Slide 1:Product Life Cycle Created by,Andrew James Hodgett,Sean, Liu XufangAnn Zhang


Short Introduction :Short Introduction What is the product life cycle, PLC? Read, listen and watch ! Pausing the video, ESC. Resume, F5 Pen and paper or equivalent, A MUST! Just in case you get bored, we shall throw in a joke or two so that you still have our attention


Table of contents, what to expect :Table of contents, what to expect


Product Life Cycle :Product Life Cycle Shows the stages that products go through from development to withdrawal from the market Knowing when to launch a new product or update an existing one can give a business a crucial advantage A seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult, the plant begins to shrink and die out (decline).


Product Life Cycle :Product Life Cycle Each product may have a different life cycle PLC determines revenue earned Contributes to strategic marketing planning May help the firm to identify when a product needs support, redesign, reinvigorating (provide strength, appeal), withdrawal, etc. May help in new product development planning May help in forecasting and managing cash flow


Product Life Cycle :Product Life Cycle The Stages of the Product Life Cycle: Development * Introduction/Launch Growth Maturity Saturation * Decline WithdrawalNo harm in learning more !!!


Quick and short joke :Quick and short joke Two eggs boiling in a pan, one male and one female. The female egg says "Look, I've got a crack" "No good telling me" replies the male egg "I'm not hard yet"


PLC: Development :PLC: Development May come from any of the following Market research – identifies gaps in the market Monitoring competitors Planned research and development (R&D) Creative thinking – inventions Futures thinking – what will people be using/wanting/needing 5,10,20 years hence?


PLC: Introduction :PLC: Introduction Introduction/Launch: Advertising and promotion campaigns Target campaign at specific audience? Monitor initial sales Maximise publicity High cost/low sales


PLC: Growth :PLC: Growth Increased consumer awareness Sales rise Revenues increase Profits may be made Monitor market – competitors reaction?


PLC: Maturity :PLC: Maturity Sales reach peak Cost of supporting the product declines Sales growth likely to be low Market share may be high Competition likely to be greater


PLC: Saturation :PLC: Saturation New entrants likely to mean market is ‘flooded’ Necessity to develop new strategies becomes more pressing: Searching out new markets Developing new uses Re-packaging or format Improving the standard or quality Developing the product range


PLC: Decline and Withdrawal :PLC: Decline and Withdrawal Product outlives/outgrows its usefulness/value Fashions change Technology changes Cost of supporting starts to rise too far Decision to withdraw may be dependent on availability of new products and whether fashions/trends will come around again


Serious questions, funny answers! :Serious questions, funny answers! What did the ocean say to the boat..? Nothing, it just waved! How do you say “really small horse in Chinese”? Tai Ni Po Ni (say it out loud)


The PLC :The PLC Sales Time Development Introduction Growth Maturity Saturation Decline


The PLC: extension :The PLC: extension Sales Time Effects of Extension Strategies More frequent use of the product, Finding new uses or markets, Modifying the product to retain its consumer appeal, Wider product range


The PLC: profits :The PLC: profits Sales/Profits Time PLC and Profits PLC Losses Break Even Profits


PLC: Where does it fit? :PLC: Where does it fit? Windows XP PlayStation 2 and 3 and XBOX 360 Fax machines Coca cola


Interesting facts.. :Interesting facts.. A flashlight is a case for holding dead batteries. Atheism is a non-prophet organization. Borrow money from a pessimist, they don't expect it back. The sex was so good that even the neighbors had a cigarette. If you lend someone $20, and never see that person again; it was probably worth it. You can sleep with anyone who’s rated above 6.. Everyone below 6 you don’t tell your friends.. Women who seek to be equal to men lack ambition


The PLC :The PLC Sales Time Development Introduction Growth Maturity Saturation Decline


Some SHORT MCQ’s and True/False questions to see if you we paying attention… :Some SHORT MCQ’s and True/False questions to see if you we paying attention…


In the Growth stage, there is rapid increase in sales. Which of the following could be the reason? :In the Growth stage, there is rapid increase in sales. Which of the following could be the reason? A. The sales of new tiers accelerates. B. The effects of repeat purchases are starting to be seen, C. The word is getting around about the product D. All of above.


In the Growth stage, there is rapid increase in sales. Which of the following could be the reason? :In the Growth stage, there is rapid increase in sales. Which of the following could be the reason? A. The sales of new tiers accelerates. B. The effects of repeat purchases are starting to be seen, C. The word is getting around about the product D. All of above.


Which of the following is not a problem a marketer needs to face in the Introduction stage? :Which of the following is not a problem a marketer needs to face in the Introduction stage? A. There is a need to gain distribution. B. There heavy price competition in the market. C. The retail trade may be hard to convince unless the product has a USP (unique selling point). D. The decision on the product's price.


Which of the following is not a problem a marketer needs to face in the Introduction stage? :Which of the following is not a problem a marketer needs to face in the Introduction stage? A. There is a need to gain distribution. B. There heavy price competition in the market. Heavy price competition happens in the Maturity stage. C. The retail trade may be hard to convince unless the product has a USP (unique selling point). D. The decision on the product's price.


PLC consists 4 stages: Introduction,Growth, Decline, Withdrawal :PLC consists 4 stages: Introduction,Growth, Decline, Withdrawal TRUE…ORFALSE??!


The PLC consists of 3 stages:Introduction,Maturity,Decline. :The PLC consists of 3 stages:Introduction,Maturity,Decline. There are 7 stages: R&D, Introduction, Growth, Maturity, Saturation, Decline and Withdrawal SO.. FALSE!!


Profit is usually attainable at the Introduction stage :Profit is usually attainable at the Introduction stage TRUE… OR FALSE??!


Profit is usually attainable at the Introduction stage :Profit is usually attainable at the Introduction stage Profit is negative in the Introduction stage,it begins to achieve in the Growth stage. FALSE!


The PLC is more of a guide to what could happen rather than a prescription of what will happen :The PLC is more of a guide to what could happen rather than a prescription of what will happen TRUE… OR FALSE??!


The PLC is more of a guide to what could happen rather than a prescription of what will happen :The PLC is more of a guide to what could happen rather than a prescription of what will happen TRUE!! (Doesn’t true look weird now?)


Thank you for listening :Thank you for listening We hope that you have picked up a thingor two