Definition Of A Product Life Cycle Marketing Essay

comment Of A crossway keep Cycle merchandising EssayA product is anything which is capable of satisfying customers needs. harvest-feast includes both physical or tangible products (mobile,car, type writer, computer, bike) and intangible products or services (health care, banking, insurance).Definition of a Product Life Cycledefine what a product life cycle isIt is the period of time over which an item is developed, brought to market and at last removed from the market.ORThe microscope stages through which a product develops over time is c anyed Product Life Cycle (PLC).ORThe product life cycle is selling CONCEPT that describes the way the revenues from the sale of a product behave over time. legs of a Product Life CycleThe product life cycle is disjointed down into quartette phasesIntroductionGrowthMaturityDeclineThe Product Life Cycle (PLC) Curveplc, product life cycle curveFor all products, the life cycle is drawn is the form of a mount shaped curve. The starting of the cu rve marks the introduction stage the slope indicates growth stage top of the curve signifies due date and the graph ends in the filiation stage.Theory of PLC Biological Life Cycle Versus Product Life CycleThe concept of Product Life Cycle is based on biological life cycle. For instance, when a seed is planted (introduction) it begins to pullulate (growth) it shoot bulge flowers and leaves (maturity) and after a outlined period of time, it starts to shrink and eventually die out (decline).Human beings also pass through the same phases of introduction, growth, maturity and decline in their lives. The same guess applies to a product. When a modernistic product is launched in the market, it starts gaining customers then it stabilizes and becomes mature then after any(prenominal) time, it is taken over by the introduction of get around and superior competitors therefore, it is withdrawn or harvested from the market.Benefits of Using a Product Life Cycle for RevenueMARKETING manage rs consider product life cycle as an important measure of sales revenues. As you can see it from the figure, the slope of the curve denotes the sales of a particular product. The more the slope then more the sales. When a product is introduced in the market, the sales are negligible.Due to merchandising promotion efforts, the demand of product starts to rise and as a result some revenue is generated. When more and more customers begin to buy the product, the revenues of the product reaches to maximum this stage is called maturity.A product can stay in maturity for several(prenominal) weeks, months or years depending on the external and internal market conditions and resources.Finally, when a product better in features and functions is launched by a competitor into the market, the sales starts to decline in some cases, companies have to disengage their products or services.Product Life Cycle Management (Marketing)/ PLCMProduct life cycle management (or PLCM) is the succession of st rategies apply by business management as a product goes through its developmental life cycle. The conditions involving the promotion and sales of a product, involving market saturation and advertisement vary over time and must be managed as it moves through the different stages of succession.What is Marketing Mix?A marketing mix is a pre-planned mixture of all those controllable elements which are involved in the planning of a products marketing. they include the following 4PsProduct (often substituted by Presentation)PricePlacePromotionThese four elements are adjusted until the correct combination is reached befitting the requirements of a products customers, while generating optimum income.How to Create a Product Life CycleFirst StageIntroducing the Product Brand BuildingFor the product life cycle to begin, the product must be launched in the market. This is done after signal market is identify and ensured that the need for your product or service exists.At this stage, sales will be very low because customers are not really aware about the product and its benefits.Generating Demand Promotion, announce, MarketingThe cost of advertising and initial distribution is very high as companies intend to create awareness of the product and target early adopters. The goal is to build market and generate demand.Stage 1 Marketing Mix ImplicationsYou need to have a fair idea of marketing mix implications for each stage.ProductProducts are very less in numberPriceSome companies keep the price to high so as to cover their costs whereas others tend to keep it low so as to attract more and more early adopters. scatteringInitially, the distribution is done selectivelyPromotionCreation of awareness is the only goal of the promotionGrowthWatch how the product is establishing market and making profit in comparison to the competitors. assert the focus on the promotion efforts. Notice how slowly or rapidly the product is gaining customers and generating profits.More and more retailers will be interested in carrying your product. commend the goal of growth phase is to increase sales and gain customer preference.Second StageStage 2 Marketing Mix ImplicationsProduct benefit of the product quality.PriceIf the demand of the product is high, price is maintained at high level whereas if you want to target additional customer segments, reduce the price.DistributionTo intensify distribution, discounts are offered to the retailers.PromotionImproved the promotional efforts.MaturityYou will observe that your product has met market saturation. Eventually, there will be a attach increase in sales and it will become a challenge for the marketing and sales team to maintain the market share as new competitors would be penetrating into the market.Increase promotional efforts and offer more discount to the retailers in order that they give your more shelf space than competitors. The goal of maturity stage is to extend product life cycle while maintaining market share.T hird StageStage 3 Marketing Mix ImplicationsProductProduct is differentiated from those of competitorsPriceMaximum possible reduction in prices to be madeDistributionRetain existing distributors by offering discounts as hygienic as searching for more channels of distributionPromotionIntensive promotion efforts in order to establish brand loyalityDeclineCarry out amarketing analysis or a survey to find out how customers perceive the product currently. If the interest and demand is low, think of ways to take the product covering fire to profit making position.Possible ways could be the creation of new target segment and making modifications in the product. The goal of decline stage is every to maintain the product or discontinue it.Fourth StageStage 4 Marketing Mix ImplicationsProductFewer products left in the product line.PriceIf the product is to be maintained, the prices are retained. In case of termination, prices are reduced to liquidate inventory.DistributionChannels are phase d out gradually.PromotionAdvertising expenditure reaches a minimum levelExamples of Product Life Cycle (PLC)Set out below are some suggested examples of products that are currently at different stages of the product life-cycleINTRODUCTIONGROWTHMATURITYDECLINEThird generation mobile phonesPortable DVD PlayersPersonal ComputersTypewritersE-conferencingEmailFaxesHandwritten earnAll-in-one racing skin-suitsBreathable synthetic fabricsCotton t-shirtsShell Suitsiris-based personal identity cardsSmart cardsCredit cardsCheque booksPopular Cases of Product Life CyclesPepsi Product Life Cycle DevelopmentCoca Cola Product Life Cycle DevelopmentKellogs Product Life Cycle Developmentorchard apple tree Product Life Cycle DevelopmentNokia Product Life Cycle Development