Product Life Cycle

 There are four stages to the Life Cycle

Introduction

Growth
Maturity

Decline
Graph of a Product Life Cycle
Product Life Cycle
What is a Sales Curve
Is the up and down sale of units throughout a
products Life Cycle
Product Life
 Introduction Stage
Cycle
Sales are generally low and somewhat slow to take off

Production costs are high because of significant

scale economies

Marketing costs for costumer awareness,

interest and trial are high

Profits are low, because to low sales

Competitors tend to be few in number

Product Life Cycle
 Growth
 Sales increase rapidly
 Positive word of mouth
 Increasing number of competitors
 Promotion effect
Product Life Cycle
 Growth (continued)
 Costs are declining because of longer production runs
due to increased sales
 Profits are increasing significantly
 Customers are the early adopters (the word of mouth
people)
 Competition continues to grow throughout this stage
Product Life Cycle
 Maturity
 Sales continues to grow in the early stages of maturity
 Costs continue to rise
 The only remaining customers to enter the market are
the Late majority and the laggards (Those most hesitant to adopt
new products)

 Competition is the most intense

Product
 Decline Life Cycle
 Sales continue to deteriorate through decline
 Profits continue to erode during this stage
 Customers are primary laggards
 Generally are a significant number of competitors still in
the industry at the beginning of the decline stage
 Product Life Cycle
Examples of products in various stages of the
product life cycle

Introduction Growth Maturity Decline

E-conferencing email faxes Handwritten

letters
Third generation Portable CD Personal Typewriter
mobile phones players Computers

Iris-based Smart cards Credit cards Check books

personal identity
cards
Marketing Warfare strategies
WARFARE Ries and Jack Trout argue that
marketing is war and that the marketing
concept customer-oriented philosophy is
inadequate. Rather, firm would do better by
becoming competitor-oriented. The principle
of force: saying that it is easier to get top
than to stay there. They disagree, arguing
that once at the top, a company can use the
power of its leadership position to stay
there. The superiority of defense: WARFARE
- Ries & Trout
DEFENSIVE WARFARE MARKETING WARFARE - Ries &
Trout Adopted when your organization is clear market
leader Examples: PRINCIPLES
1) Only the market leader should consider playing
defensive
2) The best defensive strategy is to attack yourself
3) Strong competitive moves should always be block
It should be used when organization is No. 2 or No. 3
and has resources to sustain a challenge to leader
MARKETING WARFARE - Ries & Trout Examples:
PRINCIPLES The main consideration is the strength of
the leader) Find a weakness in leader’s strength and
attack at that point 3) Launch the attack on as narrow
a front as possible

FLANKING WARFARE Adopted when Your organization

is no. 4-6 in market You have resources to pursue
flanking move Resources to sew-up that market
segment MARKETING WARFARE - Ries & Trout
Examples: PRINCIPLES A good flanking move must be
made into uncontested area Tactical surprise ought to
be an important element of the plan The pursuit is as
critical as attack itself
•GUIRELLA WARFAREAppropriate for other 96 organization in 100
organizations market.MARKETING WARFARE - Ries & Trout
Example: PRINCIPLESFind a segment of a market small enough to
defend 2) No matter how successful you become, never act like the
leader 3) Be prepared to bug out at a moment’s notice.
•. CASE STUDIES:The cola war The beer war The burger war The
computer warMARKETING WARFARE - Ries & Trout