THE STAGES IN THE PRODUCT LIFE CYCLE.pptx

Product Life Cycle

What is the Product Life Cycle?

The Product Life Cycle (PLC) defines the stages that a product moves through in the marketplace as it enters, becomes established, and exits the marketplace. In other words, the product life cycle describes the stages that a product is likely to experience. It is a useful tool for managers to help them analyze and develop strategies for their products as they enter and exit each stage

1. PRODUCT LIFE CYCLE

2. PRODUCT LIFE CYCLE T he amount of time a product goes from being introduced into the market until it's taken off the shelves. Stages of product development

3. Product Life Cycle 1 2 3 4 5 Development Introduction Growth Maturity Decline

4. Little-to-no competition Frequent product modification Limited distribution High marketing and production cost High failure rates SALES REVENUE Initial healthy profit Product becomes popular and recognizable Entrance of competitors Aggressive advertising of the differences between brands Long drop of sales Large inventories of unsold items Elimination of non-essential marketing expenses Organized abandonment A new product needs to be explained, while a mature product needs to be differentiated. Most profitable stage Market saturation Competition is at the highest level Heavy promotions to consumers and dealers Product reaches its maximum potential

5. Designing a New Product

6. Product Development Stages Idea Generation Feasibility Study Development and Testing of Product Design Final Design and Process Plans