The Plc

The Product Life Cycle

The management of HHR Inc. then indicates to you that they only recently became aware that the product life-cycle (PLC) is an important marketing concept. They then ask you to explain this concept to them with the aid of an appropriately labelled diagram. You have been further advised that they are only interested in understanding which marketing objectives they should pursue at each stage, and the accompanying marketing mix strategies for each stage of the PLC.

The product life-cycle (PLC) is a marketing concept which describes the theoretical life cycle of a product from its inception to its decline and possible exit. It outlines distinct stages that a product progresses through: product development, introduction, growth, maturity and decline and simultaneously reflects a product’s sales and profits through these stages. Due to changing economic conditions and competitive forces within the marketing situation, the management of HHR Inc. would need to refocus its management objectives and reformulate its subsequent marketing mix strategies at each stage of the product’s life.

Product Life Cycle

Sales

Profits

Sales and Profits

Time

As highlighted in the diagram above, the first stage is the product development stage.

Whether the product being developed is an improvement to an existing one, a competitor to an existing product or a totally new product, HHR’s objectives should include determining its target market, focusing on how to differentiate and or position the product and determine its financial goals.

At the introduction stage, the marketing objective should be focused on creating and awareness of the product as well as encouraging trial of the product. If it can, HHR should also seek to be the market pioneer to get the lead and greatest advantage. Management should target and seek out innovators, the small group within the market who are the first to try a new product as it offers the introductory...