In introduction to marketing, the products or services may have its own life-cycle. It is important to know what are the stages currently for the products and services to determine the strategies that should be apply later on.

1. Chapter 6
Product Life-Cycle
Strategies
Prepared by:
Nor Izzuddin Bin Norrahman
Lecturer of Management, Banking & Islamic Finance
Astin College

2. Introduction…
• After launching the new product,
management wants the product to enjoy a
long happy life.
• It will not sell forever, but the company want
to earn a decent profit to cover the risk and
the effort that they went into when they
launched it.
• Every product has its own life-cycle although
the exact shape and length is not known in
advance.

3. Product Life Cycle (PLC)

4. Product Development
• Product development begins when the
company finds and develops a new-products
idea.
• During product development, sales are ZERO
and the company’s investment costs mount.
• Income = 0
• Cost >

5. Introduction Stage
• Introduction is a period of slow sales growth
as the product is introduced in the market.
• Profits are non-existent in this stage because
of the heavy expenses of product
introduction.
• Income = Costs

6. Growth Stage
• Growth is a period of rapid market acceptance
and increasing profits.
• Income > Costs

7. Maturity Stage
• Maturity is a period of slowdown in sales
growth because the product has achieved
acceptance by most potential buyers.
• Profit level off or decline because of increased
marketing outlays to defend the product
against competition.

8. Decline Stage
• Decline is the period when sales fall off and
profits drop.
• Sale <
• Income <

9. • Not all product follow this product life-cycle.
• Some products are introduced and die quickly,
others stay in the mature stage for a long,
long, long, long, long time.
• Some enter the decline stage and are then
cycled back into growth stage through strong
promotion or repositioning.

10. The PLC
concept can
be applied to
what are
known as
Styles
FashionsFads

11. Styles
• Is a basic distinctive mode of expression.
• Examples: House, clothes, art.
• Once a style is invented, it may last for
generations, passing in and out of the vogue.
• A style has a cycle showing several periods of
renewed interest.

13. Fashions
• A fashion is a currently accepted or popular
style in a given field.
• Example:?
• Fashion tends to grow slowly, remain popular
for a while, then decline slowly.

15. Fads
• Fads are fashions that ENTER quickly, are
adopted with great zeal, peak early, and
decline very quickly.
• They last only a short time and tend to attract
only limited following.
• Examples?

17. PLC Characteristics

18. PLC Strategies

19. The End…question?