TOPIC PRODUCT LIFE CYCLE B.COM [4th SEM.]

Transcript:TOPIC PRODUCT LIFE CYCLE B.COM [4th SEM.]:
TOPIC PRODUCT LIFE CYCLE B.COM [4th SEM.] PRESENTED BY; Anita Rani Assistant Professor commerce Dept. Sub: Marketing management MEANING OF PRODUCT LIFE CYCLE The life cycle of a product has many points of similarity with the human life cycle; the product is born, grown lustily, attains dynamic maturity, then enters its declining years. PROCESS OF PRODUCT LIFE CYCLE Market Introduction Stage following are the prime characteristics of this stage Low and slow sales High product price Heavy promotional expenses Lack of knowledge Low profits Narrow product line Market Introduction Stage Following are the main features of this stage Rapid increase in sales Product improvements Increase in competition Increase in profits Reduction in price Strengthening the distribution channel MATURITY STAGE FOLLOWING ARE FEATURES OF THIS STAGE: Sales increases at decreasing rate : Normal promotional expenses: Uniform and lower prices: Product modifications; Dealer’s support: Profit margin decreases: MARKET DECLINE STAGE Following are the main features this stage : Rapid decrease in sales: Further decrease in prices: No promotional expenses: Suspension of production work: UTILITY OF IMPORTANCE OF PRODUCT LIFE CYCLE Its utility or importance may be summarised as under: Helpful in sales forecasting Helpful as a predictive tool Helpful as a planning tool Helpful as a control tool Helpful in framing marketing programe Helpful in price determination Development of new product Comparison of different product EXTENSION OF PRODUCT OF LIFE CYCLE Following steps can be taken up; Product modification: Entry in the new market: Promoting frequent use: Developing different usage: Finding new uses: Use of modern advertising and sales promotion techniques: LIMITATIONS OF PRODUCT LIFE CYCLE Absence of absolute confirmity Stage span fluctuations Difficulty in determining the stage of product life cycle Changes in the product sale Long and prosperous maturity stage THANK YOU