Understanding the Product Life Cycle (PLC)

Free Activities, Products and Brands, Review Exercises

Topics

PLC, product life cycle, marketing models, strategy, marketing mix

Review the activity below or download the PDF student worksheet

Student Discussion Activity

Introduction

We all should know the product life cycle (PLC) model and its four stages of:

  1. Introduction
  2. Growth
  3. Maturity
  4. Decline

Some textbooks also include a fifth stage, which is BEFORE the new product comes to market – usually labelled the product development stage. But for this activity we are primarily concerned with the four stages listed above – which are all AFTER a product comes to market.

Your Task

In this activity, your task is to complete the following two tables. These are tables that we will see in marketing textbooks, but because it has a lot of boxes, we often only give it a quick glance and don’t get into the detail and we miss a lot – well, here’s our chance to dig in deeper and better understand this key marketing model.

TABLE 1 = Key Characteristics of Each PLC Stage

Please complete the table by inserting the terms listed underneath – note that each term is only used once – you can simply write the number in the right box.

  1. Medium, but declining, sales levels
  2. High costs per customer/sale
  3. Mostly early adopters
  4. Moderate growth in sales
  5. A decreasing number of competitors
  6. An increasing number of competitors
  7. Mostly innovators
  8. Negative growth in sales levels
  9. Low, but unstable, costs per customer/sale
  10. High and stable sales levels
  11. High, but reducing, costs per customer/sale
  12. Low sales levels
  13. Initially no competitors, but then a few more
  14. Sales growth in line with overall economic growth
  15. Mostly laggards
  16. Low and reducing costs per customer/sale
  17. Mixed sales levels (medium to high)
  18. Numbers of competitors are relatively stable
  19. A mix of the early and late majority
  20. Rapid growth in sales levels

TABLE 2 = Key Marketing Mix Tactics for Each PLC Stage

Please complete the table by inserting the terms listed underneath – note that each term is only used once – you can simply write the number in the right box.

  1. Build intensive distribution
  2. Utilize sales promotions to generate consumer trials
  3. Progressively phase out poorer selling product lines
  4. Increase product differentiation and augmentation
  5. Build selective distribution
  6. Price to maximize profits as sales decline
  7. Use price skimming or penetration depending upon latent demand
  8. Utilize sales promotion to encourage brand switching
  9. Promote the brand’s positioning and competitive advantages
  10. Create awareness among innovators and suitable channels
  11. Expand product line extensions
  12. Offer a single or basic product only
  13. Use penetration pricing to gain market share
  14. Utilize sales promotions to win market share
  15. Reduce distribution channels
  16. Promote to early adopters and the early majority
  17. Use competitive pricing
  18. Maximize intensive distribution
  19. Minimize promotional spend on advertising
  20. Utilize sales promotions to retain interest in the product

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