The case of mobile phones article pdf available in ieee transactions on engineering management 512. The product life cycle plc concept is a wellknown marketing strategy and planning tool. Product development, product introduction, product growth, product maturity and finally product decline. Every project has a beginning, a middle period during which activities move the project toward completion, and an ending either successful or unsuccessful. The project life cycle phases the project manager and project team have one shared goal. Describe the international product life cycle and discuss various life cycle stretching strategies. Products go through four distinct stages in the life cycle, each with its own unique marketing strategies. The concept is based on a simple biological analogy of stages over. Product life cycle stages managing the product life cycle. Understanding the 5 stages of the project life cycle. Product life cycle of apple iphone ebook super heuristics. The products life cycle period usually consists of five major steps or phases. Mar 04, 2019 the product life cycle is the process a product goes through from when it is first introduced into the market until it declines or is removed from the market. The life cycle of a product is associated with marketing and management decisions within businesses, and all products go through five primary stages.
The concept of the product life cycle is today at about the stage that the copernican view of the universe was 300 years ago. Not all products follow a smooth and predictable growth path. Due to a limited lifespan, the company must invest its resources in new product development to make sure that the product has a long and healthy life cycle five stages of product life cycle plc. This article dwells on the four stages of a product life cycle the product life cycle theory is used to comprehend and analyze various maturity stages of products and industries. The life of most products can be divided into five key stages. A marketer should watch on its sales and market situations to identify the stage in which the product is passing through, and. There is a chance of missing one or more stage in product life cycle i. While some products may stay in a prolonged maturity state, all products eventually phase out of the market due to. The product begins to lose consumer appeal and sales drift downward, such as when buggy whips lost out with the advent of automobiles. Product life cycle theory comprises analysis of a products life in the market from the time it has been launched to its withdrawal from the market. In this article, i explain to you the concept of the product life cycle, in detail, with the help of the example of an apple iphone.
The different stages of plc as shown in figure11 are explained as follows. Sales slowly grow as the product is introduced in the market. We can analyze from the product life cycle that as the product moves to the next stage of its life cycle, the sellers control over prices keeps on further reducing. The conditions in which a product is sold advertising, saturation changes over time and must be managed as it moves through its succession of stage. The product life cycle is the concept that a product goes through several stages in the course of its life.
Jun 30, 2012 product life cycle consists of different stages that a product or brand must occupy in its life. When the company finds and develops a new product idea, product development starts. The life story of most successful products is a history of their passing through certain recognizable stages. The product life cycle stages can be used for describing how products and markets work. Product life cycle 4 stages of products life feedough. Product life cycle and marketing management strategies. The concept is based on a simple biological analogy of stages over a products life, which is intuitively appealing, but unfortunately has limited utility in practice. Industry life cycle identify different stages of an. The series of stages is known as the product life cycle. This article is focusing on a number of the primary product life cycle management techniques that can be used to optimize a product s revenues in respect to its effective positioning in a market during the introduction stage of the product life cycle.
Sales and profits over the products life from inception to demise product life cycle 10 applications of the product life cycle the plc concept can describe a. Most products have a short lifespan and organization must be aware of which product life cycle stage the product is in at a particular. Business life cycle understanding the 5 different stages. Descriptivemodel for the life of products in general individual products will experience their own variation some products may have a higher sales curve appeal to a larger number of segments than normal some products may have a lower sales curve appeal to a smaller segment than normal. Wood, systems research and analysis iii noel nachtigal, cyber systems assessments jovana helms,sandia systems national laboratories research and analysis iii p. The characteristics of the product life cycle stages help us to explain the development of sales that can be observed over the lifetime of a product. However, using the plc concept for forecasting product performance or developing marketing strategies brings some.
The products capabilities are being recognized the price will begin to decline, with volume the placement becomes more wide spread the promotion is focused on the products need satisfying properties. Jun 25, 2018 product life cycle is the set of stages a product goes through during its lifetime. Product life cycle can be defined as the analysis of the complete life span of a product. Marketing strategies used in introduction stages include. These stages can last for different amounts of time, some can be months or years. The product life cycle contains four distinct stages. An industry life cycle depicts the various stages where businesses operate, progress, prospect and slump within an industry. The product life cycle can be a useful tool in planning for the life of the product, but it has a number of limitations. A very simple explanation of the product life cycle theory. The product life cycle traditionally consists of four stages.
The product life cycle plc is a biological metaphor that traces the stages of a products acceptance from its introduction birth to its decline death. The understanding of a products life cycle, can help a company to understand and realize when it is time to introduce and withdraw a product from a market, its position in the market compared to competitors, and the products success or failure. An industry life cycle typically consists of five stages startup, growth, shakeout, maturity, and decline. In addition, the model aids in determining the required marketing activities and the level of support that is needed to secure the future success of the product. Product development, product introduction, product growth, product maturity and. You can use various marketing strategies in each stage to try to prolong the life cycle of your products.
Examples, strategies, definition, 5 stages, examples, notes and diagram. When a company launches a new product, it must be familiar with its different product life cycle stages. Characteristics of the product life cycle stages and. Product passes through four stages of its life cycle. We can analyze from the product life cycle that as the product moves to the next stage of its lifecycle, the sellers control over prices keeps on further reducing. Moreover, it plays a crucial role in various organizational functions, such as corporate strategy, finance, and production. A short product life cycle is one of the hallmarks of a fad. Products generally go through a life cycle with predictable sales and profits. Definition of product life cycle plc before discussing the product life cycle stages, it is wise to explain what the product life cycle actually is. Product life cycle plc is the cycle through which every product goes through from introduction to withdrawal or eventual demise.
The management emphasis on the marketing mix elements. While some products may stay in a prolonged maturity state, all products. Stages of the product life cycle wiley online library. In this stage, theres heavy marketing activity, product promotion and the product is put into limited outlets in. The company must be aware that the product will not sell forever. When used carefully, the plc concept can be a great help in developing goods marketing strategies for the different product life cycle stages. As the product moves through different stages of its life cycle, sales volume and profitability change from stage to stage as shown in fig. Product life cycle is defined as, the cycle through which every product goes through from introduction to withdrawal or eventual demise. Modern product life cycles are becoming shorter and shorter as products in mature stages are being renewed by market segmentation and product differentiation.
The journey starts from the day it is just an idea to the day it is finally removed from the market. It is an essential tool for analyzing the prospective success or potential of a new product through research and development. The life cycle analysis of a product enables an organization to make efficient pricing policies with respect to each stage of the product. Pdf application of latestage product life cycle strategies. Each stage is associated with changes in the products marketing position. Usually, there are 4 different stages in the product life cycle. Pdf the product life cycle theory and product line. Life is a series of developments and changes, resulting in peaks, decline and eventually, demise. Identify the stages of the product life cycle a company has to be good at both developing new products and managing them in the face of changing tastes, technologies, and competition. Product life cycle plc product life cycle stages notes desk. These phases exist and are applicable to all products or services from a certain make of automobile to a multimilliondollar lithography tool to a onecent capacitor.
The creation of the product determines largely what can be done with the product in the later life cycle phases. There may of course be product improvements new projects to extend the product life. 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. This necessitates continuous adjustments in the pricing policy over the various phases of the product life cycle so as to get the best return in each case. Each stage has its costs, opportunities, and risks, and individual products differ in how long they remain at any of the life cycle stages. 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. For consumer products the product life cycle typically has five phases. All 4 stages of the product life cycle require a different. Every stage poses different opportunities and challenges to the marketer. Box 969 livermore, california 94550 abstract while the increased use of commercial. The above diagram depicts a typical product life cycle.
The development stage of the product life cycle occurs when a corporation finds and develops a new product idea. 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. Profits rise and fall at different stages of the product life cycle. Newproduct development strategies product lifecycle strategies. Contemporary research have moved beyond the oneofakind product life cycle model with isolated phases of introduction, growth, maturity, and decline. Each of stages demands the unique or distinguished set of marketing strategies. A product is generally undergoing several changes involving a lot of money and time during. Product life cycle management plm is the succession of strategies by business management as a product goes through its life cycle. Stages include introduction, growth, maturity and decline and are explained in detail here.
So, in order to save itself from the stage of saturation and decline, the firm makes a fresh innovation just at a time when the existing product is about to enter the saturation stage. Product life cycle product life cycle is a normative and descriptive model for the life of products in general the plcs importance to marketing decision makers is to help identify appropriate strategies. According to s blog post, when introducing a new product to market, you. Products require different marketing, financial, manufacturing, purchasing, and human resources strategies in each life cycle stages. This entire journey is called the product life cycle. The sixphase comprehensive project life cycle model. This is the case not only for living beings, but also for consumer products. Marketing strategy and the product life cycle bizfluent. The product life cycle plc is the course of a products sales and profits over. Companies always attempt to maximize the profit and revenues over the entire life cycle of a product. Stages of the product life cycle principles of marketing. The product life cycle theory and product line management. The life cycle has four stages introduction, growth, maturity and decline.
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