Limitations Of The Product Life Cycle (PLC)

Product Life Cycle (PLC) Introduction:-

A new product passes through set of stages known as product life cycle. Product life cycle applies to both brand and category of products. Its time period vary from product to product. Modern product life cycles are becoming shorter and shorter as products in mature stages are being renewed by market segmentation and product differentiation. About:-

Product life cycle comprises four stages:

a) Introduction stage

b) Growth stage

c) Maturity stage

d) Decline stage

A) Introduction stage

Product is introduced in the market with intention to build a clear identity and heavy promotion is done for maximum awareness. Before actual offering of the product to customers, product passes through

Different products have different properties so their life cycle also varies. It shows that product life cycle is not best tool to predict the sales. Sometimes managerial decisions affect the life of products in this case Product Life Cycle is not playing any role. Product life cycle is very fruitful for larger firms and corporations but it is not hundred percent accurate tool to predict the life cycle and sales of products in all the situations.

BREAKING DOWN 'Product Life Cycle'

First, a product idea is implemented during the introduction phase, and the idea undergoes research and development. If the idea is determined to be feasible and potentially profitable, the product is produced, marketed and rolled out in the growth phase. Assuming the product becomes successful; its production will grow until the product becomes widely available and matures in the mature stage. Eventually, demand for the product declines and it becomes obsolete, resulting in the decline

The product life-cycle concept indicates as to what can be expected in the market for a new product at various stages. i.e., introduction, growth, maturity and decline. Thus, the concept of product life-cycle can be used as a forecasting tool. It can alert management that its product will inevitably face saturation and decline, and the host of problems these stages pose. The product life-cycle is also a useful framework for describing the typical evolution of marketing strategy over the stages of product life-cycle. This will help in taking sound marketing decisions at different stages of the product