Mapping the Product Life Cycle (PLC)

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/