on brand promotion • use market segmentation in maturity stage to maintain strong core customer basis Page 188 ppt slides created
and Copyright by Prof. Tim Richardson
www. witiger. com
e f i L
Slide 29
t c du cle o Pr Cy
Stages in the Product Life Cycle
Introduction
Growth
Maturity
Decline
Digital cameras Mini-disc Electric cars
Monopoly *= virtual reality ppt slides created
Monopolistic
Oligopoly
Pure Competition
The time at each stage varies and Copyright by Prof. Tim Richardson greatly www. witiger. com
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