Mapping the Product Life Cycle (PLC)
MKT/421
Product Life Cycle Goals
To understand the Product Life Cycle (PLC)Understand the PLC and the different stagesExamine each stage
PLC Concept and Importance
“Describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline”(Kerin & Hartley, 2017).Reduces market entry costsExtends the life cycle as it moves through the different phasesAlerts the company of the health of a product in relation to the market
Role Pricing Strategy
“Refers to method companies use to price their products or services” (Suttle, 2018).All companies, no matter the size, base their pricing on production, labor, and advertising expenses and add on a percentage to make a profit
Apple Inc.
First computer, Apple I, in 1976Apple II in 1977 revolutionized the computer industryIn 1990 posted its highest profits to dateIn 2000, started to create iBook (personal laptop) and branched into MP3 players and media softwareMost profitable from music related products (iPod and iTunes)
Stages of PLC
1st Stage: Introduction
Market to existing customers firstAppeal to tech savvy people who want a personalized music librarySet the stage for future growth
Publicity in magazinesAdvertisingSalesforce calling on intermediaries Sales promotion in form of free samples
2nd Stage: Growth
Simple tactics: captivating advertising and an unmatched online retail user experienceDominated the portable music player industry
Personal selling to intermediariesAdvertising to differentiate a product from competing brands
3rd Stage: Maturity
Turned to key differentiators and redefining productsInnovators were challenged to keep iPod relevant
Reminder advertisingSales promotion in form of discounts, coupons, and eventsLimited personal sellingDirect mail reminders
4th Stage: Decline
Used the decline phase of the iPod’s lifecycle as a way to create new buyersKnown for innovation, redesign, and functionality changes
To phase outLittle money spent on promotions
Possible Implications if PLC is not Monitored
Possible missed opportunitiesNo price adjustmentsNo changes to products or servicesWould not see what products need to be harvested or re-invented
References
Kerin, R. A., & Hartley, S. W. (2017). Marketing (13th ed.). Retrieved from The University of Phoenix eBook Collection database.Suttle, R. (2018). Definition of Pricing Strategy. Retrieved from https://smallbusiness.chron.com/definition-pricing-strategy-4686.html Apple Computer Inc(n.d.). Retrieved from http://www.loc.gov/rr/business/businesshistory/April/apple.html Burst Marketing(n.d.). Retrieved from https://burstmarketing.net/knowledge/newsletters/marketing-product-lifecycle-success-apples-ipod-stage/