The Five Stages of PLC By: Sabrina Willemse
Introduction The target market at this stage is innovators. The pricing strategy is skim- high. This is the stage that the product is promoted. The strategies of penetration and skimming are the two different strategies used in this stage of PLC. Penetration is when prices are set high to begin with and get reduced and skimming is when prices are set low to begin with and gradually go up.
Growth Stage This is the most important stage. The target market of this stage is early adopters. The pricing strategy is penetrate- med high. This is the stage where the product starts to grow. At this stage you are concentrated on advertising your product and making it look better the the competitors product. Ways to advertise a product is by radio, TV, magazines, and newspapers.
Maturity Stage The target market is early majority. The pricing strategy is penetrate- med high. During this stage the sales of the product increase much more slowly. It is important in during this stage to make your product different from your competitors.
Decline Stage The target market at this stage is late majority. The pricing strategy is lower. At this point of the product life cycle the product begins to fall. A new product has come out or everyone has already bought the product. The only way to increase sales during this stage is to reduce spending, other than withdrawal of the product.
Decision Stage The target market at this stage is laggards. The pricing strategy is to liquidate. This is the end of the road for the product. At this point you look for new uses or a new market.
re u p d ta n licko C