Overview
The product can be defined as goods, services or both; in the other words it’s anything that satisfies customer need. Each product has its own limited life, however it shares the same aspect and we define the period that the product goes through as the “Product life cycle”.
The Product life cycle consist of four stages starting from introduction stage, growth stage, maturity stage and decline stage. At the introduction stage, the product is not popular and can’t really make a lot of profit. Its marketing cost may be high in order to test a market and set up a distribution channel. At the growth stage, the product start making a profit, the sales increase rapidly with some cost on marketing especially brand building. Competitors enter the market, often in large number depending on how attractive the market is. When a profit starts to decline, it’s the sign of ‘Maturity stage’. At maturity stage, the sales continue to increase but at the decreasing rate until become stable, because of price competition. The product reaches its peak at this stage, most companies fight aggressively to maintain their market share. The competition is very intense, unfortunately a small firms will die one by one. During the decline stage, the profit start to drop gradually, each firm has to manage carefully. There’re not many choice to choose now; take the most out of it before exit or expand the market by using marketing mix strategies in order to extend product life.
Can product life...
Product is/are the products or services you offer and are they unique and different, superior in quality and easier to use. In my own opinion, the product or service is one the most important aspects of a successful business. If you have an item that the customer really wants they will drive out of their way to purchase it. They are usually willing to pay a higher price if the quality justifies it. When a local popular hamburger place open up in Phoenix, people drove long distances and sat in long lines just to bite into one of their juicy hamburgers.
Benetton can use Introduction Stage to launch a new product which will help to create a stable product. The growth stage will help them see if the company is making money from the product and if it’s sustainable. The maturity stage is when the product is stable and the aim for the manufacturer is now to maintain the market share they have built up this will mean that Benton can actually see how their product keeps on selling. The Decline Stage will show Benetton eventual when the market for a product will start to shrink. This shrinkage could show up to Benetton as normally the market can be
The five stages of the product life cycles begins with the Product development stage when the company finds and develops a new product idea. The second stage is the Introduction and is the period of slow sales growth as the product is presented in the market. The third stage is the Growth and is the period of rapid market acceptance and increasing profits. The fourth stage is Maturity and is the period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. The fifth and final stage is Decline and is the period when sales fall off and profits
For instance, Primark 's products offer customers clothing as a base product, of witch actual benefits are being to be cheap and trendy, and they may have some return policy as augmented benefit in case of defects. Each product may be realised following a new product development process to improve its success rate (Harris and Schaefer, 2015, p.43-47).
Product lifecycle management can supply a good line of communication between all sections of product development. This results in seamless data capturing and supply, analysts’ and those working in the development sector can co-ordinate with people in marketing to ensure that ideas such as marketing strategies which might boost sales are utilized and not overlooked [2]. This approach could include improving the product and re-launching the “new improved” version, although this involves a cost to the company [2].
What is a product life cycle? A product life cycle "describes the stages a really new product idea goes through from beginning to end. The product life cycle is divided into four major stages: (1) market introduction, (2) market growth, (3) market maturity, and (4) sales decline. The product life cycle is concerned with new types (or categories) of products in the market, not just what happens to an individual brand." (Perreault, McCarthy, 2004).
Understanding the life cycle of either a product or process is vital to understanding how resources should be used. Also, the success of a product or service may be impacted by the understanding of the life cycle. Author Gherasiam (2011) believes that a product has a limited life, the product selling evolution has different stages, profit levels are different at each level of the life cycle, and marketing strategies should differ from stage to stage.
Profits are nonexistent because of the heavy expenses of product introduction. Growth stage: a period of rapid market acceptance and substantial profit improvement.
Product development is a strategy of growth that involves new product in market or goods and services. In this presentation of Product Development to determine the practice of Lexington Medical Center, Columbia South Carolina. Lexington Medical Center is a teaching hospital and also have a residency program. LMC is a 414 bed medical complex, 600 physicians, and 5,900 employees. The product development management system I have chosen is Levemir Flex-touch insulin pen.
Finally the product moves into the sunset stage when the customers are offered alternatives, or they are no longer users of the products. Sales and cash flow begin to decline and no further investment by the business owner is expected. The following template has been create to facilitate the reader’s thinking and analysis.
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. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sec...
Among every product selling in the market, products are divided into three levels. From the first level to the third level, they are “core customer value”, “actual product” and “augmented product”.
The Business Life Cycle is a versatile term that applies to the lifetime of a business. There are seven phases in the business life cycle. The four main phases of the business life cycle are the Establishment, Growth, Maturity and Post Maturity phases. The Establishment phase is when a company is first established. This is also called the start-up phase. This is when businesses are at their most vulnerable and have to get onto a solid foundation. Profit and sales usually begin slowly and there is a high degree of uncertainty. The Growth phase is the second phase in the business life cycle. This is usually where sales increase and cash flow is normally positive. There are regular customers which means a higher profit and an increase in sales. Many businesses have been stuck in the growth phase for many years yet some have been in it for only a short while. The Maturity phase generally presents unique challenges to a business. There are very tough decisions to be made by the owner and a great deal of rethinki...
The term "product" refers to tangible, physical products as well as services. It also means defining the characteristics of your product or service to meet the customers' needs. AirAsia’s philosophy is girded by the fact that they have been seen as a small airline competitor for many years. Therefore, in order to win more customers and return customers, they need to ensure that their primary products and services are up to par and meet the defining needs of customers. AirAsia offered (product) tangible and (services) intangible good to increase the demand of customer. (AIR ASIA MARKETING PLAN, 2015)
“Product: The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user 's needs and wants. The scope of a product