Mkt 421 week 3

Apply: The Product Life Cycle (PLC)

Mkt 421

Week 3

Introduction

Develop

Develop a slide that establishes the theme and goals of the presentation.

Define and discuss

Define and discuss the PLC concept and its importance to marketing managers.

Discuss

Discuss why the PLC is important to marketing managers, and provide examples of the possible implications if the PLC is not monitored.

Describe

Describe the selected company/organization, product/service, the target market for this product, and how the product/service is presented to the selected target market.

Describe

Describe how brand equity can be used to create a positive customer image of your product.

Describe

Describe each stage of the PLC, and analyze the implications that each stage may have on pricing, product definition, competition, and profitability for your selected product/service.

Setting the Theme and Goals of the Presentation

Theme – Creating a platform and well-defined structure to cater to the needs of the consumer that are able to match the innovative technological advancements that are taking palace within the market and to provide the highest quality of product at the most competitive prices to the consumer.

Goal in Creation of Product

1 To understand the steps involved in the development of the product

2 To update the changes, as needed at any step in the PLC cycle

3 Develop strategies to meet the needed requirements of the consumer

4 To train the staff and make sure that quality of the product is maintained during each part of the phase

5 To ensure that all departments are aware of the necessary changes to the product in the life cycle

6 To continue to conduct follow up between the PLC cycle

7 Ensure to achieve the desired outcome during all stages of the Product life Cycle.

Define and discuss the PLC Concept and The Importance to Marketing Managers

PLC is the concept that takes within everything started from the point of launching a product in the market and ending when the product ins withdrawal from the market.

Each product that is produced has its own individual life cycle.

To continue to check the progress of the product, one must ensure that the item goes the variety of stages, such as, market research, competitive prices, quality check, target customers demands and continue to manufacture the product that is highly desirable by the consumer.

Therefore, PLC is well defined and needs a continued strategy to help ensure that the critical aspects are able to change in order to meet the needs of the consumer. If a product is unable to make the necessary changes, it may become a product that the consume no longer wants.

Significance of the Product Life Cycle

1 It enables the firms to take the steps well in advance, to help sustain its revenues as the decline stage gives this message in advance.

2 The company gets the idea of the product needs and positions it in the market during various stages of introduction, growth, maturity and decline stages of their other products.

3 This serves as a forecasting tool which provides enough warning and opportunities, in advance so that the management can make the needed changes.

4. It helps knowing the best advertisement strategies for the product being offered, as this helps to promote new products.

5 It encourages the management team (new product teams) to bring new products to the consumer at all stages of the life cycle.

Define/Discuss What Role Pricing Strategy On Marketing

Pricing Strategy – marketing managers look to identify optimal and competitive pricing of the given product. This is a very important aspect of the company to help ensure that they are able to make a market share and create a profitable product.

Decisions Marketing Managers Use

The Four Marketing Strategies to Success

1. Product

2. Price

3. Place

4. Promotion

Setting the proper price for the product will play a vital role in helping to determine its success.

When marketing managers consider the current market they need to ensure that the product has value, is in demand, and are the consumers willing to pay said price for the product.

Covergirl Makeup

The favorite of many women is Covergirl Makeup this brand is Made in America and has been helping women feel beautiful for over 40 years. This makeup line has been helping women to not only look their best- but also to feel their best about their appearance.

Four Stages of the Product Life Cycle

Stage – 1 – Introduction stage

At this stage, the goal is to create the awareness of product rather than to focus on making profits. Therefore, in this stage the costs are higher, and the financial return is negative. Company’s incur huge cost in advertising and promotion in launching the new product, even in this beauty line, as the consume may not be willing to try a new product.

For example- Covergirl has incurred huge costs in placing their beauty line in all stores across the country and around the world. ]

Four Stages of the Product Life Cycle (continued)

Stage – 2 – Growth Stage

At this stage of the new product, it is at its peak. Consumers are buying the product and it becomes a product that is in high demand. As profits increase, so does the competition within the industry. Now the company is more focused upon improving the quality to help ensure that the retention of the customer is confident in the product.

Covergirl Makeup offers a large range of products that last longer than other products on the market, with a wide arrange of the colors that are available. Their competition increases with the number of colors that are being sold to help accommodate a large number of consumers.

Four Stages of the Product Life Cycle (continued)

Stage – 3 – Maturity Stage

Now the product awareness is set into place and the consume has grown to like the product, the sales may dip down in comparison to when the product was first offered. There are new competitors, which means that Covergirl must remain viable in the beauty industry to stay a contender in the current market.

Covergirl makeup has introduced its product in the market and they have many consumers. Covergirl is a well known brand name, high quality product, that must now continue to offer the same product and be able to develop new items that encourage more potential consumers to try the new product lines that have been created.

Four Stages of the Product Life Cycle (continued)

Stage – 4 – Decline stage

Change in consumer preference, innovation in technologies, changes current beauty trends, poor quality of products and after sale services, could be the cause of the product ending up in at decline stage. Potential inflation in the economy may play a role in the decline of the product being sold.

Four Stages of the Product Life Cycle (continued)

Stage – 4 – Decline stage (continued)

At this stage, company has three options –

Maintain the product or reduce the cost of the product

Make changes to the Beauty care line, while offering the product to the loyal consumer and break even

Discontinue the product.

Covergirl has opted to maintain the product line and make the necessary changes to the product line to keep up with the changes of the consumer.

Why the Product Life Cycle is Important to Marketing Managers; Share Examples of Possible Implications

The product life cycle helps the marketing managers to define the marketing strategies best suited to the product market. It helps the decision making process as outcomes become easier to predict.

The product life cycle of the product will be kept current by advertisements, promotion, pricing and target market follow-up. This facilitates the managers to conduct the SWOT Analysis and define the strategies that help improve the sales of the beauty product.

If the product life cycle is not monitored carefully, it can cause fluctuations in predicted sales.

It will not be able to keep up with the change in external and internal conditions.

May struggle to meet the consumers demands, which may reduce the market share of the product.

Brand Equity/Positive Consumer Image

Creating a positive brand image can be achieved by offering a high quality product, at a great price, that consumers feel that they just need to have. Providing great customer service will allow the consume to feel that they mean something to the company.

Conclusion

In conclusion, we can see that Covergirl has been in business for many years and they have been able to bring high quality beauty products to the consumer. One of the main reasons that they have been so successful is that they are able to keep a close eye on the trends in the industry and make sure that they are offering comparable items that are being offered by their competitors.