The above diagram depicts a typical product life cycle. The product cycle theory then introduces five stages of production. A guide to new product development product life cycle. The product lifecycle plc describes the stages of a product from launch to being discontinued. A marketer looking for the next feature to add to a digital camera to extend the maturity phase could easily miss the impact that the smartphone would have on the. The product life cycle concept is derived from the fact that a given products volume and revenue follow a typical pattern of four phases cycle. The product life cycle can focus a marketer on a defined set of products and competitors in the current marketbut miss broad trends or innovations in adjacent markets and products. Product life cycle and marketing management strategies. The product life cycle theory and product line management. Every stage poses different opportunities and challenges to the marketer. Therefore, it is the time for the product to end its life cycle and withdraw from the market completely. Different stages of the product lifecycle, however some problems can arise.
It is a strategy tool that helps companies plan for new product development and refine existing products. Research professionals will be able to provide options and recommendations to select the appropriate approach. Stages include introduction, growth, maturity and decline and are explained in detail here. Display the dau life cycle wall charts in the classroom. Once a product has been developed, the first stage is its introduction stage. According to s blog post, when introducing a new product to market, you. The product life cycle can be a useful tool in planning for the life of the product, but it has a number of limitations. As the product moves through different stages of its life cycle, sales volume and profitability change from stage to stage as shown in fig. 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. Pdf the product life cycle theory and product line. Due to a limited lifespan, the company must invest its resources in new product development to make sure that the product has a long and healthy life cycle five stages of product life cycle plc. This article is focusing on a number of the primary product life cycle management techniques that can be used to optimize a product s revenues in respect to its effective positioning in a market during the introduction stage of the product life cycle. The traditional product life cycle curve is broken up into four key stages.
Products first go through the introduction stage, before passing into the growth stage. The sixphase comprehensive project life cycle model. 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. Each stage represents a different set of uncontrollable.
For example, the human life cycle is comprised of 5 main stages. The product life cycle plc concept is a wellknown marketing strategy and planning tool. 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. Examples, strategies, definition, 5 stages, examples, notes and diagram. The different stages of plc as shown in figure11 are explained as follows. So product life cycle will not be only the routine stages which companies should go through but should also take precedence of profit gaining among market competition. The life of most products can be divided into five key stages. Various research tools are available to provide assistance to make the most sound business decisions at different stages of a products life cycle. How to use the product lifecycle model smart insights. This life cycle is the representative fact of the existence of every. Newproduct development strategies product lifecycle. The understanding of a products life cycle, can help a company to understand and realize when it is time to introduce and withdraw a product from a market, its position. Life is a series of developments and changes, resulting in peaks, decline and eventually, demise.
Stages of the product life cycle wiley online library. This is the case not only for living beings, but also for consumer products. Profits rise and fall at different stages of the product life cycle. The four stages are shown in the table below, although decline can be avoided by reinventing elements of the product. A marketer should watch on its sales and market situations to identify the stage in which the product is passing through, and.
According to raymond vernon, products can be categorized into three stages depending on product life and trade behavior in the international trade market. Challenges in the product life cycle principles of. Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage. Product life cycle consists of different stages that a product or brand must occupy in its life.
The understanding of a product s life cycle, can help a company to understand and realize when it is time to introduce and withdraw a product from a market, its position. The main purpose of this thesis is to analysis different kinds of strategies that companies can or should observe for managing a profitable product life cycle. There may of course be product improvements new projects to extend the product life. It has implications for the marketing strategy of a firm as. The main purpose of the paper is to describe the influences of the economic cycle on the life cycle of a product, which is a territory. 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. Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller. Different products available in the market, as you can see that companies are trying to make new and unique products according to. There are different stages in the life for a product.
The territory is defined as a product with the specific. Each of stages demands the unique or distinguished set of marketing strategies. Since the concept has been presented somewhat differently by different. Not all products follow a smooth and predictable growth path.
Marketing strategies for the four different stages of plc. For consumer products the product life cycle typically has five phases. The products life cycle period usually consists of five major steps or phases. Product life cycle stages, plays and important part in the product management. Figure 1 several stages of product life cycle plc can. The product development phase is the phase in which a company has a new idea for a.
If the project produces a new facility, such as a petrochemical processing. The concept is based on a simple biological analogy of stages over a products life, which is intuitively appealing, but unfortunately has limited utility in practice. Stages of the product life cycle principles of marketing. Products require different marketing, financial, manufacturing, purchasing, and human resources strategies in each life cycle stages. Marketing strategy and the product life cycle bizfluent. The management emphasis on the marketing mix elements. In this stage, the product is being released into the market. A life cycle can be comprised of more than the three basic stages depending on the species. Products go through four distinct stages in the life cycle, each with its own unique marketing strategies. This is a great example of the product life cycle plc in action. Definition the stages through which the individual products develop over a period of time is known as product life cycle.
Product life cycle is defined as, the cycle through which every product goes through from introduction to withdrawal or eventual demise. About the author jennifer is a seasoned market researcher with 20 years of experience. There is a chance of missing one or more stage in product life cycle i. Next comes maturity until eventually the product will enter the decline stage. 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. The 6 stages of the product life cycle hubspot blog. The concept of the product life cycle is today at about the stage that the copernican. 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 and tactics for presenting a product. The product life cycle is the concept that a product goes through several stages in the course of its life.
Some products are tied to specific business cycles or have seasonal factors that impact growth. The case of mobile phones article pdf available in ieee transactions on engineering management 512. The five stages in the product life cycle are product development, introduction, growth, maturity, and decline. The life cycle analysis of a product enables an organization to make efficient pricing policies with respect to each stage of the product. All 4 stages of the product life cycle require a different. Product life cycle is a very important concept for marketer as it is directly connected with the marketing strategies for the product avlonitis and papastathopoulou, 2006. Product passes through four stages of its life cycle. This article is focusing on a number of the primary product life cycle management techniques that can be used to optimize a products revenues in respect to its effective positioning in a market during the introduction stage of the product life cycle. Why companies should know their product life cycle.
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