Product Life Cycle (research, MR5)

useful model for marketing planning & control, difficult to predict precisely

3 areas:

• Product class - broad generic category e.g. cars (long maturity)
• Product form - e.g. 5-door hatchback, 2-seater sports (classic PLC)
• Brand/make - Ford, Vauxhall (erratic)

Classic:

RELEVANCE OF PLC TO PLANNING & CONTROL
Assess:

• Product's stage of life cycle
• How much longer product will contribute significantly to profits
• When new products need to launch in order to prevent cashflow problems (new products need to generate profit before cash cows enter decline)

So must regularly review existing products and analyse their future through:

• analysis of past sales and profit trends
• history of other products
• market research
• competitor analysis

Then either continue selling, prolong (modify, increase advertising, cut costs, increase promotion), or stop.