Product Life Cycle – A Marketing Tool

A product is anything that can be offered for use and consumption in exchange for some form
of value, more often than not, money. (Baines, Fill, Page, 2011). Sales figures and profit are
important factors in determining a product’s success and the marketing and strategic
management needed to prolong such success. The Product Life Cycle (PLC) is a concept
used in marketing, which formulates strategy appropriate to the success of each stage of the
product’s life. There are four stages to the PLC which are relative to marketing: Introduction,
Growth, Maturity and Decline, each of which are believed to be sequential and pre-
determined, similar to the biological path of any life form. (Doyle, 2011). Throughout this
essay, I will discuss further the implementations of this framework as a marketing tool,
analysing its success but also the limitations researchers have discovered over time.

The PLC stresses to companies that products need to be terminated and other products
developed to replace them. Through this framework, a stylised set of marketing objectives
and strategies are enforced to prolong the life of a product and review of marketing strategies
is necessary throughout each stage as changes in the competitive environment develop.
(Jobbler and Fahy, 2009). The PLC concept and shape of the curve can vary depending on
the class, form and brand of a product and can also be applied to different fads and fashions
relevant to a particular product. (West, Ford and Ibrahim, 2010). This cycle is a
generalization rather than being completely exact and there are limitations and products to
which this concept can’t be applied, which will be discussed further on in this essay. Within
the Introduction stage of the cycle, the marketing objective is to create product awareness
whilst trialling the product on consumers. This is achieved through offering a basic product,
building product awareness, the use of selective distribution, using cost-plus pricing and
heavy sales promotions. Moving through the Growth stage, maximising market share is the
clear marketing intention, offering product extensions and differentiation. The product at this
stage should be building intense distribution and awareness in the mass market, with the need
for less promotions in sales. The Mature stage should be the most profitable part of the
product’s life, therefore, the marketing plan is to maximise profit whilst defending market
share. This is achievable through brand and model diversification, stress on brand differences
and benefits, encouragement of brand switching and brand loyalty. (Armstrong, Kotler,
Harker and Brennan, 2009). Through the Declining stage of the cycle, the marketing
objective is to reduce expenditure and costs of the product but retain customer brand loyalty
for future product development or indeed, product re-development. Everything that can be
reduced at this stage such as advertising and promotions, is done to the point of retaining
loyal customers.

Bibliography

Baines, P., Fill, C. and Page, K. (2011) Marketing. 2nd ed. Oxford University Press.
Doyle, C. (2011) A Dictionary of Marketing. 3rd ed. Oxford University Press.

Jobbler, D and Fahy, J. (2009) Foundations of Marketing. 3rd ed. Berkshire: McGraw-Hill
Higher Education Limited.

West, D., Ford, J. and Ibrahim, E. (2010) Strategic Marketing Creating Competitive
Advantage. 2nd ed. Oxford University Press.

Armstrong, G., Kotler, P., Harker, M. and Brennan, R. (2009) Marketing An Introduction.
Essex: Pearson Education Limited.