Product life cycle and marketing management strategies ijert. Which product life cycle strategies should be applied in each stage is crucial to know in order to manage the plc. Product lifecycle analysis is an invaluable tool for developing a robust product marketing strategy. This entire journey is called the product life cycle.
Newproduct development strategies product lifecycle. In theory, its a lot like the life cycle that people go through. Nov 29, 2018 the product life cycle plc describes the stages of a product from launch to being discontinued. Product life cycle ag decision maker iowa state extension. Each stage is associated with changes in the product s marketing position. Marketers call this process the product life cycle four stages that a product goes through over its life. The product life cycle stages can be used for describing how products and markets work. The product can be found in various stages of development based on this cycle. Each stage is different and requires marketing strategies unique to the stage. True, there were some toy robots available, but they were not nearly as sophisticated. Each of stages demands the unique or distinguished set of marketing strategies.
Products require different marketing, financial, manufacturing, purchasing, and human resources strategies in each life cycle stages. Mentioned segmentation methods will help in modeling right choices to make higher pricing opportunity or get more benefit by increasing volume of sell. It goes further than the scope of the product and is applied to lines of business or strategic business. For consumer products the product life cycle typically has five phases.
This is the case not only for living beings, but also for consumer products. Product life cycle is defined as, the cycle through which every product goes through from introduction to withdrawal or eventual demise. The sixphase comprehensive project life cycle model. For the four stages introduction, growth, maturity and decline, we can identify specific product life cycle strategies. Some companies use strategic planning and others follow the basic rules of the different life cycle phase that are analyzed later. The product life cycle is a marketing theory cycle or succession of strategies experienced by every product which begins with a products introduction, sometimes referenced as research and development, followed by its sales growth, then maturity and finally market saturation and decline. The product life cycle contains five distinct stages. The case of mobile phones article pdf available in ieee transactions on engineering management 512. A typical product life cycle can be illustrated from discovery to decline as follows william and mccarthy, 1997 figure 21. In this freebee printable, two butterfly posters 8. A study on the product life cycle of samsung smartphones in. Product life cycle and marketing strategies pdf northern. 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.
Product lifecycle management plm is the succession of strategies by business management as a product goes through its lifecycle. The product life cycle theory and product line management. A marketer should watch on its sales and market situations to identify the stage in which the product is passing through, and. New product pricing strategies when robosapien was introduced to the market, it had little direct competition in its product category.
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. Like your life is divided into stages same as life of a product is also divided. Product life cycle consists of different stages that a product or brand must occupy in its life. The main reason why users download apps is to increase their mobile devices. Product life cycle a product has a life of its own and goes through cycles. It is a strategy tool that helps companies plan for new product development and refine existing products. Concept and stages prof sneh harshinder sharma professor in hindi, pggc11 chandigarh keywords product life cycle, growth, maturity,decline abstract product lifecycle management plm is the succession of strategies used by business management as a product goes through its lifecycle. 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. A study on the product life cycle of samsung smartphones. The product lifecycle plc is a wellknown marketing concept initially. Product life cycle is the set of stages a product goes through during its lifetime. Every stage poses different opportunities and challenges to the marketer. The plc is a conceptual representation of product ageing process.
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. Product life cycle the process which a product passes through from birth development to death withdrawal. Product life cycle to introduce a new product, two methods may be used. Benefits and limitations of product life cycle plc benefits. So if a product is in growth stage, then naturally a lot of advertising and investments are needed to keep the product in the growth stage.
The initial stage of the product life cycle is all about building the demand for the product with the consumer, and establishing the market for the product. When used carefully, the plc concept can be a great help in developing goods marketing strategies for the different product life cycle stages. Newproduct development strategies product lifecycle strategies. It is easier to understand the complexity of the product life cycle in the context of a reallife example.
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. Marketing strategies used in introduction stages include. Meaning all products have certain length of life during which they pass through certain identifiable stages. Life is a series of developments and changes, resulting in peaks, decline and eventually, demise. Product life cycle product life cycle is the course of a products sales and profits over time.
If you continue browsing the site, you agree to the use of cookies on this website. The above diagram depicts a typical product life cycle. Each of these situations presents the key moments in the development of a strategy for the future of the product. Concept and stages prof sneh harshinder sharma professor in hindi, pggc11 chandigarh keywords product life cycle, growth, maturity,decline abstract product life cycle management plm is the succession of strategies used by business management as a product goes through its life cycle. Product passes through four stages of its life cycle. Origins and development of the product life cycle concept digital. The product lifecycle itself it divided into 4 stages of development. Product life cycle and marketing management strategies. These are based on the characteristics of each plc stage. Life cycle strategy is based on product life cycle thinking from the field of marketing. 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 and tactics for presenting a product.
Pdf the product life cycle theory and product line. Possible stages of the product life cycle are shown in fig. Marketing strategy and the product life cycle bizfluent. 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. 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 life of most products can be divided into five key stages. However, using the plc concept for forecasting product performance or developing marketing strategies brings some. The product life cycle is the concept that a product goes through several stages in the course of its life. Product life cycle the progression of a product through four stages.
Strategies the number 1 benefit of product life cycle is that it can help you to define the strategies which can be used based on the life cycle stage. Mp3s dvds cds cassettes lp records 2 the four stages of the plc. Product life cycle management a guide to new product development i. Descriptive model for the life of products in general. Newproduct development and product lifecycle strategies principles of marketing learning objectives. The understanding of a product s 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 product s success or failure. Depending on the position of the product in the cycle, it may limit its entry into the market.
Product life cycle introductory, growth, maturity, decline. This article is focusing on a number of the primary product life cycle management techniques that can be used to optimize a products revenues in respect to its effective positioning in a market during the introduction stage of the product life cycle. Newproduct development and product lifecycle strategies ppt. Stage of the product life cycle, business strategy, and. The product lifecycle plc describes the stages of a product from launch to being discontinued. Diversification strategies and promoting new uses for declining products are. If the project produces a new facility, such as a petrochemical processing. Challenges in the product life cycle principles of. Product life cycle plc strategies new product development. Product life cycle of apple iphone ebook super heuristics. Setting a high price for a new product to capitalize on high demand.
A guide to new product development product life cycle management. The journey starts from the day it is just an idea to the day it is finally removed from the market. There may of course be product improvements new projects to extend the product life. Product life cycle strategies quiz questions and answers 14 pdf download. The total sales of apples ipod across all models follow a classic product lifecycle curve see figure 1, below. Product life cycle product lifecycle strategic management. New product development and product life cycle strategies. Mentioned segmentation methods will help in modeling right choices to make higher pricing opportunity. It is important to see the marketing process in the context of the complete product life cycle, from basic research to genericization at the end of the product patent. A short product life cycle is one of the hallmarks of a fad. Jun 30, 2012 product life cycle consists of different stages that a product or brand must occupy in its life. The four stages are shown in the table below, although decline can be avoided by reinventing elements of the product.
Marketers and strategists can use this analysis to predict sales growth, associated customer and competitor behaviors, and, in turn, devise the appropriate product marketing strategy. Price and advertising effort over the product life cycle. Marketing researchers frequently use the product life cycle concept plc as. Well begin by discussing two strategies that are particularly applicable to products that are being newly introduced. As products move from life cycle phase to life cycle phase, the elements of the marketing mix used to promote them change during the introduction phase, there will most likely be heavy promotional and advertising activity designed to raise awareness of the new product, and to seek sales amongst early adopters adventurous consumers who like to own cuttingedge products. A guide to new product development product life cycle. Fixed cost product life cycle advertising effort boston consult group optimal advertising. Product lifecycle management plm is an integrated, informationdriven. Idc ranks it as the single most important segment of the plm idc marketscape. Newproduct development that focused on finding new ways to solve customer problems and create more customer satisfying experiences teambased newproduct development an approach to developing new products in which various company departments work closely together, overlapping the steps in the product development process to save time and. You can use various marketing strategies in each stage to try to prolong the life cycle of your products. The changes that may take place in the health or the fortune of a product during the period it is on the market. Nov 18, 2008 new product development and life cycle strategies slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.
Learning objectives after studying this chapter, you should be able to. Setting a low initial price to encourage higher distribution and exposure. Products go through four distinct stages in the life cycle, each with its own unique marketing strategies. The key emphasis will be on promoting the new product, as well as making production more costeffective and developing the right distribution channels to get the product to market. Each stage is associated with changes in the products marketing. Product life cycle stages managing the product life cycle. Life cycle strategy is based on product life cycle thinking from the. Usually, there are 4 different stages in the product life cycle. The product life cycle contains four distinct stages. How to use the product lifecycle model smart insights. Apr 17, 2019 strategies the number 1 benefit of product life cycle is that it can help you to define the strategies which can be used based on the life cycle stage. 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. Explain how companies find and develop newproduct ideas list and define the steps in the newproduct development process and the major considerations in managing this process describe the.
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. Product life cycle plc strategies free download as powerpoint presentation. Newproduct development and lifecycle strategies slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. A companys positioning and differentiation strategy must change as the product, market and competitors change over the product life cycleplc. There is a chance of missing one or more stage in product life cycle i.
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