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Evaluate the product life cycle as a tool for analysis in market
The usefulnes of product life cycle
Product life cycle study
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Product Life Cycle (PLC)
Introduction: - A new product goes through a set of different stages said to be product life cycle. The product life cycle goes through different or multiple stages, Life cycle is primarily associated with marketing theory. Mainly the product life cycle means the age from starting of new product to its declining date, as we can say product has introduced to the market to the end of the product refers to the product life cycle at last we can say that succession of strategies by business management as a product goes through its life-cycle. About:- Product life cycle have four stages: a) Introduction stage b) Growth stage c) Maturity stage d) Decline stage
The product life cycle is an important concept in marketing.
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At declining stage, marketing mix decisions depend on company’s strategy. At this point, the market has often reached saturation as a result of competitors releasing their own version of your product. Your product or service may experience a decreasing rate of sales, which should eventually stabilise. For example, if a company want to harvest, the product will remain same and price will be reduced. In case of liquidation, supply will be reduced dramatically. Limitations of Product Life Cycle (PLC) Product life cycle is criticized that it has no empirical support and it is not fruitful in special cases. Different products have different properties so their life cycle also varies. It shows that product life cycle is not the 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 tools to predict the life cycle and sales of products in all the situations. SIGNIFICANCE OF PRODUCT LIFE-CYCLE The product life cycle is an integral process in management of any product and revolves around the introduction, growth, maturity and decline stages. For emerging businesses, the cycle concept is an ideal tool that enables marketers to forecast future sales and plan new marketing strategies. The marketer’s marketing objectives depend mostly on where the product is in its life cycle. For example, in the introduction phase, companies focus on introducing their products to the market. In the growth stage, however, they focus on sales and pursue efforts to distinguish their products from those of competitors. Thus, the concept of product life-cycle can be used as a forecasting tool. The marketing lifecycle is less comprehensive than the concept of the lifecycle in manufacturing, which encompasses all the stages a product goes
Nevertheless, it must “defend” its current market share if not increase it, by maintaining premium quality and develop innovative products. The marketing mix strategies will effectively achieve targeted revenue and profitability in the near future.
have a bigger say than the mangers who also have a say in how the
The next step is the growth stage. In this stage product growth is monitored and big investments are made. Maturity stage the growth of the outputs is significant. For the company to ensure product survival in the market and gain a competitive advantage over competitors it has to incorporate product differentiation. The final stage involves product decline stage. In this juncture product sale goes down and the product identification
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 four stages of the technology life cycle are Innovation Stage, Syndication Stage, Diffusion Stage, and Substitution Stage.
for a product over a period of time. It shows the revenue by a product. from its introduction to its eventual decline. There are four stages to the product life cycle: Introduction, growth, maturity and decline. Research and development is the first stage of the product life cycle.
Product Life Cycle shortened as more companies had product launches which propelled product development at a higher frequency
Michael Porter tells us how the life cycle works through stages, first of which is the development phase, into the introduction, growth, maturity, and decline. Hunsk motors didn’t carefully take into account each phase of its product sold, and lacked the ability to connect consumers towards the motorcycles identity. By introducing...
This is end stage for the product as products vanish from the market and time for entry of new product comes.
A marketer doesn’t just have a plan. Marketers now open up to a wider strategic plan and it’s based on steps that balance out what the market is offering consumers. These marketers must analyze their production with these steps, then make a portfolio of the growth and even their down falls therefore this keeps these marketers to continuously innovate and create even a greater amount of value for their customers. Marketing management functions are discussed along with the marketing mix and strategy.
The typical life cycle of a product goes through a sequence of stages from market introduction, market growth, market maturity, and sales decline. This sequence is known as the product life cycle and it is associated with the evolving marketing situations that generally make up how a company makes decisions that can either set for a thriving business or one that can harm them. The company’s marketing mix and strategy allows for a company to make decisions based on the nature of their product and the time they introduce themselves in the market. We decided to improve the regular snicker bar to target the health-conscious consumers. Our product the Skinny Snicker Bar is going to go through the life cycle like any other product would.
emerging or new market. It can originate from new technology or new market opportunities (Eliashberg, J., Lilien, G. L., & Rao, V. R. 1997). Literature defines product development as exploiting an untapped market opportunity and turning it into a value product for customer satisfaction. Development and introduction of a new product requires extensive research on understanding customer needs, market structure, emerging trends and analysing the internal & external competitive market environments. To evaluate customer satisfaction previous researches provide strong relationship between customer satisfaction and product quality, product features and value for money. ***
The product is either a tangible good or an intangible service that is able to meet a specific customer need or demand. All products follow product life cycle and it is important for marketers to understand and plan for different stages and their unique challenges. It is essential to understand all of the problems that the product is attempting to solve. The benefits offered by the product and all of its features need to be understood and the unique selling proposition of the product need to be studied. Moreover, the potential buyers of the product need to be identified and understood.
The distinction between the start-up and growth stages in not easily defined. The distinction lies in the revenues, profits are stronger and are consistent with an increase in customers, as well as, new and exciting opportunities for the employees to pursue. Managers can look forward to many managerial challenges, perspective policy issues and re-evaluating the business plan for revisions. A manager’s focus should be in the running of the business, with a greater emphasis on accounting and human resource management systems. New staff will have to be hired, trained and prepared for the influx of business.
1. Why is LCA needed? Life Cycle Assessment is used to measure the life cycle carbon footprint of a product. LCA provides the manufacturer and material suppliers such as vendors with information to reduce life cycle greenhouse gases emissions.