Product life cycle in marketing

For example, a seed is planted introduction ; it begins to sprout growth ; it shoots out leaves and puts down roots as it becomes an adult maturity ; after a long period as an adult the plant begins to shrink and die out decline. At this point there is a downturn in the market.

Product life cycle in marketing

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And just like us, these products have a life cycle. Older, long-established products eventually become less popular, while in contrast, the demand for new, more modern goods usually increases quite rapidly after they are launched.

Product life cycle in marketing

Because most companies understand the different product life cycle stages, and that the products they sell all have a limited lifespan, the majority of them will invest heavily in new product development in order to make sure that their businesses continue to grow.

Product Life Cycle Stages Explained The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.

Introduction Stage — This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing.

Growth Stage — The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase.

This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage. Maturity Stage — During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up.

Product life cycle in marketing

This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.

This shrinkage could be due to the market becoming saturated i. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets. Here is the example of watching recorded television and the various stages of each method: However, the key to successful manufacturing is not just understanding this life cycle, but also proactively managing products throughout their lifetime, applying the appropriate resources and sales and marketing strategies, depending on what stage products are at in the cycle.The product life cycle describes the period of time over which an item is developed, brought to market and eventually removed from the market.

The cycle is broken into four stages: introduction. As a product moves through its life cycle, the marketing approach must be adapted. 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 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 include introduction, growth, maturity and decline and are explained in detail here.

The product life cycle stages can be used for describing how products and markets work. When used carefully, the PLC concept can be a great help in developing goods marketing strategies for the different product life cycle stages.

Read Lessons Goals[ edit ] The goals of product life cycle management PLM are to reduce time to market, improve product quality, reduce prototyping costs, identify potential sales opportunities and revenue contributions, and reduce environmental impacts at end-of-life. To create successful new products the company must understand its customers, markets and competitors.
Product Life Cycle Stages Explained Stages of a Product Life Cycle MarketingWit Staff Nov 18, The product life cycle theory has become popular with economists and marketers alike, as it holds ground in both these fields.

Product Life Cycle Stages Explained. The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.

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Introduction Stage – This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales . As a product moves through its life cycle, the marketing approach must be adapted.

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.

Product Life Cycle