{"id":196,"date":"2019-07-22T08:52:43","date_gmt":"2019-07-22T08:52:43","guid":{"rendered":"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/?post_type=chapter&#038;p=196"},"modified":"2019-07-22T09:32:38","modified_gmt":"2019-07-22T09:32:38","slug":"product-life-cycle","status":"publish","type":"chapter","link":"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/chapter\/product-life-cycle\/","title":{"rendered":"Product Life Cycle"},"content":{"raw":"<div><span style=\"float: right\"><a href=\"https:\/\/youtu.be\/1JbCJYIU3FI\" target=\"_blank\" rel=\"noopener\"><img src=\"http:\/\/epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/2018\/11\/download.png\" alt=\"epgp books\" width=\"75px\" height=\"75px;\" \/><\/a>\r\n<\/span><\/div>\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">A product is both what a seller has to sell and what a buyer has to buy. People purchase products, because they are capable of realizing some benefits to the purchaser. A product is one which satisfies the needs of the customers.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">According to Philip Kotler, \u201cA product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. It includes objects, services, persons, places, organization and ideas\u201d.<\/p>\r\n<img class=\"aligncenter size-full wp-image-198\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-65.png\" alt=\"\" width=\"823\" height=\"465\" \/>\r\n<div>\r\n\r\n<strong>PRODUCT LIFE CYCLE<\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">Product life cycle is very similar to the human life cycle. Human beings have to pass various stages from his\/her birth till death. Similarly, the product from its birth passes through various stages, until it is finally out from the market. The length of the life-cycle, its duration of each phase and the shape of the curve may differ from product to product, but the whole life cycle passes through certain definite stages. These stages are together referred to as \u2018product life cycle\u2019. The period during which a product lives in the market is termed as \u2018product life-cycle\u2019.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>STAGES IN THE PRODUCT LIFE CYCLE<\/strong><\/p>\r\n&nbsp;\r\n<ul>\r\n \t<li>Introduction stage<\/li>\r\n \t<li>Growth stage<\/li>\r\n \t<li>Maturity stage<\/li>\r\n \t<li>Saturation stage<\/li>\r\n \t<li>Decline stage<\/li>\r\n<\/ul>\r\n<\/div>\r\n<p style=\"text-align: justify\">The following chart depicts the stage of Product Life Cycle clearly<\/p>\r\n<img class=\"aligncenter size-full wp-image-200\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-66.png\" alt=\"\" width=\"807\" height=\"473\" \/>\r\n<div>\r\n\r\n<strong>Introduction stage<\/strong>:\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">This is the most important and beginning stage of the product\u2019<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Most of the product\u00a0 fails in the introduction stage. Why?<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">In this stage, the product is in infant stage. Profit may not be there as there is low sales volume. The product may require heavy advertising and sales promotion. Products are brought cautiously on a trial basis. Weakness can be identified and can be rectified in this stage to avoid heavy loss for the companies.<\/p>\r\n<img class=\"aligncenter size-full wp-image-201\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-67.png\" alt=\"\" width=\"809\" height=\"459\" \/>\r\n\r\n<strong>Characteristics of Introduction stage:<\/strong>\r\n<ul>\r\n \t<li style=\"text-align: justify\">New market segments are opened.<\/li>\r\n \t<li style=\"text-align: justify\">Sales increase rapidly.<\/li>\r\n \t<li style=\"text-align: justify\">Company earns higher profits.<\/li>\r\n \t<li style=\"text-align: justify\">Unit manufacturing costs falls faster.<\/li>\r\n \t<li style=\"text-align: justify\">Competition enters the market.<\/li>\r\n \t<li style=\"text-align: justify\">Competitors engage in frequent price cuts.<\/li>\r\n \t<li style=\"text-align: justify\">Competitors increase promotional activities.<\/li>\r\n<\/ul>\r\n<strong>Growth stage<\/strong>\r\n\r\n<img class=\"aligncenter size-full wp-image-202\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-68.png\" alt=\"\" width=\"411\" height=\"237\" \/>\r\n<div>\r\n\r\n<strong>What is growth stage?<\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">\u2018This is called as market acceptance stage\u2019.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">As the name growth indicates, both sales and profit rise up in this stage. The rise is very rapid. The firm gives top priority to sales volume and quality maintenance may have second preference. Effective distribution and advertising are considered as key factors. Word of mouth advertising leads to more new users. Repeat orders are secured.<\/p>\r\n&nbsp;\r\n\r\n<strong>Maturity Stage<\/strong>:\r\n\r\n<img class=\"aligncenter size-full wp-image-203\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-69.png\" alt=\"\" width=\"417\" height=\"241\" \/>\r\n\r\n\u2018This is the longest stage in the life of a product\u2019.\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">Sales continue to increase but at a decreasing rate. Keen competition brings pressure on prices. Increasing marketing expenditure and falling price will reduce profit. Competitors go for mark-down price by increasing advertising deals. Additional expenses are involved in product modification and also improvement in marketing mix, product mix or style changes, to attract the customers and retain the market. Overall marketing effectiveness becomes the key factor in this stage.<\/p>\r\n<img class=\"aligncenter size-full wp-image-204\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-70.png\" alt=\"\" width=\"414\" height=\"231\" \/>\r\n<div>\r\n<p style=\"text-align: justify\">The saturation stage occurs in the market when all the potential buyers are using the product and we have only replacement sales. Prices may fall rapidly and profit margins\u00a0<span style=\"text-align: initial;font-size: 1em\">may become small unless the firm makes substantial improvements and realizes cost economies.<\/span><\/p>\r\n\r\n<\/div>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>Decline Stage:<\/strong><\/p>\r\n<img class=\"aligncenter size-full wp-image-205\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-71.png\" alt=\"\" width=\"411\" height=\"238\" \/>\r\n<p style=\"text-align: justify\">Once the peak or saturation point is reached, product inevitably enters the decline stage and becomes obsolete. Sales drop severely, competition dwindles, and even the product cannot even stand in the market. A marketer is expected to keep new products ready to fill up the gap created by the demise of existing products.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>SYNOPSIS OF THE PRODUCT LIFE CYCLE CONCEPT:<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">The following table gives a quick recap of what have already learnt about the PLC:<\/p>\r\n<img class=\"aligncenter size-full wp-image-206\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-72.png\" alt=\"\" width=\"530\" height=\"264\" \/>\r\n<div>\r\n<p style=\"text-align: justify\"><strong>BENEFITS OF THE PRODUCT LIFE CYCLE CONCEPTS:<\/strong><\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\">When the firm is able to identify the product life pattern, the management can be cautious in taking advance steps, before the decline stage, by adopting product modification, pricing strategies, style, quality changes etc.,<\/li>\r\n \t<li style=\"text-align: justify\">The firm can prepare an effective product plan, by knowing the PLC of a product.<\/li>\r\n \t<li style=\"text-align: justify\">The PLC will greatly help the management in drawing future plans of the firm<\/li>\r\n \t<li style=\"text-align: justify\">PLC serves as a planning tool to the marketers. It allows a marketer a choice of various strategies at different stages.<\/li>\r\n \t<li style=\"text-align: justify\">PLC is a control tool which allows a comparison of the launched product with previously launched products.<\/li>\r\n \t<li style=\"text-align: justify\">PLC is a forecasting tool which gives an idea of the likely sales growth of a product and its profitability. However, as there are variations in the duration of each stage, its usefulness as a forecasting tool is limited.<\/li>\r\n<\/ul>\r\n<strong>A management may be able to adopt measures to control the PLC. They are:<\/strong>\r\n<ul>\r\n \t<li style=\"text-align: justify\">Creation of new uses by expansion of the market.<\/li>\r\n \t<li style=\"text-align: justify\">Extension of the life at maturity and saturation stage by adopting new packing, repricing or product modification.<\/li>\r\n \t<li style=\"text-align: justify\">Creation of more varieties of the product among current users. For instances, Amul Milk Powder, through advertisement emphasizes many uses, in preparing milk, tea, curd. \u201cIt is like having a dairy in your home\u201d<\/li>\r\n \t<li style=\"text-align: justify\">Adoption of the latest technological changes, fashion changes, market acceptance, etc.,<\/li>\r\n<\/ul>\r\n<\/div>\r\n&nbsp;\r\n\r\n<strong>MANAGEMENT OF PRODUCT LIFE CYCLE:<\/strong>\r\n\r\n<img class=\"aligncenter size-full wp-image-207\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-73.png\" alt=\"\" width=\"410\" height=\"234\" \/>\r\n<div>\r\n<p style=\"text-align: justify\">By timely and effective implementation of specific marketing actions such as through new packaging, repricing or product changes, the life cycle of the product may be extended or stretched out. The most important key to product life cycle management is to forecast the profile of the proposed product\u2019s life cycle even before it is introduced. Then at each stage, the management should anticipate the marketing requirements of the following stage.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Theodore Levitt cities examples of how Du Pont\u2019s nylon, General Food\u2019s Jello, and 3 M\u2019s Scotch Tape, were the beneficiaries of marketing life stretching strategies. For example, \u2018the first nylon introduced had mainly military uses, viz., for parachutes, thread and rope. Nylon then entered the circular knit market and dominated the women\u2019s hosiery business. After some years, the steady rising growth and profit curves began to flatten out and the threat of obsolescence was imminent. Therefore, Du Pont developed measures for revitalizing the sales and profits.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">These measures involved strategies attempting to expand sales by four different methods.<\/p>\r\n\r\n<ul>\r\n \t<li>Promoting more frequent usage of the product among current users.<\/li>\r\n \t<li>Developing more varied usage of the product among current users.<\/li>\r\n \t<li>Creating new uses for the basic material.<\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify\">\u00a7\u00a0\u00a0 In order to develop more varied usage of the product among current users Du Pont began to promote the fashion smartness of tinted hose and later patterned and highly textured hosiery, thereby making hosiery a simple ingredient of fashion. The new uses for basic material were from varied types of hosiery to new uses as rugs, tyres,\u00a0<span style=\"text-align: initial;font-size: 1em\">bearing, etc, Approximate action resulted in consumption actually exceeding 500 million pounds, which would have been only 50 million pounds has these developments not taken.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">MANAGEMENT OF INTRODUCTION STAGE:<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Now we are going to discuss how can the firms manage introduction stage?<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">What are the various strategies implemented in this stage?<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">While launching a new product, marketing mix for each variable can be set at a high or a low level. If we examine price and promotion variable of the marketing mix. There are four major marketing strategies available.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">The strategies implemented in the introduction stage are:<\/strong><\/p>\r\n<img class=\"aligncenter size-full wp-image-208\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-74.png\" alt=\"\" width=\"399\" height=\"372\" \/>\r\n<div>\r\n<p style=\"text-align: justify\"><strong>Rapid Skimming Strategy:<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">The product is new to the market and launched at a high price. Heavy promotion is needed since the product is new. This strategy will be successful if there are people who are unaware of the product, become aware of it and buy it at a price demanded. There is a risk of competition and so the firm has to build up brand preference.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>Slow Skimming Strategy:<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">The product is priced high. Since the product is known to the market, the money spent on promotion is low. The lower promotional cost keeps the marketing expenses in check. It is perceived that potential competition will not around right now.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>Rapid Penetrating Strategy:<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">The product is offered at the lowest possible price. At the same time, since the product is new to the market, promotion is kept at a high level. The objective is to bring about a very fast market penetration. This strategy is suitable for large markets which are highly competitive. The market is price sensitive.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>Slow Penetration Strategy:<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">The price and the promotion are kept low at the time of launch. Lower price leads to fast acceptance of the product. The lower promotional costs keep up healthy profits. In a large market with high awareness level and price sensitiveness, this strategy makes sense. There is some potential of competition.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>MANAGEMENT OF GROWTH STAGE:<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">In this stage, there is a rapid increase in sales. Potential buyers start buying the product. Buyers compare this product with the rival products. The number of outlets is increased. Companies maintain their promotional expenditures at the same or at a slightly raised level to meet competition.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>This stage is more important, the manager should manage by implementing the following strategies<\/strong>.<\/p>\r\n<img class=\"aligncenter size-full wp-image-209\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-75.png\" alt=\"\" width=\"412\" height=\"236\" \/>\r\n<div>\r\n<ul>\r\n \t<li style=\"text-align: justify\">Product quality is improved.<\/li>\r\n \t<li style=\"text-align: justify\">New features are incorporated. The style is improves.<\/li>\r\n \t<li style=\"text-align: justify\">New models are introduced. Flanker products are introduced.<\/li>\r\n \t<li style=\"text-align: justify\">New market segments are tapped.<\/li>\r\n \t<li style=\"text-align: justify\">Enter into new distribution channels.<\/li>\r\n \t<li style=\"text-align: justify\">Brand building promotion is resorted to.<\/li>\r\n \t<li style=\"text-align: justify\">Prices may be lowered to lure the next layer of price-conscious buyers.<\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify\">The firm, by strengthening its promotion and products can secure dominant position in the market.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>MANAGEMENT OF MATURITY STAGE:<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">In this stage, the manufactures gets maximum profit through maximum sales. Price competition is severe. The sales and profit gets down, due the arrival of the substitute products. Hence, the firm should implement effective steps to be in the market.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Strategies implemented in maturity stage<\/strong><span style=\"text-align: initial;font-size: 1em\">:<\/span><\/p>\r\n<img class=\"aligncenter size-full wp-image-210\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-76.png\" alt=\"\" width=\"411\" height=\"236\" \/>\r\n<div>\r\n<ul>\r\n \t<li style=\"text-align: justify\">Improve the quality of the product<\/li>\r\n \t<li style=\"text-align: justify\">Give proper attention to increase the usage among the current customers.<\/li>\r\n \t<li style=\"text-align: justify\">Try to convert non-users into users of the product that is creating new users.<\/li>\r\n \t<li style=\"text-align: justify\">Give more emphasis to advertisement and promotional programmes.<\/li>\r\n \t<li style=\"text-align: justify\">Try to discover new uses for the product.<\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify\">In the maturity stage, the companies can also take the following strategies to stimulate sales.<\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\">Market Modification<\/li>\r\n \t<li style=\"text-align: justify\">Product Modification<\/li>\r\n \t<li style=\"text-align: justify\">Marketing Mix Modification<\/li>\r\n<\/ul>\r\n<strong>Market Modification:<\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">The company may try to expand the market in order to increase sales by adopting the following strategies.<\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\">Enter new market segments<\/li>\r\n \t<li style=\"text-align: justify\">Attract new users<\/li>\r\n \t<li style=\"text-align: justify\">Increase usage among the present customers.<\/li>\r\n \t<li style=\"text-align: justify\">Persuade customers to use the product.<\/li>\r\n \t<li style=\"text-align: justify\">Create new uses of the product.<\/li>\r\n<\/ul>\r\n<\/div>\r\n<p style=\"text-align: justify\">The decline in the sales can be arrested by improving in following aspects:<\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\">Quality improvements like durability, reliability, speed.<\/li>\r\n \t<li style=\"text-align: justify\">Feature improvements like size, materials, and weights.<\/li>\r\n \t<li style=\"text-align: justify\">Style improvements like new models, new styles.<\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify\"><strong>Market Mix Modification:<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">The companies can try to stimulate sales by modifying marketing mix elements.<\/p>\r\n\r\n<ul>\r\n \t<li>Price<\/li>\r\n \t<li>Distribution<\/li>\r\n \t<li>Advertisement<\/li>\r\n \t<li>Personal selling<\/li>\r\n<\/ul>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>MANAGEMENT OF SATURATION STAGE:<\/strong><\/p>\r\n<img class=\"aligncenter size-full wp-image-211\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-77.png\" alt=\"\" width=\"412\" height=\"235\" \/>\r\n<div>\r\n<p style=\"text-align: justify\">In this stage, the manufacturer\u2019s finds difficult to expand the sales volume beyond a particular point, that is, sales are at the peak and further increase is not possible. Since the sales cannot be increased, <strong>the marketing manager should implement the following<\/strong> <strong>strategies:<\/strong><\/p>\r\n&nbsp;\r\n<ul>\r\n \t<li style=\"text-align: justify\">Introduce new models<\/li>\r\n \t<li style=\"text-align: justify\">Pursue new uses for the product<\/li>\r\n \t<li style=\"text-align: justify\">Introduce new package and repricing.<\/li>\r\n \t<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">To increase middlemen\u2019s margin.<\/span><\/li>\r\n \t<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">If the price is high, offer the product on instalment basis<\/span><\/li>\r\n<\/ul>\r\n<\/div>\r\n<strong>MANAGEMENT OF DECLINE STAGE:<\/strong>\r\n\r\n<\/div>\r\n<img class=\"aligncenter size-full wp-image-212\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-78.png\" alt=\"\" width=\"409\" height=\"228\" \/>\r\n<div>\r\n<p style=\"text-align: justify\">This is the last and crucial sage. Sales may decline for a number of reasons like technical advances, arrival of new products at low cost, changes in fashion, customer preference. Sales and profits continue to fall at this stage. If the substitutes are more attractive and in latest fashion, buyers may turn their eyes towards them.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">In this stage, cost control is increasingly important to generate profits by the following measures as suggested by Stanton.<\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\">To improve the product or revitalize it in some way.<\/li>\r\n \t<li style=\"text-align: justify\">To review the marketing and production programmes to be sure that they are quite efficient.<\/li>\r\n \t<li style=\"text-align: justify\">To streamline the product assortment by pruning out unprofitable size, styles, colors and models.<\/li>\r\n \t<li style=\"text-align: justify\">To cut all costs to bare minimum level that will optimize profitability over the limited remaining life of the product.<\/li>\r\n \t<li style=\"text-align: justify\">Abandon the product.<\/li>\r\n<\/ul>\r\n<\/div>\r\n&nbsp;\r\n\r\n<strong>The following table summarizes the marketing strategies followed at each stage of the Product Life Cycle.<\/strong>\r\n\r\n<img class=\"aligncenter size-full wp-image-213\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-79.png\" alt=\"\" width=\"530\" height=\"581\" \/>\r\n<div>\r\n<p style=\"text-align: justify\"><strong>REVIVAL OF PRODUCT LIFE CYCLE:<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">In a nutshell, innovation is the answer to the revival of Product Life Cycle. Ultimately, however, if necessary, a product is eliminated. It is, sometimes, difficult for the executives associated with the product for a long time to abandon it due to emotional reasons. This is a pitfall to be avoided.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Based on the type of products, the Product Life Cycle may be short or long, for example, for consumer electronics items and fashion wear, PLC is very short, and for some other products like consumer durables, it is very long.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>CHANGING MARKET:<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">It is sure that, we cannot have a constant market. Markets often do change. There are very few markets which are the same today as they were ten years ago. Consumer attitudes, competitive pressures, socio-economic changes all make it vital for each company to keep it survive. This means that it is certain that once a product is born, it grows, matures and eventually dies. To explain this, a simple product life cycle technique has been invented.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>WHY NEW PRODUCTS FAIL?<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">When a product does not bring inadequate profits, the failure may be traced to the management\u2019s neglect or mishandling of the product innovation or the faulty management of the product life cycle. The National Industrial Conference Board, after surveying 87 companies, attributed eight factors for a failure of product.<\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\">Inadequate market analysis<strong>:<\/strong><\/li>\r\n \t<li style=\"text-align: justify\">Product defects<\/li>\r\n \t<li style=\"text-align: justify\">Higher costs than anticipated<\/li>\r\n \t<li style=\"text-align: justify\">Poor timing<\/li>\r\n \t<li style=\"text-align: justify\">Competition<\/li>\r\n \t<li style=\"text-align: justify\">Insufficient marketing efforts<\/li>\r\n \t<li style=\"text-align: justify\">Inadequate sales force<\/li>\r\n \t<li style=\"text-align: justify\">Weakness in distribution<\/li>\r\n<\/ul>\r\n<\/div>\r\n<strong>This study brought out two important considerations.<\/strong>\r\n<ul>\r\n \t<li style=\"text-align: justify\">The main factors that cause failure were within control.<\/li>\r\n \t<li style=\"text-align: justify\">About two-thirds of the causes of failure were marketing shortcomings, while all other functions of business combined like production, finance, purchasing etc., accounted for only one-third.<\/li>\r\n \t<li style=\"text-align: justify\">Cundiff and still classify the causes of failures of product\u00a0 into six categories. They are:<\/li>\r\n<\/ul>\r\n<strong>Product problems<\/strong>:\r\n\r\n<img class=\"aligncenter size-full wp-image-214\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-80.png\" alt=\"\" width=\"410\" height=\"231\" \/>\r\n<div>\r\n\r\n1.\r\n<ul>\r\n \t<li style=\"text-align: justify\">Neglect of market needs or ignorance of market preferences;<\/li>\r\n \t<li style=\"text-align: justify\">Defects in product function;<\/li>\r\n \t<li style=\"text-align: justify\">Poor technical design or external appearance<\/li>\r\n \t<li style=\"text-align: justify\">Poor package or inappropriate sizes<\/li>\r\n \t<li style=\"text-align: justify\">Too high variation in quality.<\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify\">2.\u00a0\u00a0<strong>Distribution and channel problems<\/strong>:<\/p>\r\n\r\n<ul style=\"text-align: justify\">\r\n \t<li>Inappropriate channels of outlets,<\/li>\r\n \t<li>Necessary middlemen, cooperation not obtained;<\/li>\r\n \t<li>Poor system of distribution<\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify\"><strong>3.\u00a0<\/strong><strong>Pricing Problems:<\/strong><\/p>\r\n<p style=\"text-align: justify\"><strong>\u00a0<\/strong><\/p>\r\n<p style=\"text-align: justify\">Bad forecast of price, that buyers would\u00a0 pay,<\/p>\r\n<p style=\"text-align: justify\">Inadequate margin for the middlemen<\/p>\r\n<p style=\"text-align: justify\">Price instability<\/p>\r\n\r\n<\/div>\r\n<ol start=\"4\">\r\n \t<li style=\"text-align: justify\"><strong>Promotional problems:<\/strong><\/li>\r\n<\/ol>\r\n<ul>\r\n \t<li style=\"text-align: justify\">Inadequate and ineffective promotion.<\/li>\r\n \t<li style=\"text-align: justify\">use of wrong appeals<\/li>\r\n \t<li style=\"text-align: justify\">inadequate training , motivation or supervision<\/li>\r\n<\/ul>\r\n<ol start=\"5\">\r\n \t<li style=\"text-align: justify\"><strong>Timing problems<\/strong>:<\/li>\r\n<\/ol>\r\n<ul style=\"text-align: justify\">\r\n \t<li>Product introduced too early or too late<\/li>\r\n<\/ul>\r\n<ol style=\"text-align: justify\" start=\"6\">\r\n \t<li><strong>Competitive problems<\/strong>:<\/li>\r\n<\/ol>\r\n<ul style=\"text-align: justify\">\r\n \t<li>Competitors took the critical moves first with respect to products, distribution, promotion and price;<\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify\"><strong>FAILURES OF NEW PRODUCT MAY BE AVOIDED BY:<\/strong><\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify\">Improved screening and evaluation of ideas and products<\/li>\r\n \t<li style=\"text-align: justify\">Organizational changes<\/li>\r\n \t<li style=\"text-align: justify\">Changes in procedural and development efforts<\/li>\r\n \t<li style=\"text-align: justify\">Improvements in production and quality control<\/li>\r\n \t<li style=\"text-align: justify\">Improving caliber of personnel working o new-product programmes<\/li>\r\n<\/ul>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td><strong>you can view video on Product Life Cycle <\/strong><\/td>\r\n<td><a href=\"https:\/\/youtu.be\/1JbCJYIU3FI\" target=\"_blank\" rel=\"noopener\"><img class=\"alignnone wp-image-120\" src=\"http:\/\/epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/2018\/11\/download.png\" alt=\"\" width=\"36\" height=\"36\" \/><\/a><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<strong>Reference Books:<\/strong>\r\n<ol>\r\n \t<li style=\"text-align: justify\">Marketing Principles and Practice- A.A.Chunnawalla- Himalaya Publishing House<\/li>\r\n \t<li style=\"text-align: justify\">Marketing Management- R.S.N.Pillai, Bagavathi- S.Chand &amp; Company Pvt.Ltd.<\/li>\r\n \t<li style=\"text-align: justify\">Marketing Management concepts and cases- S.A.Sherlekar, R.Krishnamoorthy- Himalaya Publishing House<\/li>\r\n \t<li style=\"text-align: justify\">Principles of Marketing- S.A.Sherlekar, K.Nirmala Prasad, S.J. Salvadore Victor-Himalaya Publishing House<\/li>\r\n \t<li style=\"text-align: justify\">Marketing \u2013 Dr.L.Natarajan- Margham Publications<\/li>\r\n<\/ol>","rendered":"<div><span style=\"float: right\"><a href=\"https:\/\/youtu.be\/1JbCJYIU3FI\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"http:\/\/epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/2018\/11\/download.png\" alt=\"epgp books\" width=\"75px\" height=\"75px;\" \/><\/a><br \/>\n<\/span><\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">A product is both what a seller has to sell and what a buyer has to buy. People purchase products, because they are capable of realizing some benefits to the purchaser. A product is one which satisfies the needs of the customers.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">According to Philip Kotler, \u201cA product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. It includes objects, services, persons, places, organization and ideas\u201d.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-198\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-65.png\" alt=\"\" width=\"823\" height=\"465\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-65.png 823w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-65-300x170.png 300w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-65-768x434.png 768w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-65-65x37.png 65w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-65-225x127.png 225w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-65-350x198.png 350w\" sizes=\"auto, (max-width: 823px) 100vw, 823px\" \/><\/p>\n<div>\n<p><strong>PRODUCT LIFE CYCLE<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Product life cycle is very similar to the human life cycle. Human beings have to pass various stages from his\/her birth till death. Similarly, the product from its birth passes through various stages, until it is finally out from the market. The length of the life-cycle, its duration of each phase and the shape of the curve may differ from product to product, but the whole life cycle passes through certain definite stages. These stages are together referred to as \u2018product life cycle\u2019. The period during which a product lives in the market is termed as \u2018product life-cycle\u2019.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>STAGES IN THE PRODUCT LIFE CYCLE<\/strong><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>Introduction stage<\/li>\n<li>Growth stage<\/li>\n<li>Maturity stage<\/li>\n<li>Saturation stage<\/li>\n<li>Decline stage<\/li>\n<\/ul>\n<\/div>\n<p style=\"text-align: justify\">The following chart depicts the stage of Product Life Cycle clearly<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-200\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-66.png\" alt=\"\" width=\"807\" height=\"473\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-66.png 807w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-66-300x176.png 300w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-66-768x450.png 768w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-66-65x38.png 65w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-66-225x132.png 225w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-66-350x205.png 350w\" sizes=\"auto, (max-width: 807px) 100vw, 807px\" \/><\/p>\n<div>\n<p><strong>Introduction stage<\/strong>:<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">This is the most important and beginning stage of the product\u2019<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Most of the product\u00a0 fails in the introduction stage. Why?<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">In this stage, the product is in infant stage. Profit may not be there as there is low sales volume. The product may require heavy advertising and sales promotion. Products are brought cautiously on a trial basis. Weakness can be identified and can be rectified in this stage to avoid heavy loss for the companies.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-201\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-67.png\" alt=\"\" width=\"809\" height=\"459\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-67.png 809w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-67-300x170.png 300w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-67-768x436.png 768w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-67-65x37.png 65w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-67-225x128.png 225w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-67-350x199.png 350w\" sizes=\"auto, (max-width: 809px) 100vw, 809px\" \/><\/p>\n<p><strong>Characteristics of Introduction stage:<\/strong><\/p>\n<ul>\n<li style=\"text-align: justify\">New market segments are opened.<\/li>\n<li style=\"text-align: justify\">Sales increase rapidly.<\/li>\n<li style=\"text-align: justify\">Company earns higher profits.<\/li>\n<li style=\"text-align: justify\">Unit manufacturing costs falls faster.<\/li>\n<li style=\"text-align: justify\">Competition enters the market.<\/li>\n<li style=\"text-align: justify\">Competitors engage in frequent price cuts.<\/li>\n<li style=\"text-align: justify\">Competitors increase promotional activities.<\/li>\n<\/ul>\n<p><strong>Growth stage<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-202\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-68.png\" alt=\"\" width=\"411\" height=\"237\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-68.png 411w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-68-300x173.png 300w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-68-65x37.png 65w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-68-225x130.png 225w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-68-350x202.png 350w\" sizes=\"auto, (max-width: 411px) 100vw, 411px\" \/><\/p>\n<div>\n<p><strong>What is growth stage?<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">\u2018This is called as market acceptance stage\u2019.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">As the name growth indicates, both sales and profit rise up in this stage. The rise is very rapid. The firm gives top priority to sales volume and quality maintenance may have second preference. Effective distribution and advertising are considered as key factors. Word of mouth advertising leads to more new users. Repeat orders are secured.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Maturity Stage<\/strong>:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-203\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-69.png\" alt=\"\" width=\"417\" height=\"241\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-69.png 417w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-69-300x173.png 300w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-69-65x38.png 65w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-69-225x130.png 225w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-69-350x202.png 350w\" sizes=\"auto, (max-width: 417px) 100vw, 417px\" \/><\/p>\n<p>\u2018This is the longest stage in the life of a product\u2019.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Sales continue to increase but at a decreasing rate. Keen competition brings pressure on prices. Increasing marketing expenditure and falling price will reduce profit. Competitors go for mark-down price by increasing advertising deals. Additional expenses are involved in product modification and also improvement in marketing mix, product mix or style changes, to attract the customers and retain the market. Overall marketing effectiveness becomes the key factor in this stage.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-204\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-70.png\" alt=\"\" width=\"414\" height=\"231\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-70.png 414w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-70-300x167.png 300w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-70-65x36.png 65w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-70-225x126.png 225w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-70-350x195.png 350w\" sizes=\"auto, (max-width: 414px) 100vw, 414px\" \/><\/p>\n<div>\n<p style=\"text-align: justify\">The saturation stage occurs in the market when all the potential buyers are using the product and we have only replacement sales. Prices may fall rapidly and profit margins\u00a0<span style=\"text-align: initial;font-size: 1em\">may become small unless the firm makes substantial improvements and realizes cost economies.<\/span><\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>Decline Stage:<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-205\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-71.png\" alt=\"\" width=\"411\" height=\"238\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-71.png 411w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-71-300x174.png 300w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-71-65x38.png 65w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-71-225x130.png 225w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-71-350x203.png 350w\" sizes=\"auto, (max-width: 411px) 100vw, 411px\" \/><\/p>\n<p style=\"text-align: justify\">Once the peak or saturation point is reached, product inevitably enters the decline stage and becomes obsolete. Sales drop severely, competition dwindles, and even the product cannot even stand in the market. A marketer is expected to keep new products ready to fill up the gap created by the demise of existing products.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>SYNOPSIS OF THE PRODUCT LIFE CYCLE CONCEPT:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">The following table gives a quick recap of what have already learnt about the PLC:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-206\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-72.png\" alt=\"\" width=\"530\" height=\"264\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-72.png 530w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-72-300x149.png 300w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-72-65x32.png 65w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-72-225x112.png 225w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-72-350x174.png 350w\" sizes=\"auto, (max-width: 530px) 100vw, 530px\" \/><\/p>\n<div>\n<p style=\"text-align: justify\"><strong>BENEFITS OF THE PRODUCT LIFE CYCLE CONCEPTS:<\/strong><\/p>\n<ul>\n<li style=\"text-align: justify\">When the firm is able to identify the product life pattern, the management can be cautious in taking advance steps, before the decline stage, by adopting product modification, pricing strategies, style, quality changes etc.,<\/li>\n<li style=\"text-align: justify\">The firm can prepare an effective product plan, by knowing the PLC of a product.<\/li>\n<li style=\"text-align: justify\">The PLC will greatly help the management in drawing future plans of the firm<\/li>\n<li style=\"text-align: justify\">PLC serves as a planning tool to the marketers. It allows a marketer a choice of various strategies at different stages.<\/li>\n<li style=\"text-align: justify\">PLC is a control tool which allows a comparison of the launched product with previously launched products.<\/li>\n<li style=\"text-align: justify\">PLC is a forecasting tool which gives an idea of the likely sales growth of a product and its profitability. However, as there are variations in the duration of each stage, its usefulness as a forecasting tool is limited.<\/li>\n<\/ul>\n<p><strong>A management may be able to adopt measures to control the PLC. They are:<\/strong><\/p>\n<ul>\n<li style=\"text-align: justify\">Creation of new uses by expansion of the market.<\/li>\n<li style=\"text-align: justify\">Extension of the life at maturity and saturation stage by adopting new packing, repricing or product modification.<\/li>\n<li style=\"text-align: justify\">Creation of more varieties of the product among current users. For instances, Amul Milk Powder, through advertisement emphasizes many uses, in preparing milk, tea, curd. \u201cIt is like having a dairy in your home\u201d<\/li>\n<li style=\"text-align: justify\">Adoption of the latest technological changes, fashion changes, market acceptance, etc.,<\/li>\n<\/ul>\n<\/div>\n<p>&nbsp;<\/p>\n<p><strong>MANAGEMENT OF PRODUCT LIFE CYCLE:<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-207\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-73.png\" alt=\"\" width=\"410\" height=\"234\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-73.png 410w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-73-300x171.png 300w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-73-65x37.png 65w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-73-225x128.png 225w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-73-350x200.png 350w\" sizes=\"auto, (max-width: 410px) 100vw, 410px\" \/><\/p>\n<div>\n<p style=\"text-align: justify\">By timely and effective implementation of specific marketing actions such as through new packaging, repricing or product changes, the life cycle of the product may be extended or stretched out. The most important key to product life cycle management is to forecast the profile of the proposed product\u2019s life cycle even before it is introduced. Then at each stage, the management should anticipate the marketing requirements of the following stage.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Theodore Levitt cities examples of how Du Pont\u2019s nylon, General Food\u2019s Jello, and 3 M\u2019s Scotch Tape, were the beneficiaries of marketing life stretching strategies. For example, \u2018the first nylon introduced had mainly military uses, viz., for parachutes, thread and rope. Nylon then entered the circular knit market and dominated the women\u2019s hosiery business. After some years, the steady rising growth and profit curves began to flatten out and the threat of obsolescence was imminent. Therefore, Du Pont developed measures for revitalizing the sales and profits.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">These measures involved strategies attempting to expand sales by four different methods.<\/p>\n<ul>\n<li>Promoting more frequent usage of the product among current users.<\/li>\n<li>Developing more varied usage of the product among current users.<\/li>\n<li>Creating new uses for the basic material.<\/li>\n<\/ul>\n<p style=\"text-align: justify\">\u00a7\u00a0\u00a0 In order to develop more varied usage of the product among current users Du Pont began to promote the fashion smartness of tinted hose and later patterned and highly textured hosiery, thereby making hosiery a simple ingredient of fashion. The new uses for basic material were from varied types of hosiery to new uses as rugs, tyres,\u00a0<span style=\"text-align: initial;font-size: 1em\">bearing, etc, Approximate action resulted in consumption actually exceeding 500 million pounds, which would have been only 50 million pounds has these developments not taken.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">MANAGEMENT OF INTRODUCTION STAGE:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Now we are going to discuss how can the firms manage introduction stage?<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">What are the various strategies implemented in this stage?<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">While launching a new product, marketing mix for each variable can be set at a high or a low level. If we examine price and promotion variable of the marketing mix. There are four major marketing strategies available.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">The strategies implemented in the introduction stage are:<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-208\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-74.png\" alt=\"\" width=\"399\" height=\"372\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-74.png 399w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-74-300x280.png 300w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-74-65x61.png 65w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-74-225x210.png 225w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-74-350x326.png 350w\" sizes=\"auto, (max-width: 399px) 100vw, 399px\" \/><\/p>\n<div>\n<p style=\"text-align: justify\"><strong>Rapid Skimming Strategy:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">The product is new to the market and launched at a high price. Heavy promotion is needed since the product is new. This strategy will be successful if there are people who are unaware of the product, become aware of it and buy it at a price demanded. There is a risk of competition and so the firm has to build up brand preference.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>Slow Skimming Strategy:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">The product is priced high. Since the product is known to the market, the money spent on promotion is low. The lower promotional cost keeps the marketing expenses in check. It is perceived that potential competition will not around right now.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>Rapid Penetrating Strategy:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">The product is offered at the lowest possible price. At the same time, since the product is new to the market, promotion is kept at a high level. The objective is to bring about a very fast market penetration. This strategy is suitable for large markets which are highly competitive. The market is price sensitive.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>Slow Penetration Strategy:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">The price and the promotion are kept low at the time of launch. Lower price leads to fast acceptance of the product. The lower promotional costs keep up healthy profits. In a large market with high awareness level and price sensitiveness, this strategy makes sense. There is some potential of competition.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>MANAGEMENT OF GROWTH STAGE:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">In this stage, there is a rapid increase in sales. Potential buyers start buying the product. Buyers compare this product with the rival products. The number of outlets is increased. Companies maintain their promotional expenditures at the same or at a slightly raised level to meet competition.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>This stage is more important, the manager should manage by implementing the following strategies<\/strong>.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-209\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-75.png\" alt=\"\" width=\"412\" height=\"236\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-75.png 412w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-75-300x172.png 300w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-75-65x37.png 65w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-75-225x129.png 225w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-75-350x200.png 350w\" sizes=\"auto, (max-width: 412px) 100vw, 412px\" \/><\/p>\n<div>\n<ul>\n<li style=\"text-align: justify\">Product quality is improved.<\/li>\n<li style=\"text-align: justify\">New features are incorporated. The style is improves.<\/li>\n<li style=\"text-align: justify\">New models are introduced. Flanker products are introduced.<\/li>\n<li style=\"text-align: justify\">New market segments are tapped.<\/li>\n<li style=\"text-align: justify\">Enter into new distribution channels.<\/li>\n<li style=\"text-align: justify\">Brand building promotion is resorted to.<\/li>\n<li style=\"text-align: justify\">Prices may be lowered to lure the next layer of price-conscious buyers.<\/li>\n<\/ul>\n<p style=\"text-align: justify\">The firm, by strengthening its promotion and products can secure dominant position in the market.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>MANAGEMENT OF MATURITY STAGE:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">In this stage, the manufactures gets maximum profit through maximum sales. Price competition is severe. The sales and profit gets down, due the arrival of the substitute products. Hence, the firm should implement effective steps to be in the market.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Strategies implemented in maturity stage<\/strong><span style=\"text-align: initial;font-size: 1em\">:<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-210\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-76.png\" alt=\"\" width=\"411\" height=\"236\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-76.png 411w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-76-300x172.png 300w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-76-65x37.png 65w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-76-225x129.png 225w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-76-350x201.png 350w\" sizes=\"auto, (max-width: 411px) 100vw, 411px\" \/><\/p>\n<div>\n<ul>\n<li style=\"text-align: justify\">Improve the quality of the product<\/li>\n<li style=\"text-align: justify\">Give proper attention to increase the usage among the current customers.<\/li>\n<li style=\"text-align: justify\">Try to convert non-users into users of the product that is creating new users.<\/li>\n<li style=\"text-align: justify\">Give more emphasis to advertisement and promotional programmes.<\/li>\n<li style=\"text-align: justify\">Try to discover new uses for the product.<\/li>\n<\/ul>\n<p style=\"text-align: justify\">In the maturity stage, the companies can also take the following strategies to stimulate sales.<\/p>\n<ul>\n<li style=\"text-align: justify\">Market Modification<\/li>\n<li style=\"text-align: justify\">Product Modification<\/li>\n<li style=\"text-align: justify\">Marketing Mix Modification<\/li>\n<\/ul>\n<p><strong>Market Modification:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">The company may try to expand the market in order to increase sales by adopting the following strategies.<\/p>\n<ul>\n<li style=\"text-align: justify\">Enter new market segments<\/li>\n<li style=\"text-align: justify\">Attract new users<\/li>\n<li style=\"text-align: justify\">Increase usage among the present customers.<\/li>\n<li style=\"text-align: justify\">Persuade customers to use the product.<\/li>\n<li style=\"text-align: justify\">Create new uses of the product.<\/li>\n<\/ul>\n<\/div>\n<p style=\"text-align: justify\">The decline in the sales can be arrested by improving in following aspects:<\/p>\n<ul>\n<li style=\"text-align: justify\">Quality improvements like durability, reliability, speed.<\/li>\n<li style=\"text-align: justify\">Feature improvements like size, materials, and weights.<\/li>\n<li style=\"text-align: justify\">Style improvements like new models, new styles.<\/li>\n<\/ul>\n<p style=\"text-align: justify\"><strong>Market Mix Modification:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">The companies can try to stimulate sales by modifying marketing mix elements.<\/p>\n<ul>\n<li>Price<\/li>\n<li>Distribution<\/li>\n<li>Advertisement<\/li>\n<li>Personal selling<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>MANAGEMENT OF SATURATION STAGE:<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-211\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-77.png\" alt=\"\" width=\"412\" height=\"235\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-77.png 412w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-77-300x171.png 300w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-77-65x37.png 65w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-77-225x128.png 225w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-77-350x200.png 350w\" sizes=\"auto, (max-width: 412px) 100vw, 412px\" \/><\/p>\n<div>\n<p style=\"text-align: justify\">In this stage, the manufacturer\u2019s finds difficult to expand the sales volume beyond a particular point, that is, sales are at the peak and further increase is not possible. Since the sales cannot be increased, <strong>the marketing manager should implement the following<\/strong> <strong>strategies:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"text-align: justify\">Introduce new models<\/li>\n<li style=\"text-align: justify\">Pursue new uses for the product<\/li>\n<li style=\"text-align: justify\">Introduce new package and repricing.<\/li>\n<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">To increase middlemen\u2019s margin.<\/span><\/li>\n<li style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">If the price is high, offer the product on instalment basis<\/span><\/li>\n<\/ul>\n<\/div>\n<p><strong>MANAGEMENT OF DECLINE STAGE:<\/strong><\/p>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-212\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-78.png\" alt=\"\" width=\"409\" height=\"228\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-78.png 409w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-78-300x167.png 300w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-78-65x36.png 65w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-78-225x125.png 225w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-78-350x195.png 350w\" sizes=\"auto, (max-width: 409px) 100vw, 409px\" \/><\/p>\n<div>\n<p style=\"text-align: justify\">This is the last and crucial sage. Sales may decline for a number of reasons like technical advances, arrival of new products at low cost, changes in fashion, customer preference. Sales and profits continue to fall at this stage. If the substitutes are more attractive and in latest fashion, buyers may turn their eyes towards them.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">In this stage, cost control is increasingly important to generate profits by the following measures as suggested by Stanton.<\/p>\n<ul>\n<li style=\"text-align: justify\">To improve the product or revitalize it in some way.<\/li>\n<li style=\"text-align: justify\">To review the marketing and production programmes to be sure that they are quite efficient.<\/li>\n<li style=\"text-align: justify\">To streamline the product assortment by pruning out unprofitable size, styles, colors and models.<\/li>\n<li style=\"text-align: justify\">To cut all costs to bare minimum level that will optimize profitability over the limited remaining life of the product.<\/li>\n<li style=\"text-align: justify\">Abandon the product.<\/li>\n<\/ul>\n<\/div>\n<p>&nbsp;<\/p>\n<p><strong>The following table summarizes the marketing strategies followed at each stage of the Product Life Cycle.<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-213\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-79.png\" alt=\"\" width=\"530\" height=\"581\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-79.png 530w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-79-274x300.png 274w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-79-65x71.png 65w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-79-225x247.png 225w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-79-350x384.png 350w\" sizes=\"auto, (max-width: 530px) 100vw, 530px\" \/><\/p>\n<div>\n<p style=\"text-align: justify\"><strong>REVIVAL OF PRODUCT LIFE CYCLE:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">In a nutshell, innovation is the answer to the revival of Product Life Cycle. Ultimately, however, if necessary, a product is eliminated. It is, sometimes, difficult for the executives associated with the product for a long time to abandon it due to emotional reasons. This is a pitfall to be avoided.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Based on the type of products, the Product Life Cycle may be short or long, for example, for consumer electronics items and fashion wear, PLC is very short, and for some other products like consumer durables, it is very long.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>CHANGING MARKET:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">It is sure that, we cannot have a constant market. Markets often do change. There are very few markets which are the same today as they were ten years ago. Consumer attitudes, competitive pressures, socio-economic changes all make it vital for each company to keep it survive. This means that it is certain that once a product is born, it grows, matures and eventually dies. To explain this, a simple product life cycle technique has been invented.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>WHY NEW PRODUCTS FAIL?<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">When a product does not bring inadequate profits, the failure may be traced to the management\u2019s neglect or mishandling of the product innovation or the faulty management of the product life cycle. The National Industrial Conference Board, after surveying 87 companies, attributed eight factors for a failure of product.<\/p>\n<ul>\n<li style=\"text-align: justify\">Inadequate market analysis<strong>:<\/strong><\/li>\n<li style=\"text-align: justify\">Product defects<\/li>\n<li style=\"text-align: justify\">Higher costs than anticipated<\/li>\n<li style=\"text-align: justify\">Poor timing<\/li>\n<li style=\"text-align: justify\">Competition<\/li>\n<li style=\"text-align: justify\">Insufficient marketing efforts<\/li>\n<li style=\"text-align: justify\">Inadequate sales force<\/li>\n<li style=\"text-align: justify\">Weakness in distribution<\/li>\n<\/ul>\n<\/div>\n<p><strong>This study brought out two important considerations.<\/strong><\/p>\n<ul>\n<li style=\"text-align: justify\">The main factors that cause failure were within control.<\/li>\n<li style=\"text-align: justify\">About two-thirds of the causes of failure were marketing shortcomings, while all other functions of business combined like production, finance, purchasing etc., accounted for only one-third.<\/li>\n<li style=\"text-align: justify\">Cundiff and still classify the causes of failures of product\u00a0 into six categories. They are:<\/li>\n<\/ul>\n<p><strong>Product problems<\/strong>:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-214\" src=\"http:\/\/hsp15.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-80.png\" alt=\"\" width=\"410\" height=\"231\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-80.png 410w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-80-300x169.png 300w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-80-65x37.png 65w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-80-225x127.png 225w, https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-content\/uploads\/sites\/288\/2019\/07\/Untitled-80-350x197.png 350w\" sizes=\"auto, (max-width: 410px) 100vw, 410px\" \/><\/p>\n<div>\n<p>1.<\/p>\n<ul>\n<li style=\"text-align: justify\">Neglect of market needs or ignorance of market preferences;<\/li>\n<li style=\"text-align: justify\">Defects in product function;<\/li>\n<li style=\"text-align: justify\">Poor technical design or external appearance<\/li>\n<li style=\"text-align: justify\">Poor package or inappropriate sizes<\/li>\n<li style=\"text-align: justify\">Too high variation in quality.<\/li>\n<\/ul>\n<p style=\"text-align: justify\">2.\u00a0\u00a0<strong>Distribution and channel problems<\/strong>:<\/p>\n<ul style=\"text-align: justify\">\n<li>Inappropriate channels of outlets,<\/li>\n<li>Necessary middlemen, cooperation not obtained;<\/li>\n<li>Poor system of distribution<\/li>\n<\/ul>\n<p style=\"text-align: justify\"><strong>3.\u00a0<\/strong><strong>Pricing Problems:<\/strong><\/p>\n<p style=\"text-align: justify\"><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Bad forecast of price, that buyers would\u00a0 pay,<\/p>\n<p style=\"text-align: justify\">Inadequate margin for the middlemen<\/p>\n<p style=\"text-align: justify\">Price instability<\/p>\n<\/div>\n<ol start=\"4\">\n<li style=\"text-align: justify\"><strong>Promotional problems:<\/strong><\/li>\n<\/ol>\n<ul>\n<li style=\"text-align: justify\">Inadequate and ineffective promotion.<\/li>\n<li style=\"text-align: justify\">use of wrong appeals<\/li>\n<li style=\"text-align: justify\">inadequate training , motivation or supervision<\/li>\n<\/ul>\n<ol start=\"5\">\n<li style=\"text-align: justify\"><strong>Timing problems<\/strong>:<\/li>\n<\/ol>\n<ul style=\"text-align: justify\">\n<li>Product introduced too early or too late<\/li>\n<\/ul>\n<ol style=\"text-align: justify\" start=\"6\">\n<li><strong>Competitive problems<\/strong>:<\/li>\n<\/ol>\n<ul style=\"text-align: justify\">\n<li>Competitors took the critical moves first with respect to products, distribution, promotion and price;<\/li>\n<\/ul>\n<p style=\"text-align: justify\"><strong>FAILURES OF NEW PRODUCT MAY BE AVOIDED BY:<\/strong><\/p>\n<ul>\n<li style=\"text-align: justify\">Improved screening and evaluation of ideas and products<\/li>\n<li style=\"text-align: justify\">Organizational changes<\/li>\n<li style=\"text-align: justify\">Changes in procedural and development efforts<\/li>\n<li style=\"text-align: justify\">Improvements in production and quality control<\/li>\n<li style=\"text-align: justify\">Improving caliber of personnel working o new-product programmes<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<table>\n<tbody>\n<tr>\n<td><strong>you can view video on Product Life Cycle <\/strong><\/td>\n<td><a href=\"https:\/\/youtu.be\/1JbCJYIU3FI\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-120\" src=\"http:\/\/epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/2018\/11\/download.png\" alt=\"\" width=\"36\" height=\"36\" \/><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Reference Books:<\/strong><\/p>\n<ol>\n<li style=\"text-align: justify\">Marketing Principles and Practice- A.A.Chunnawalla- Himalaya Publishing House<\/li>\n<li style=\"text-align: justify\">Marketing Management- R.S.N.Pillai, Bagavathi- S.Chand &amp; Company Pvt.Ltd.<\/li>\n<li style=\"text-align: justify\">Marketing Management concepts and cases- S.A.Sherlekar, R.Krishnamoorthy- Himalaya Publishing House<\/li>\n<li style=\"text-align: justify\">Principles of Marketing- S.A.Sherlekar, K.Nirmala Prasad, S.J. Salvadore Victor-Himalaya Publishing House<\/li>\n<li style=\"text-align: justify\">Marketing \u2013 Dr.L.Natarajan- Margham Publications<\/li>\n<\/ol>\n","protected":false},"author":8,"menu_order":26,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":["dr-l-shanthi"],"pb_section_license":""},"chapter-type":[],"contributor":[65],"license":[],"class_list":["post-196","chapter","type-chapter","status-publish","hentry","contributor-dr-l-shanthi"],"part":3,"_links":{"self":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-json\/pressbooks\/v2\/chapters\/196","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-json\/wp\/v2\/users\/8"}],"version-history":[{"count":4,"href":"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-json\/pressbooks\/v2\/chapters\/196\/revisions"}],"predecessor-version":[{"id":216,"href":"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-json\/pressbooks\/v2\/chapters\/196\/revisions\/216"}],"part":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-json\/pressbooks\/v2\/parts\/3"}],"metadata":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-json\/pressbooks\/v2\/chapters\/196\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-json\/wp\/v2\/media?parent=196"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-json\/pressbooks\/v2\/chapter-type?post=196"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-json\/wp\/v2\/contributor?post=196"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/hsp15\/wp-json\/wp\/v2\/license?post=196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}