All of the information below is based on the product or service being genuinely new to its market could be available in other markets and based on the product or service being genuinely good and valued by the market. The product life cycle is a pattern of sales and profits over time for a product ivory. Even a handful of uniquely cosmopolitan and uptodate corporate presidents. The resulting strategies will then affect the products performance in later product life cycle stages. The product life cycle is an excellent tool which can be used by business managers, strategists and marketing managers to come up with product strategies. It has implications for the marketing strategy of a firm as. The stages are introduction, growth, maturity, and decline companies determine how each stage affects the products profit. Stages include introduction, growth, maturity and decline and are explained in detail here. This example shows how the yoghurt product category has moved through the product lifecycle by remixing elements of the marketing mix. The concept of the product life cycle is today at about the stage that the copernican view. Life is a series of developments and changes, resulting in peaks, decline and eventually, demise. Product life cycle theory comprises analysis of a products life in the market from the time it has been launched to its withdrawal from the market.
Aug 30, 2019 product life cycle is associated with variation in the marketing situation, level of competition, product demand, consumer understanding, etc. The management emphasis on the marketing mix elements. A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. It describes the stages a product goes through from when it was first thought of until it finally is removed from the market. Product life cycle can be defined as the life cycle of the product. Brand new innovations disrupt the product life cycle. The key emphasis will be on promoting the new product, as well as making production more costeffective and developing the right distribution channels to get the product to market.
In the growth stage, the firm must choose between a high market share and high current profits. Here is the example of watching recorded television and the various stages of. The implementation phase is the fourth phase of project life cycle in which the products or services of the project are integrated into the existing organization. This is the case not only for living beings, but also for consumer products. Product lifecycle strategies this ctr relates to the material on pp. In this article, i explain to you the concept of the product life cycle, in detail, with the help of the example of an apple iphone. Nov 29, 2018 an example of the product lifecycle model. When a product reaches maturity, its sales tend to slow or. By spending a lot of money on product improvements promotion and distribution, the firm can reach a dominant position. Products first go through the introduction stage, before passing into the growth stage. This sequence is known as the product life cycle and is associated with changes in the. In this stage, theres heavy marketing activity, product promotion and the product is put into limited outlets in a few channels for distribution.
Each of stages demands the unique or distinguished set of marketing strategies. This article dwells on the four stages of a product life cycle the product life cycle theory is used to comprehend and analyze various maturity stages of. A product life cycle is the time a product is in the market throughout its different stages. It explains the stages a product goes through from when it was first thought of until it finally is removed from the market. Also, considerations must be given to how far the product is along the product life cycle. Product passes through four stages of its life cycle. Product life cycle plc is the cycle through which every product goes through from introduction to withdrawal or eventual demise. Pricing strategy content for this chapter was adapted from the saylor foundations. But if you look at the trends in key markets over the last couple of decades, even just the last few years, consumer demand for particular products can provide some very good product life cycle examples. The product life cycle refers to a likely pathway a product may take. Awaking the customers from the new product and its benefits, in despite of advertising costs to gain the competition. The product life cycle is a marketing theory cycle or succession of strategies experienced by every product which begins with a products introduction, sometimes referenced as research and development, followed by its sales growth, then maturity and finally market saturation and decline. Each stage is associated with changes in the product s marketing position. The product life cycle can vary for different products and different product categories.
Evaluating the performance of the product portfolio provides management with information to guide product strategies of new products, product modifications, and product elimination. The product life cycle is an important concept in marketing. When a new product is produced, it advances through a sequence of stages during its lifetime. How to use the product lifecycle model smart insights. A short product life cycle is one of the hallmarks of a fad. An explanation of the former model leads to an understanding of its perceived shortcomings, and the reason for the takeup. Product life cycle is the timeline of demand for the product from its initial stage of introduction. Marketing management product life cycle tutorialspoint. The life cycle of a product is associated with marketing and management decisions within businesses, and all products go through five primary stages. Stages of the product life cycle principles of marketing. You can use various marketing strategies in each stage to try to prolong the life cycle of your products.
My grade 10 business project about different products at different stages of the product life cycle created at. In this stage the costs of managing the product may eventually exceed profits. Extending the product life cycle the marketing study guide. Most marketing executives are by now familiar with the concept of the product life cycle and product life cycle analysis. Each stage has its costs, opportunities, and risks, and individual products differ in how long they remain at any of the life cycle stages. Next comes maturity until eventually the product will enter the decline stage. The introduction stage when an organization has developed a product successfully, it will be introduced into the national and international outlet. Most alert and thoughtful senior marketing executives are by now familiar with the concept of the product life cycle. Marketing strategies used in introduction stages include. The best option is to use a products current position in the product life cycle in order to develop marketing strategies. Rate of decline is a major factor in setting strategy.
A marketer should watch on its sales and market situations to identify the stage in which the product is passing through, and. Oct 01, 2017 the initial stage of the product life cycle is all about building the demand for the product with the consumer, and establishing the market for the product. Product life cycle product life cycle is a normative and descriptive model for the life of products in general the plcs importance to marketing decision makers is to help identify appropriate strategies. Sep 24, 2014 the life span of a product and how fast it goes through the entire cycle depends on for instance market demand and how marketing instruments are used. The product life cycle contains four distinct stages. Such product strategies look at the various stages the product is in the life cycle and then come up with the appropriate strategies i initially recommend you to read the article on product life cycle and strategies. Sony vcrs are an example of a product in the decline stage. Product life cycle and its stages free essay example. Product life cycle analysis matrix marketing group. Let us now discuss the various stages of a product, starting from its innovation to its decline stage.
Product life cycle analysis 2020 update matrix marketing. This generally requires important changes in marketing strategies and methods. Below follows the figure of a product life cycle and all phases detailed descriptions shall be described later. Every stage poses different opportunities and challenges to the marketer. Thus, these are the stages which every product passes through, and the company should plan its marketing strategy keeping in mind the life stage of a product in which it falls. By expanding the focus beyond the initial sale, makers of products meant to last yearsfrom heavy construction equipment and aircraft to medicalimaging devices and it equipmentcan open up new profit opportunities across the. Marketing in this stage is aimed at increasing the products market share. For example, the product may be changed if it is being rejuvenated, or left. However, not all products go through all stages and the length of a stage varies. The traditional product life cycle curve is broken up into four key stages. Nov 30, 2016 the implementation phase is the fourth phase of project life cycle in which the products or services of the project are integrated into the existing organization. Benefits and limitations of product life cycle plc.
What is the product life cycle stages theory by vernon. A very simple explanation of the product life cycle theory. But when a manufacturer such as wow wee sells goods to retailers, the price it gets is not what we the consumers will pay for the product. The product life cycle stages are 4 clearly defined phases, each with its own. Mar 31, 2017 my grade 10 business project about different products at different stages of the product life cycle created at.
Some products are tied to specific business cycles or have seasonal factors that impact growth. Product life cycle stages managing the product life cycle. Products go through four distinct stages in the life cycle, each with its own unique marketing strategies. Extending the product life cycle product reinvention to trigger a new growth phase in a mature market, potentially entering the decline stage of the product life cycle, larger firms may be in a position to try and rethink the overall positioning of a product in order to try and broaden its market or to create new usage or opportunities for silence. Also, the marketing strategy is both the cause and the result of the product life cycle. A new concept product just entering the product life cycle may require intensive distribution to start with to launch it on to the market. Not all products follow a smooth and predictable growth path. As a product moves through its life cycle, the marketing approach must be adapted. In this stage, theres heavy marketing activity, product promotion and the product is put into limited outlets in. Marketing strategy and the product life cycle bizfluent. The product lifecycle plc refers to the different stages a product goes through from introduction to withdrawal the product lifecycle refers to a likely pathway a product may take. As the product moves through different stages of its life cycle, sales volume and profitability change from stage to stage as shown in fig.
A lifecycle approach to sales can give companies that make highcost, longlived equipment a new lease on life. Examples, strategies, definition, 5 stages, examples, notes and diagram. Product life cycle is associated with variation in the marketing situation, level of competition, product demand, consumer understanding, etc. If the objective of the project was to establish a marketable product, then product life cycle phases of market introduction, growth, maturity and a part of deterioration can be. It has implications for the marketing strategy of a firm as it seeks to introduce, grow and maintain market share. This objective was cleared with a sample of a company selling computers in vaa. This entire journey is called the product life cycle. But there are many challenges and difficulties in innovation, design and introducing a new product to a market.
In this lesson, we will define the product life cycle and use examples along with an illustration to. The product life cycle describes the period of time over which an item is developed, brought to market and eventually removed from the market. Mar 04, 2019 the product life cycle is the process a product goes through from when it is first introduced into the market until it declines or is removed from the market. The product life cycle is the process a product goes through from when it is first introduced into the market until it declines or is removed from. The growth stage is a good example to demonstrate how product life cycle strategies are interrelated. The product life cycle can be a useful tool in planning for the life of the product, but it has a number of limitations. Product life cycle of apple iphone ebook super heuristics. The product life cycle stages are 4 clearly defined phases, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products. Stages of the product life cycle, including their impact on marketing mix decisions.
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