Stages of a Product Life Cycle MarketingWit Staff Nov 18, The product life cycle theory has become popular with economists and marketers alike, as it holds ground in both these fields.
For example, a seed is planted introduction ; it begins to sprout growth ; it shoots out leaves and puts down roots as it becomes an adult maturity ; after a long period as an adult the plant begins to shrink and die out decline.
At this point there is a downturn in the market. For example more innovative products are introduced or consumer tastes have changed. There is intense price-cutting and many more products are withdrawn from the market. Profits can be improved by reducing marketing spend and cost cutting.
Problems with Product Life Cycle. In reality very few products follow such a prescriptive cycle.
The length of each stage varies enormously. The decisions of marketers can change the stage, for example from maturity to decline by price-cutting. Not all products go through each stage. Some go from introduction to decline. It is not easy to tell which stage the product is in.
Remember that PLC is like all other tools. Use it to inform your gut feeling. After a period of development it is introduced or launched into the market; it gains more and more customers as it grows; eventually the market stabilises and the product becomes mature; then after a period of time the product is overtaken by development and the introduction of superior competitors, it goes into decline and is eventually withdrawn.
However, most products fail in the introduction phase. Others have very cyclical maturity phases where declines see the product promoted to regain customers. Strategies for the differing stages of the Product Life Cycle.
The need for immediate profit is not a pressure. The product is promoted to create awareness.
If the product has no or few competitors, a skimming price strategy is employed. Limited numbers of product are available in few channels of distribution. Competitors are attracted into the market with very similar offerings. Products become more profitable and companies form alliances, joint ventures and take each other over.
Advertising spend is high and focuses upon building brand. Market share tends to stabilise.The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline).
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, saturation) changes over time and must be managed as it moves through its succession of stages. Product lifecycle management (PLM) should be distinguished from 'product life-cycle management (marketing)' (PLCM).
PLM describes the engineering aspect of a product, from managing descriptions and properties of a product through its development and useful life; whereas, PLCM refers to the commercial management of life of a product in .
The product life cycle theory was propounded by economist Raymond Vernon in With the help of this theory, he sought to explain the various stages that a product .
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 progression of a product from its launch into a market, its growth and popularity and eventual decline and removal from the same market is known as the product life cycle. It can be broken up into 4 basic stages: Introduction – Following product development, the marketing team develops a.