In marketing, a product is anything that can be

offered to a market that might satisfy a want or need. A product is a physical good, service, idea, person or place that is capable of offering tangible and intangible attributes that individuals or organisations regard as so necessary, worthwhile, or satisfying that they are prepared to exchange money, or some other unit of value in order to acquire it.

What is product life cycle?

A new product progress through a sequence of stages from Introduction to Growth, Maturity and Decline Impacting the marketing strategy and mix

A new product launched in the market.

Low level of sales. High unit cost. Usually negative c ash flow.

 Expanding

market but arrival of competitors. Fast growing sales. Rise in capacity utilization. The market grows, profit rises but attracts the entry of new competitors. Advertising to promote brand awareness. Increase in distribution outlets. Target the potential buyers. Improve the product.

Slower sales growth as rivals enter the market= intense competition +fight for market share. High level of capacity utilisation. High profit for those with high market share. Weaker competitor start to leave the market. Prices and profit fall. Product differentiation and product improvements. Competitor based price Attract new users Develop new uses.

1.

2. 3. 4. 5. 6.

Falling Sales. Market Competition. Decline in profits. More competitors leave the market. Price cutting to maintain competitiveness. Promotion to retain loyal customers.

Reasons----Technological advance. Changes in taste and behavior. Increased competition. Damaging publicity. Product side effects.

Change Price Change promotion Change product-re styling and product improvement. Change more efficient distribution. Develop new market segment. Find new uses of product. Reposition of product.

1. Elimination of product- either a natural death or termination. 2. Unless the product is profitable or has growth potential or is seen necessary to maintain sales of another product the organisation should seriously consider eliminating the product. 3. Weak product take a disproportionate amount of firms financial resources and can harm firms image.

 To forecast future behavior of sales. To be a tool of analysis to assist in the formulation of marketing strategies. To understand the changes required by customer. To understand where the product lies in market.

Criticisms of PLC concept

The

shape and duration of the cycle varies. Strategic decisions can change life cycle. It is difficult to recognise where the product is in its life cycle.

Potential product Augmented product Expected product

Basic product

Core benefit

 ON THE BASIS OF

CHARACTERSTICS OF PRODUCT
Durable products

Non-durable products
Service products

Consumer behaviour based classifications Convenience goods Shopping goods Speciality goods Unsought goods

Raw material

Components
Installation Accessories. Professional Services MRO Supplies

 The sum of all the products and variants offered

by an organisation.
The product mix can be split into the following:

Product lines.

Product mix width.

Product line length Product line depth. Product consistency