Every product has a life cycle, which is similar, in some ways, to the cycle of life first, is the production stage, in which the product is manufactured, processed or harvested. Understanding the product life cycle (plc) is of critical importance to a firm launching a new product it helps a firm to manage the risk of launching a new product more effectively, whilst simultaneously maximising the sales and profits that could be achieved throughout the product's life cycle. The product life cycle is an important concept in marketing it describes the stages a product goes through from when it was first thought of until it finally is removed from the market not all products reach this final stage. Each product has its own limited life, however it shares the same aspect and we define the period that the product goes through as the “product life cycle” the product life cycle consist of four stages starting from introduction stage, growth stage, maturity stage and decline stage. The product life cycle a new product progresses through a sequence of stages from introduction to growth, maturity, and decline this sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.
The four primary elements of the international product life cycle theory are: the structure of the demand for the product, manufacturing, international competition and marketing strategy, and the marketing strategy of the company that invented or innovated the product. First and foremost, before proceeding into the product life cycle strategies, lets define what a product life cycle is according to griffin and ebert (2002), a product life cycle is a series of stages through which it passes during its profit -producing life. Stages in the product life cycle essay stages in the product life product life cycle marketing management d01 april 7, 2013 abstract in marketing, there is a tool that is very useful to marketing strategy development this tool is known as the product life cycle. Product life cycle is the process of managing the entire life cycle of a product from itsmaking, through design and manufacture to service and disposal it is the chain of strategies used by business management as it (product) goes through its life cycle.
Product life cycle hypothesis essay his intent was not to propose a biological analogy such as is understood by the theory of product life cycle as commonly understood by marketing theorists vernon’s hypothesis identifies four stages that the trade patterns go through. Product life cycle is a very important concept for marketer as it is directly connected with the marketing strategies for the product (avlonitis and papastathopoulou, 2006) in different plc stages, marketers should consider to apply different marketing strategies. The product life-cycle concept indicates as to what can be expected in the market for a new product at various stages ie, introduction, growth, maturity and decline thus, the concept of product life-cycle can be used as a forecasting tool.
The figure shows four life stages of every product, introduction, growth, maturity and decline according to vice president of marketing for bmw, jim mcdowell, the average product life cycle for a bmw (depending on the series) is around seven years. The product life cycle model the product life cycle (plc) has been a common phenomenon in both management and economic studies the plc theory stipulates that a firm that can easily forecast the change of the product from one stage to another can manage its sales revenue through adoption of appropriate marketing mix strategies. 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 products generally go through a life cycle with predictable sales and profits.
Product life cycle marketing management d01 april 7, 2013 abstract in marketing, there is a tool that is very useful to marketing strategy development this tool is known as the product life cycle the product life cycle goes through four stages before it is complete or starts over again. The international product life cycle (iplc) theory, developed and verified by economists to explain trade in a context of comparative advantage, describes the diffusion process of an innovation across national boundaries. Plc concept & use in marketing plc or product life cycle describes all the stages a new product will go through from the time it is introduced to the market until it is withdrawn 4 stages are: introduction growth maturity decline when a newly developed product is introduced to the market and gains awareness, consumers as it continues to grow, become consistent and mature further. The product life cycle the product life cycle the conditions a product is sold under changes over time the product life cycle refers to the succession of stages a product goes through. All products/services go through a life cycle of npi (new product introduction), growth, maturity and decline these various stages affect the marketing strategy and promotional efforts in week 3, you will incorporate a product strategy that addresses at least 3 areas of the product life cycle.
Strategic marketing plan - strategic marketing plan research papers discuss the part of business that deals with the overall business strategy, and lists actions based on corporate mission yves saint lauren - select three of the organization's fashion products and trace each product's life cycle marketing plan - marketing plan research outline provided by paper masters. The product life cycle (plc) is a vital component of the marketing plan monitoring products and services as they flow through this process helps marketing managers adjust their marketing strategies to keep products and services thriving for as long as possible. Product life cycle consists of different stages that a product or brand must occupy in its life there is a chance of missing one or more stage in product life cycle ie one product can be directly shifted from introduction stage to decline. Related documents: product life cycle stages essay boston consulting group and product life cycle essay compare and contrast the product life cycle and boston consulting group matrix as marketing tools.
The product life cycle, on the other hand, ties directly the stages in the product's existence of the market with the revenues it generates at that certain stage there are five recognized stages in a product's lifecycle: development, introduction, growth, maturity and decline. Product life cycle stages: the table shows the product life cycle stages and the different marketing characteristics that accompany and identify them the product life cycle is a well-known framework in marketing. The product life cycle concept is useful for monitoring sales results over time and comparing them to those of products having a similar life cycle and therefore helps marketing managers to plan future marketing strategies to deal with the challenges.