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Introduction Stage of the PLC. Sales. Costs. Profits. Marketing Objectives. Product. Price. Distribution. Advertising. Summary of Characteristics, Objectives, & Strategies. Low sales. High cost per customer. Negative or low. Create product awareness & trial. Offer a basic product. - PowerPoint PPT Presentation
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Low sales Low sales
High cost per customerHigh cost per customer
Negative or lowNegative or low
Create product awareness & trialCreate product awareness & trial
Offer a basic productOffer a basic product
Usually is high; use cost-plus formula
Usually is high; use cost-plus formula
High distribution expensesHigh distribution expenses
CostsCosts
ProfitsProfits
MarketingObjectivesMarketingObjectives
ProductProduct
PricePrice
DistributionDistribution
SalesSales
Build product awareness among early adopters &
dealers
Build product awareness among early adopters &
dealersAdvertisingAdvertising
Summary of Characteristics, Objectives, & Strategies
Introduction Stage of the PLC
Rapidly rising salesRapidly rising sales
Average cost per customerAverage cost per customer
Rising profitsRising profits
Maximize market shareMaximize market shareOffer new product features,
extensions, service, and warranty
Offer new product features, extensions, service, and
warrantyPrice to penetrate marketPrice to penetrate market
Increase # of distribution outletsIncrease # of distribution outlets
CostsCosts
ProfitsProfits
MarketingObjectivesMarketingObjectives
ProductProduct
PricePrice
DistributionDistribution
SalesSales
Build awareness and interest in the mass market
Build awareness and interest in the mass market
AdvertisingAdvertising
Summary of Characteristics, Objectives, & Strategies
Growth Stage of the PLC
Peak salesPeak sales
Low cost per customerLow cost per customerHigh profits, then lower profitsHigh profits, then lower profitsMaximize profits while
defending market shareMaximize profits while
defending market share
Diversify brand and modelsDiversify brand and models
Price to match or best competitors
Price to match or best competitors
Build more intensive distributionBuild more intensive distribution
CostsCosts
ProfitsProfits
MarketingObjectivesMarketingObjectives
ProductProduct
PricePrice
DistributionDistribution
SalesSales
Stress brand differences & benefits
Stress brand differences & benefits
AdvertisingAdvertising
Summary of Characteristics, Objectives, & Strategies
Maturity Stage of the PLC
Declining salesDeclining sales
Low cost per customerLow cost per customer
Declining profitsDeclining profits
Reduce expenditure & maintain, reposition, harvest or drop the
product
Reduce expenditure & maintain, reposition, harvest or drop the
product
Phase out weak itemsPhase out weak items
Cut priceCut price
Go selective: phase out unprofitable outlets
Go selective: phase out unprofitable outlets
CostsCosts
ProfitsProfits
MarketingObjectivesMarketingObjectives
ProductProduct
PricePrice
DistributionDistribution
SalesSales
Reduce to level needed to retain hard-core loyal customers
Reduce to level needed to retain hard-core loyal customers
AdvertisingAdvertising
Summary of Characteristics, Objectives, & Strategies
Decline Stage of the PLC
