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    Product Life-Cycle

    Uploaded by

    Anjali Mithwani
    The document discusses the product life cycle, which outlines the typical stages of introduction, growth, maturity, and decline that products go through over time. It provides details on sales, costs, profits, and marketing objectives at each stage. For example, in the introduction stage sales are low but costs are high, resulting in negative profits. The goal is to create awareness and trials. In the growth stage, sales and profits rise as costs fall and the goal is to maximize market share. The document also outlines the new product development process and key steps including idea generation, screening, concept development and testing, marketing strategy, business analysis, test marketing, and commercialization.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Product Life-Cycle

    Uploaded by

    Anjali Mithwani
    28 views16 pages
    The document discusses the product life cycle, which outlines the typical stages of introduction, growth, maturity, and decline that products go through over time. It provides details on sales, costs, profits, and marketing objectives at each stage. For example, in the introduction stage sales are low but costs are high, resulting in negative profits. The goal is to create awareness and trials. In the growth stage, sales and profits rise as costs fall and the goal is to maximize market share. The document also outlines the new product development process and key steps including idea generation, screening, concept development and testing, marketing strategy, business analysis, test marketing, and commercialization.

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    Plc

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    The document discusses the product life cycle, which outlines the typical stages of introduction, growth, maturity, and decline that products go through over time. It provides details on sales, costs, profits, and marketing objectives at each stage. For example, in the introduction stage sales are low but costs are high, resulting in negative profits. The goal is to create awareness and trials. In the growth stage, sales and profits rise as costs fall and the goal is to maximize market share. The document also outlines the new product development process and key steps including idea generation, screening, concept development and testing, marketing strategy, business analysis, test marketing, and commercialization.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    28 views16 pages

    Product Life-Cycle

    Uploaded by

    Anjali Mithwani
    The document discusses the product life cycle, which outlines the typical stages of introduction, growth, maturity, and decline that products go through over time. It provides details on sales, costs, profits, and marketing objectives at each stage. For example, in the introduction stage sales are low but costs are high, resulting in negative profits. The goal is to create awareness and trials. In the growth stage, sales and profits rise as costs fall and the goal is to maximize market share. The document also outlines the new product development process and key steps including idea generation, screening, concept development and testing, marketing strategy, business analysis, test marketing, and commercialization.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    Product Life-Cycle

    Product Life Cycle

    Sales and
    Profits ($)

    Sales

    Profits

    Time
    Product Introduction Growth Maturity Decline
    Develop-
    ment

    Losses/
    Investments ($)
    Introduction Stage of the PLC

    Sales Low sales


    Costs High cost per customer
    Profits Negative
    Create product awareness
    Marketing Objectives
    and trial
    Product Offer a basic product
    Price Use cost-plus
    Distribution Build selective distribution
    Build product awareness
    Advertising among early adopters and
    dealers
    Growth Stage of the PLC

    Sales Rapidly rising sales


    Costs Average cost per customer
    Profits Rising profits
    Marketing Objectives Maximize market share
    Offer product extensions,
    Product service, warranty
    Price Price to penetrate market
    Distribution Build intensive distribution
    Advertising Build awareness and
    interest in the mass market
    Maturity Stage of the PLC

    Sales Peak sales


    Costs Low cost per customer
    Profits High profits
    Marketing Objectives Maximize profit while defending
    market share
    Product Diversify brand and models
    Price to match or best
    Price competitors
    Build more intensive
    Distribution distribution
    Advertising Stress brand differences and
    benefits
    Decline Stage of the PLC
    Sales Declining sales
    Costs Low cost per customer
    Profits Declining profits
    Marketing Objectives Reduce expenditure
    Product Phase out weak items
    Price Cut price
    Go selective: phase out
    Distribution
    unprofitable outlets
    Advertising Reduce to level needed to retain
    hard-core loyal customers
    THANK YOU
    New Product Development
    New Product Development Process
     Idea Generation and Screening
     Concept Development and Testing
     Marketing Strategy
     Business Analysis
     Product Development
     Test Marketing
     Commercialization
    Step 1. Idea Generation

    Systematic Search for New Product


    Ideas
    • Internal sources
    • Customers
    • Competitors
    • Distributors
    • Suppliers
    Step 2. Idea Screening

     Process to spot good ideas and drop poor


    ones
     Criteria
    ◦ Market Size
    ◦ Product Price
    ◦ Development Time & Costs
    ◦ Manufacturing Costs
    ◦ Rate of Return
    3. Choose the Best One
    2. Concept Testing - Test the
    Product Concepts with Groups
    of Target Customers
    1. Develop Product Ideas into
    Alternative
    Product Concepts
    Testing
    Step 3. Concept Development &
    Marketing Strategy Statement
    Formulation
    Part One - Overall:
    Target Market
    Planned Product Positioning
    Sales & Profit Goals
    Market Share
    Part Two - Short-Term:
    Product’s Planned Price
    Distribution
    Marketing Budget

    Part Three - Long-Term:


    Sales & Profit Goals
    Marketing Mix Strategy
    If Yes, Move to
    Product Development
    If No, Eliminate
    Product Concept
    Business Analysis
    Review of Product Sales, Costs,
    and Profits Projections to See if
    They Meet Company Objectives
    Step 6. Product Development
    Step 5. Business Analysis
    Step 7. Test Marketing

    Standard Controlled
    Test Market Test Market
    Full marketing campaign A few stores that have
    in a small number of agreed to carry new
    representative cities. products for a fee.

    Simulated
    Test Market
    Test in a simulated
    shopping environment
    to a sample of
    consumers.
    THANK YOU

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