product life cycle

Product Service Management

Product Service Management involves planning, developing, and managing a product or service throughout its lifecycle to meet customer needs and maximize profitability.

Product Planning

Product planning includes identifying customer needs, defining product objectives, and managing product features to ensure market success.

Product Features

Product features refer to the characteristics of a product that add value and differentiate it from competitors. These include design, quality, functionality, and branding.

Kotler's 5 Levels of a Product

1. Core Product – The fundamental benefit or service the product provides.

2. Basic Product – The actual product with necessary features.

3. Expected Product – The attributes customers expect.

4. Augmented Product – Additional features or services that enhance value.

5. Potential Product – Future improvements and innovations.

Product Mix

The product mix refers to the total range of products offered by a company. It consists of:

• Width – The number of product lines a company offers.

• Depth – The number of variations within a product line.

Modifying the Product Mix

Companies modify their product mix to stay competitive:

• Add – Introduce new products.

• Modify – Improve existing products.

• Delete – Remove underperforming products.

The Product Life Cycle (PLC)

The Product Life Cycle outlines the stages a product goes through from introduction to decline.

1. Introduction Stage

   • Definition: The product is launched in the market.

   • Marketing Strategy Adjustments:

     • High marketing costs

     • Limited customer awareness

     • Focus on promotion and distribution

2. Growth Stage

   • Definition: Sales and customer demand increase.

   • Marketing Strategy Adjustments:

     • Increased competition

     • Enhanced product features

     • Expanded distribution

3. Maturity Stage

   • Definition: Sales peak, and competition is intense.

   • Marketing Strategy Adjustments:

     • Product differentiation

     • Competitive pricing

     • Promotional offers

4. Decline Stage

   • Definition: Sales decrease due to market saturation or changing trends.

   • Marketing Strategy Adjustments:

     • Reduce marketing expenses

     • Discontinue or reposition the product

     • Target niche markets

Launching a New Product

The process of launching a new product includes:

1. Generating Ideas – Brainstorming new product concepts.

2. Screening Ideas – Filtering out unfeasible ideas.

3. Business Proposal – Assessing profitability and feasibility.

4. Product Development – Designing and creating prototypes.

5. Product Testing – Evaluating performance and customer acceptance.

6. Evaluating Acceptance – Analyzing market response and making adjustments.