Scribd Logo
Upload

Welcome to Scribd!

  • Product Life Cycle

    Uploaded by

    Chandra Hasan
    18 views8 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    18 views8 pages

    Product Life Cycle

    Uploaded by

    Chandra Hasan

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 8
    sara MARKETS > COMMODITIES UPDATED: UN 15, 2021257 PM EDT -ORIGMAL: MAR 42018 What Is the Product Life Cycle? Stages and Examples The product life cycle is the course of the life of a product from when the product is in development to after it has been removed from the market. ANNE SRADERS Whether you%e looking through your parents old VHS tapes or shopping for anew smartphone, youre participating in ang experiencing etferent stages of the product Ife cyte, or PLC, When a product enters the market, often unbeknownst to the consumer, thas alife cycle that caries it from being new and useful to eventually being retired out of circulation inthe market. This process happens continually -taking product from ther beginning inoduetion stages all the way Urough their decline and eventual retirement. What Is the Product Life Cycle? ps nwtatolcerinutliconedteepetil ied 468254 ‘e hate te Preeti Ce Stage na xan TraSae The product ife cycle is the process a produet goes through fram when ti fis intcoduced into the ‘market unl t declines or le removed from the market. The lifecycle hae fou stages -invoduetion, growth, matuy and decline. While some products may stay in @ prolonged maturity state, all products eventually phase out of the matket due to several factors including saturation increased competition, decreased demand and dropping sales. Adstionally, companies use PLC analels (examining thelr products Ife cycle) to create strategies to sustain their product's longevity or change it to meet with market éemand or developing technologies 4 Stages of the Product Life Cycle General there are four stages tothe product Ife cyole, fom the product's development tts decline in value and eventual retirement frm the markt 1. Introduction Conce a pracuet has been developed, the fist stage i it introduction stage n this stage, the products being released into the market. When a new product is released, tis often ahigh-stakes time inthe products lf cycle although it does not necessarily make or break the product's eventual success, ring the introduction stage, marketing and promotion areata high -and the company often invests the most in promoting the product ana getting it int the hands of consumers. This is perhaps best showcased in Apple's (AAPL) - Get Apole nc. (AAPL) Report famous launch presentations, whicn highlight the new features oftheir newly (or soon to be relessed) products, Item this stage thatthe company is fist abe to get a sense of how consumers respond tothe produc, f they lke it and how successful It may be. However, tis also often aheavy-spending petiod forthe company with no guarantee that the product wil pay fr itself trough sales, ps nwtatolcerinutliconedteepetil ied 468254 28 hate te Pree Le Ce Stages na xa Trae Costs are generally very high and there is typically ttle competition. The principle goals ofthe Introduction stage are to bulld demand fo the product and gett into the hands of consumers, hoping t later cash in on its growing popularity. 2. Growth By the growth stage, consumers are already taking tothe product and increasingly buying It The product concept is proven and is becoming more popular - and sales ae inreasing, Other companies become aware ofthe product and its space inthe marke, which is beginning to raw attention and increasingly pullin revenue. If competition forthe products especially high the ‘company may sil heavily invest in advertising and promotion of the product to beat out competitors. As result of the product growing, the market itself tends to expanc. The product in the growth stage is typically tweaked to improve functions and features, ‘As the market expands, mose competition often drives prices dawn to-make the specific products competitive. However sales ae usvaly increasing in volume and generating revenue. Marketing in this stages almed at increasing the products market shar. 3. Maturity When a product reaches matuiy its sales tend to slow or even stop signaling a largely saturated market. this point, sales can even start to crop. Prcing at this stage can tend to get compete, signaling margin shinking as prices begin faling due to the weight of outede pressures like competition or lower demand. Marketing a this point is targeted at fending off competition, and companies will often develop new or altered products to reach different market segments Given the highy saturated marke, tis ypiclly inthe maturty stage ofa product that less successful competitors are pusned out of competition often called the 'shake-out point” In this stage, saturation is reached and sales volume is maxed out. Companies often begin Innovating to maintain or increase the market share, changing or developing thei product to meet with new demographics or developing technologies. ps nwtatolcerinutliconedteepetil ied 468254 se sara

    You might also like