PRODUCT LIFE

CYCLE

Raul Krishnan
DEFINITION OF A
PRODUCT:-
A product is a good that can be offered to a market for attention, acquisition,
use, or consumption that might fulfill a need or a desire.
The definition covers physical objects, services, persons, places,
organizations and ideas.
A product introduced in the market undergoes different stages
of growth until it is phased out of the market.

These stages constitute the PLC.

Product life cycle represents the sales and profits generated

by a product over a period.

Factors governing the changes in a PLC are as follows:

1. Changing customer needs.

2. Launch of better, more efficient products.

 Costs are  Sales volume  Sales volume peaks
 Sales volume
either increase and market saturation
decline.
extremely significantly. is reached.
 Prices and
high or low.  Profits increase.  Increase in number of
profitability
 Low initial  Public competitors in the
decrease.
sales volumes. awareness market.
 Profit becomes
 No rises.  Price tend to increase
more a
competition.  Increased owing to multiple
challenge of
 Demand competition competing products.
 Brand differentiation production’
should be results in
distribution
created. decreased and feature
efficiency than
prices. diversification is
sales growth.
focused on to sustain
or grow market share.
 CONCLUSION
Product life cycle concept shows a framework to
spot the occurrence of opportunities and threats in a
product market and the industry.
This can help the firms to reassess their objectives,
strategies, and different elements of marketing
programme.