1. Unit III - Services Marketing - Mr.K.Mohan Kumar
Unit – III Marketing strategies in the different stages of Service Life Cycle
5/27/2018
Unit III - Services Marketing - Mr.K.Mohan Kumar

2. Unit III - Services Marketing - Mr.K.Mohan Kumar
Service Life Cycle
The Service life cycle (PLC), like the biological life cycle, describes the advancement of services through identifiable stages of their existence as shown below:
Exhibit 10-3
5/27/2018
Unit III - Services Marketing - Mr.K.Mohan Kumar

3. SLC Stages and Characteristics
The interaction of the diffusion process and firm competition means that marketers face a different situation at each stage of the service life cycle.
Exhibit 10-5
5/27/2018
Unit III - Services Marketing - Mr.K.Mohan Kumar

4. SLC Marketing Strategies
Shortening lengths of product life cycles and their different shapes increase the complexity of marketing decisions. Firms respond to these trends by developing marketing strategies to take advantage of each life cycle stage.
5/27/2018
Unit III - Services Marketing - Mr.K.Mohan Kumar

5. Services Life-Cycle Strategies
The Services Life Cycle (PLC) has Five Stages
Services Development, Introduction, Growth, Maturity, Decline
Not all Servicess follow this cycle:
Fads
Styles
Fashions
5/27/2018
Unit III - Services Marketing - Mr.K.Mohan Kumar
Goal 3: Know the stages of the Services life cycle process

6. Services Life-Cycle Strategies
The Services life cycle concept can be applied to a:
Services class (soft drinks)
Services form (diet colas)
Brand (Diet Dr. Pepper)
Using the PLC to forecast brand performance or to develop marketing strategies is problematic
5/27/2018
Unit III - Services Marketing - Mr.K.Mohan Kumar
Goal 3: Know the stages of the Services life cycle process

7. Services Life-Cycle Strategies
PLC Stages
Begins when the company develops a new-Services idea
Sales are zero
Investment costs are high
Profits are negative
Services development
Introduction
Growth
Maturity
Decline
5/27/2018
Unit III - Services Marketing - Mr.K.Mohan Kumar
Goal 4: Realize how marketing strategies change during the Services life cycle

8. Services Life-Cycle Strategies
PLC Stages
Low sales
High cost per customer acquired
Negative profits
Innovators are targeted
Little competition
Services development
Introduction
Growth
Maturity
Decline
5/27/2018
Unit III - Services Marketing - Mr.K.Mohan Kumar
Goal 4: Realize how marketing strategies change during the Services life cycle

9. Marketing Strategies: Introduction Stage
Services – Offer a basic Services
Price – Use cost-plus basis to set
Distribution – Build selective distribution
Advertising – Build awareness among early adopters and dealers/resellers
Sales Promotion – Heavy expenditures to create trial
5/27/2018
Unit III - Services Marketing - Mr.K.Mohan Kumar
Goal 4: Realize how marketing strategies change during the Services life cycle

10. Services Life-Cycle Strategies
PLC Stages
Rapidly rising sales
Average cost per customer
Rising profits
Early adopters are targeted
Growing competition
Services development
Introduction
Growth
Maturity
Decline
5/27/2018
Unit III - Services Marketing - Mr.K.Mohan Kumar
Goal 4: Realize how marketing strategies change during the Services life cycle

11. Marketing Strategies: Growth Stage
Services – Offer Services extensions, service, warranty
Price – Penetration pricing
Distribution – Build intensive distribution
Advertising – Build awareness and interest in the mass market
Sales Promotion – Reduce expenditures to take advantage of consumer demand
5/27/2018
Unit III - Services Marketing - Mr.K.Mohan Kumar
Goal 4: Realize how marketing strategies change during the Services life cycle

12. Unit III - Services Marketing - Mr.K.Mohan Kumar
Activity
Video Presentation:
“ Mobile Phone Life Cycle”
5/27/2018
Unit III - Services Marketing - Mr.K.Mohan Kumar

13. Services Life-Cycle Strategies
PLC Stages
Sales peak
Low cost per customer
High profits
Middle majority are targeted
Competition begins to decline
Services development
Introduction
Growth
Maturity
Decline
5/27/2018
Unit III - Services Marketing - Mr.K.Mohan Kumar
Goal 4: Realize how marketing strategies change during the Services life cycle

14. Marketing Strategies: Maturity Stage
Services – Diversify brand and models
Price – Set to match or beat competition
Distribution – Build more intensive distribution
Advertising – Stress brand differences and benefits
Sales Promotion – Increase to encourage brand switching
5/27/2018
Unit III - Services Marketing - Mr.K.Mohan Kumar
Goal 4: Realize how marketing strategies change during the Services life cycle

15. Services Life-Cycle Strategies
PLC Stages
Declining sales
Low cost per customer
Declining profits
Laggards are targeted
Declining competition
Services development
Introduction
Growth
Maturity
Decline
5/27/2018
Unit III - Services Marketing - Mr.K.Mohan Kumar
Goal 4: Realize how marketing strategies change during the Services life cycle

16. Marketing Strategies: Decline Stage
Services – Phase out weak items
Price – Cut price
Distribution – Use selective distribution: phase out unprofitable outlets
Advertising – Reduce to level needed to retain hard-core loyalists
Sales Promotion – Reduce to minimal level
5/27/2018
Unit III - Services Marketing - Mr.K.Mohan Kumar
Goal 4: Realize how marketing strategies change during the Services life cycle