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FACTORS AFFECTING PRODUCT LIFE CYCLE
1.Difficulty in determining the stage of the product
2.Complications in determining the length of each stage.
3. Not necessary that every stage can be applicabe to every product.
4.It alone cannot device for marketing success.
5. Well managed products may never decline or abandon and may live for decades. For eg. P&G, Hindustan Unilever etc.
-> Happens when Decline Stage cannot be postponed.
-> Company abandons the product and launches a new model/product with new features.
-> Abandonment is necessary in order to put the resources to better use.
>>Technology- Higher the rate of technological Changes, shorter is the product life cycle.
>>Market Acceptance-Faster is the acceptance of a product by customers, shorter is the product life cycle.
>> Ease of Entry of Competitors- Easier the entry, shorter is the product life cycle.
>>Risk Bearing Capacity-More is the risk bearing capacity, more is the product life cycle.
>>Economic and Managerial Strength-Good Economic and Managerial Strength implies longer PLC.
>>Patent Protection-A patented product will have a longer life cycle.
CHARACTERISTICS
1.Displacement of product
2.Sharp Fall in sales.
3.Expenditure of promotion has
to be cut down.
STRATEGIES
1.New Features.
2.Attractive Packaging
3. Economy Packs/Models may be used for revival.
4. Low Promotion to ensure low distribution costs.
STRATEGIES
1.Product Differentiation
2.Extended Warranty Period
3.Use of reusable packaging
4.Development of new markets.
5.New Uses of the product.
CHARACTERISTICS
1.Profit Fall Due to intensified
Competition.
2.Decreased Prices.
3.Emphasis on new market
segments and Product
Improvement.
CHARACTERISTICS
1.Demand Expands
2. Price Falls
3.Competition Increases
4.Distribution Widens
STRATEGIES
1.Advertisement and Publicity
2. New Versions of product->For Different groups
3. Strengthening the distribution of channels to ensure availability.
4.Creation of Brand Image.
5.Competitive Prices.
6. Emphasis on Customer Service
STRATEGIES TO BE ADOPTED-
-Advertisement and publicity
-Attractive gifts
-Attractive Discounts to Dealers
-High/Low Price depending
on the Competition
in the market.
CHARACTERISTICS
-Prices are High.
-Limited Markets
-Low Product Innovation
-Low sales due to lack of knowledge
STAGES IN PRODUCT LIFE CYCLE
Advantages of forecasting Product life cycle are-
1.Advance Steps can be taken before the decline stage like Product Modification, Pricing Strategies, distinctive style etc.
2. Preparation of an effective product plan by knowing the product life cycle.
3.Helps in finding new uses of the product for the expansion of the market during the growth stage and for extending the maturity stage.
4.Latest technological changes can be adopted to improve the product quality, features and design.
5. The product which is not in demand can be abandoned.
1. All products generally pass through the 5 stages of PLC.
2. No clear demarcation between the subsequent stages.
3.Different products don't have identical life cycles.
4.At the same time, the product might be at different stages in different market segments.
5. A Specific time limit.
WHAT IS A PRODUCT LIFE CYCLE?
Every Product goes through a number of stages, namely-
1.Introductory Stage
2.Growth Stage
3. Maturity Stage
4.Decline Stage
5. Abandonment
These stages are collectively referred to as Product Life Cycle.