Explain how the product life cycle
Marketing campaigns aimed at a broader audience and at growing market share for the product.
Examples include Coca-Cola, Gillette, American Express, which still live on after more than years. Recommended Reading.
Explain how the product life cycle
When used carefully, the PLC concept can be a great help in developing goods marketing strategies for the different product life cycle stages. Companies usually do not need additional funding at this stage. Product Life Cycle What are the main stages of the product life cycle? When the Decline happens the business will consider: Keeping the product on the market but adding or removing features or finding new uses for it. Extending the product life cycle[ edit ] Extending the product life cycle by improving sales, this can be done through Advertising: Its purpose is to get additional audience and potential customers. Woolworth's had a store in just about every small town and city in America until it shuttered its stores in Selection of a distribution model to get the product onto the market. Something important to notice is that all these techniques rely on advertising to become known. For innovative products there is limited competition at this stage, so pricing can remain at a higher level. Not all products reach this final stage. It is used to predict a likely shape of sales growth for a typical product. The ratio of the product repetition for the trial procurement has risen. After successful Introduction comes the Growth stage. The products start to gain distribution as the product is initially new in the market and in this stage the quality of the product is not assured and the price of the product will also be determined as low or high.
Price reduction: Many customers are attracted by price cuts and discount tags. When the Decline happens the business will consider: Keeping the product on the market but adding or removing features or finding new uses for it. Since risk is high, outside funding sources are limited.
Product life cycle introduction
While some products are introduced and die quickly afterwards, others stay in the mature stage for a very long time. As a product matures, it enters its most profitable stage, while the costs of producing and marketing decline. Marketing campaigns aimed at a broader audience and at growing market share for the product. Whilst there are many products whose sales do indeed follow the classic shape of the life cycle model, it is not inevitable that this will happen. Packaging: New, attractive, useful or eco-friendly packaging influence the target customers. Subscribe to email updates from tutor2u Business Join s of fellow Business teachers and students all getting the tutor2u Business team's latest resources and support delivered fresh in their inbox every morning. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets. Advertising needs the others to target other potential customers and not the same over and over again.
Subscribe Thanks. Growth Stage — The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase.
Products, like people, have life cycles.
Product life cycle examples
Goals[ edit ] The goals of product life cycle management PLM are to reduce time to market, improve product quality, reduce prototyping costs, identify potential sales opportunities and revenue contributions, maintain and sustain operational serviceability, and reduce environmental impacts at end-of-life. The failure comes only after the investment of substantial money and time into research, development, and production. Adding new features: Adding value to the product to enhance its usability or to attract the attention of a wider customer base. You may also be interested in:. The process of strategizing ways to continuously support and maintain a product is called product life cycle management. Before entering into any market complete analysis is carried out by the industry for both external and internal factors including the laws and regulations, environment, economics, cultural values and market needs. As of , flat-screen TVs are in the mature phase, programming-on-demand is in the growth stage, DVDs are in decline, and the video cassette is extinct.
Product life cycle is the progression of an item through the four stages of its time on the market. The idea behind the PLC concept is that companies must continually innovate. Heightening interest: Many of the following things attract many customers who match certain profiles: Eco-friendly production processes, good work conditions, funding the efforts of non-profit organizations cancer cure, anti-war efforts, refugees, GLTBI, environment and animal protection, etc.
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