Demand Life Cycle

1
Demand Life Cycle
Need
Sales
T2
T1
Time
2
Need
Sales
Product-Form Life Cycles
P3
P2
P1
Time
3
Product Has Life Cycle.

• Limited life
• Pass through distinct stages
• Profits rise/fall with stages
• Each stage requires different marketing
  resource strategies

--------- Also financial, manufacturing,
purchasing and human resource.
4
Product Life Cycle Stages
Introduction Slow sales, profits nil Growth
Market acceptance, profits improve Maturity
Sales Slowdown, Profits stabilize or
decline Decline Sales/ profits show downward
drift
5
Product Life Cycle
Sales
Sales Profits ()
Profit
Time
6
Other Shapes of the PLC
Sales Volume
Growth-slump-maturity
Time
Sales Volume
Cycle-recycle pattern
Time
7
Other Shapes of the PLC
Sales Volume
Scalloped Pattern
Time
8
Style, Fashion Fad Life Cycles
Sales Volume
Style
Time
Sales Volume
Fashion
Time
9
Style, Fashion Fad Life Cycles
Sales Volume
Fad
Time
10
Marketing Strategies Throughout The PLC

• Introduction
• Marketing Pioneers
• Advantages
• Risks
• Growth
• Sustaining Sales
• Improve Quality/Add features
• New models/Flanker Brands
• Lower prices to attract next layer of
  sensitive buyers

11
Marketing Strategies Throughout The PLC

• Maturity Stage
• Market Modification
• Volume brand users x usage rate
• of brand users
• Convert non-users
• Enter new market segments
• Win competitors customers
• Volume
• More frequent use
• More usage per occasion
• New more varied uses

12
Marketing Strategies Throughout The PLC

• Maturity
• Product Modification
• Quality Feature Improvement
• Marketing Mix Modification
• Prices, Distribution, Advertising
• Sales Promotion, Personal Selling, Services
• Decline
• Increase Firms Investment, Maintain
• Decrease investment selectively
• Harvest
• Divest