Major changes in business strategy are usually required during three stages of the life cycle. Which product life cycle strategies should be applied in each stage is crucial to know in order to manage the plc. Product life cycle consist of 5 important stages viz. While the product life cycle model is a very helpful tool for helping to understand current and potential market conditions, in order to develop appropriate marketing and competitive strategies, there are some limitations and concerns with the usage of the plc. A guide to new product development product life cycle. The life cycle of a product starts from the time it is introduced in the market and continues till the product is withdrawn.
Because each stage is different, it will require marketing strategies that are unique to that particular stage. 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. Group mebers ibrahim kamran product life cyle the course of a products sales and profits over its lifetime is called the product life cycle. Discuss the different stages of the product life cycle and how marketing objectives differ for each stage. Benefits of product life cycle management ims marketing. 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. Products require different marketing, financial, manufacturing, purchasing, and human resources strategies in each life cycle stages. However, not all products go through all stages and the length of a stage varies. Product lifecycle management plm is the succession of strategies by business management as a product goes through its life cycle. The product life cycle is a wellknown framework in marketing. A very simple explanation of the product life cycle theory. Product life cycle describes transition of a product from its development to decline. The concept of the product life cycle is today at about the stage that the copernican view of the universe was 300 years ago. The planning and marketing life cycle encyclopedia of life.
You can use various marketing strategies in each stage to try to prolong the life cycle of your products. Pdf new product development life cycle abdul haseeb. International marketing product lifecycle tutorialspoint. But there are many challenges and difficulties in innovation, design and introducing a new product to a market. All 4 stages of the product life cycle require a different.
Each of these situations presents the key moments in the development of a strategy for the future of the product. How to use the product lifecycle model smart insights. Every product in the market has a life and each goes through several cycles. The concept of the product life cycle basically describes the evolution of a product, as measured by its sales over time. Most alert and thoughtful senior marketing executives are by now familiar with the concept of the product life cycle. Products go through four distinct stages in the life cycle, each with its own unique marketing strategies. The product lifecycle plc is a wellknown marketing concept initially developed in. Life is a series of developments and changes, resulting in peaks, decline and eventually, demise. A short product life cycle is one of the hallmarks of a fad. Aug 30, 2019 product life cycle describes transition of a product from its development to decline. Product lifecycle management plm receives considerable. The product life cycle can be a useful tool in planning for the life of the product, but it has a number of limitations. According to s blog post, when introducing a new product to market, you. An explanation of the former model leads to an understanding of its perceived shortcomings, and the reason for the takeup.
George mason university, fairfax, va, usa keywords. However, using the plc concept for forecasting product performance or developing marketing strategies brings some. In the introduction phase, the business firm tries to fabricate product awareness plus create a market for the product. Sep 06, 20 the product life cycle plc is used to map the lifespan of a product. Such product strategies look at the various stages the product is in the life cycle and then come up with the appropriate strategies. Thus, these are the stages which every product passes through, and the company should plan its marketing strategy keeping in mind the life stage of a product. These are based on the characteristics of each plc stage. The product life cycle is an important concept in marketing. The product life cycle can focus a marketer on a defined set of products and competitors in the current marketbut miss broad trends or innovations in adjacent markets and products.
When used carefully, the plc concept can be a great help in developing goods marketing strategies for the different product life cycle stages. 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. Product life cycle and marketing management strategies. Product life cycle concentrates only the life cycle of a product beginning with its introduction into the market to the post marketing phase. The significance of product life cycle marketing essay. Life cycle of one product can be over in few months, and of another product. Product life cycle can be defined as the life cycle of the product. All of the information below is based on the product or service being genuinely new to its market could be available in other markets and based on the product.
Generally, the life cycle of a product has four clear stages, each with its own characteristics. Adenike adeniyi nikky, bhawna chhabra, valerie bringas 1. The four stages are shown in the table below, although decline can be avoided by reinventing elements of the product. 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. Engineering product life cycle model 1 introduction product lifecycle management plm receives considerable attention from a wide range of. The product life cycle stages can be used for describing how products and markets work. The product life cycle traditionally consists of four stages. The case of mobile phones article pdf available in ieee transactions on engineering management 512. The product life cycle plc starts with the products development and introduction, then moves toward withdrawal or eventual demise. Evaluating the performance of the product portfolio provides management with information to guide product strategies of new products, product modifications, and product.
Stages of the product life cycle principles of marketing. Different products have different properties so their life cycle also vary. Product branding as well as the quality level is launched and intellectual property protection like trademarks and patents are received. In a mature market, potentially entering the decline stage of the product life cycle, larger firms may be in a position to try and rethink the overall positioning of a product in order to try and broaden its market or to create new usage or opportunities for silence. Marketing management product life cycle tutorialspoint. It is a strategy tool that helps companies plan for new product development and refine existing products. The introduction stage of the product lifecycle this introduction stage relates to new products being launched on the market for the first time. A guide to new product development product life cycle management. What is the importance of product life cycle in operations. Challenges in the product life cycle principles of. There are generally four stages in the life of a product. 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. Depending on the position of the product in the cycle, it may limit its entry into the market. This is the case not only for living beings, but also for consumer products.
Product life cycle management plm is the succession of strategies by business management as a product goes through its life cycle. The conditions in which a product is sold advertising. 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. This, in turn, will help to solidify customer loyalty and lengthen a products growth stage and consequently its overall lifecycle. These four stages are the introduction stage, the growth stage, the maturity stage and the decline stage. The following graph illustrates the four stages of the plc.
Product life cycle is the timeline of demand for the product from its initial stage of introduction. Pdf the product life cycle theory and product line. All of the information below is based on the product or service being genuinely new to its market could be available in other markets and based on the product or service being genuinely good and valued by the market. This example shows some benefits of considering the product life cycle in marketing strategies but also some significant limitations. It is an essential tool for analyzing the prospective success or potential of a new product.
The product life cycle concept is derived from the fact that a given products volume and revenue follow a typical pattern of four phases cycle. In addition, hofer developed descriptive propositions for each stage of the. 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. Product life cycle an overview sciencedirect topics. Growth product category maturity style brand or model decline rejuvenation or termination 4. Criticisms of the product life cycle plc the marketing. Dec 06, 2017 the product life cycle is a wellknown framework in marketing. Most marketing executives are by now familiar with the concept of the product life cycle and product life cycle analysis. Product life cycle stages managing the product life cycle. Definition the stages through which the individual products develop over a period of time is known as product life cycle. Extending the product life cycle the marketing study guide. Analysis and applications issues there is tremendous ambivalence toward the product life cycle concept within marketing.
The product life cycle contains four distinct stages. Product life cycle stages and strategies marketing portfolio. Pdf impact of product life cycle stages on barriers to entry. The above diagram depicts a typical product life cycle. The product life cycle is the concept that a product goes through several stages in the course of its life. This article dwells on the four stages of a product life cycle the product life cycle. I initially recommend you to read the article on product life cycle. Product life cycle can be defined as the analysis of the complete life span of a product. The product can be found in various stages of development based on this cycle. The product life cycle plc is a series of phases that a product will go through in its lifetime in relation to the profits and sales that it will collect. Apr 18, 2016 at this juncture, product lifecycle marketing needs to ramp up its promotional activity and take advantage of production savings to offer consumers special pricing and introduce them to brand extensions.
Each stage is associated with changes in the product s marketing position. Benefits and limitations of product life cycle plc. It is not possible to predict a plc 100% accurately, but management can make assumptions and informed guesses. 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 this study focuses on the importance of barriers to entry in five industries and examines the. Usually, the firm will have tried to keep the product as long as possible in the maturity stage. On one hand, the concept has an enduring appeal because of the intuitive logic of the product birth growth o maturity decline sequence based on a.
The product life cycle is based upon the biological life cycle the plc concept can be applied to what are known as styles, fashions, and fads. It gains more and more customers as it grows and, eventually, the market stabilizes and the product. The product life cycle plc describes the stages of a product from launch to being discontinued. However, a series of processes are to be undertaken by the management even prior to the introduction of a product in the market. The concept is based on a simple biological analogy of stages over a product s life, which is. The product life cycle plc includes the stages the product goes through after development, from introduction to the end of the product. Characteristics of the product life cycle stages and. May 14, 2012 product life cycle a theoretical model which describes thestages a product goes through 3. A study on the product life cycle of samsung smartphones in.
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. Life cycle of one product can be over in few months, and of another product may last for many years. The product life cycle is an excellent tool which can be used by business managers, strategists and marketing managers to come up with product strategies. Awaking the customers from the new product and its benefits, in despite of advertising costs to gain the competition. The time period of product life cycle and the length of each stage varies from product to product. Let us now discuss the various stages of a product, starting from its innovation to its decline stage. Not all products follow a smooth and predictable growth path. After a period of development, the product is introduced or launched into the market. See discussions, stats, and author profiles for this publication at. The product life cycle contains five distinct stages. 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. Product life cycle and marketing management strategies ijert.
As a product moves through its life cycle, the marketing approach must be adapted. The product life cycle plc concept is a wellknown marketing strategy and planning tool. That means that for many new continue reading criticisms of the product life. Pdf marketing mix of product life cycle mmplc and business. 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. Pdf recently, product lifecycle management plm has become a. 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. Marketing strategy and the product life cycle bizfluent. 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. Possible stages of the product life cycle are shown in fig.
The product life cycle theory and product line management. The product life cycle can vary for different products and different product categories. Marketing strategies used in introduction stages include. There are essentially 4 stages in the modern product life cycle namely introduction, growth, maturity, decline. Marketing strategies of smes based on product life cycle a. The product life cycle is a marketing theory cycle or succession of strategies experienced by every product which begins with a product s introduction, sometimes referenced as research and development, followed by its sales growth, then maturity and finally market saturation and decline.
However, using the plc concept for forecasting product performance or developing marketing. Impact of the product life cycle on marketing strategy. Just as children go through different phases in life toddler, elementary school, adolescent, young adult, and so on, products and services also age and go through different stages. For the four stages introduction, growth, maturity and decline, we can identify specific product life cycle strategies. Products typically go through four stages during their lifetime. If the characteristics of the product life cycle stages and their marketing implications are understood properly, the product may have made it to the final stage in the plc.
Stage of the product life cycle, business strategy, and. Product life cycle theory comprises analysis of a product s life in the market from the time it has been launched to its withdrawal from the market. It describes the stages a product goes through from when it was first thought of until it finally is removed from the market. 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. Some products are tied to specific business cycles or have seasonal factors that impact growth. Product life cycle analysis matrix marketing group. A marketer looking for the next feature to add to a digital camera to extend the maturity phase could easily miss the impact that the smartphone would have on the.
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