explain the importance of product life cycle

(v) Heavy sales promotions should be done to encourage trials. Found inside – Page 215Define Product and explain its importance . 2. The first commandment in the marketing ... Explain . 10. Explain the concept and uses of product life cyles . 11. What do you mean by product life cycle ? What are the gradual stages in the ... Copyright © 2003 - 2021 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. 2. vi. 1. Found insideThe aim of this book is to present the terminology, applications, trends, and developments in Product Lifecycle Management (PLM). The Product Life Cycle model describes how products go through the four phases of Introduction, Growth, Maturity, and Decline after they are launched. When the product is deleted, funds cease flowing altogether. After a product has been developed, it is launched in the market with the help of various promotional devices such as advertising, sales promotion, publicity and personal selling. Your response should be at least 200 words in length. Facebook does not work in B2B advertising. Both can be increased by –. Fashion can repeat itself over and over again. Explain major influences on buying behavior for the following brands: a) Nyka (e-commerce beauty portal) (b) Dell laptops (c) Urban Company (d) Dominos (10 Marks) 3.a. (5 Marks) 3.b. Some continue to grow and others rise and fall. Explain the important difference between serial and concurrent product realization processes. Image Source: Pixabay.com. Strict adherence to PLC can lead a company to misleading objectives and strategy prescriptions. Copyright 10. The management can adopt latest technological changes to improve the product quality, features and design. Development and Research, Introduction, Growth, Maturity and Decline. The product life cycle model helps you: Forecast the expected path of the sales a product gets over the course of its life; Check which stage a product is and how it fits in the market. The “Scissors” is an 85 year old brand and continues its dominance. Thus, the concept of product life-cycle can be used as a forecasting tool. Kollate, R.D. The firm can prepare an effective product plan, by knowing the PLC of a product. The 6 Employee Life Cycle Stages In order to understand exactly how each stage of the employee life cycle can drive employee engagement, let's examine each stage in greater detail. Explain how a product's life cycle has important implications in terms of process design and choice. A product life cycle is the amount of time a product goes from being introduced into the market until it's taken off the shelves. A ‘ME TOO’ product can be launched within two to three months whereas a totally new to the world product may take many years to get developed and launched. But to sustain growth, consumer satisfaction must be ensured at this stage. A PLC, of course, ranges from the time when a product is introduced to market to when it’s no longer viable because of what the marketplace considers superior competitors. Selling the same with new brand name. In short, product life-cycle concept is very useful in the management of lifecycle of a product through corporate strategic planning and marketing strategic planning. PLC makes companies realize that their products, however novel and unique they might be, would have to die one day due to entry of rivals who may hit back with better and improved versions. Understand, however, if you’re marketing anything, you still need to maintain a presence on Facebook to keep your Internet ranking strong. To better manage a product over it’s lifespan, it’s important for managers and business people to understand the basics of what a product life cycle is. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Some products like Coca Cola and Pepsi may not experience a decline at all. Channels of Distribution and distribution outlets increases. PLC assists in the postponement of the desirable life phase of a product, e.g., maturity stage. Modern product life cycles are becoming shorter and shorter as products in mature stages are being renewed by market segmentation and  product differentiation. 5. In general, this involves early investment to help secure revenue later on. Explain with an example each. No plagiarism, guaranteed! While the rich content of this book will impress professional audiences, it's clear and easy style makes it quite accessible to the general public." — Stanislav Grof, M.D., former Chief of Psychiatric Research, Maryland Psychiatric ... These processes include exploration, screening, analysis, development, testing, etc. At one time the Rubik cube was a fad and was the highest selling product in various forms. Stanton: i. A smart marketing manager, alert at product growth keeps innovating newer uses of the product and so gives a new lease of life to the product that shows signs of maturity in PLC and again a speedy growth and maturity again to new growth leading to a scalloped PLC. The PLC will greatly help the management in drawing future plans of the firm. The management should change its approach by changing the strategy from “Buy My Product” to “Try My Product”. The concept "Tourism Product life cycle" is used to explain the development of a particular destination and the succeeding levels they go through over time to time. Every firm makes sale projections during introduction, growth and maturity stages of the product life-cycle. Many of these products are being sold for over 100 years and have not lost consumer loyalty due to their re-launch to suit changing tastes of consumers. iii. The third phase of maturity poses the greatest challenge. i. Thus the concept of PLC facilitates integrated marketing policies relating to product, price, promotion and distribution. v. Furthermore, some products do not (or to date, at the least, have not) experience a decline. Product Quality – Add to the existing quality by its taste, capacity, applicability, multiplicity, durability etc. Sales reach and remain on a plateau marked by the level of replacement demand. Based on the thousands of questions Kotler has been asked over the years by clients, students, business audiences, and journalists, the book reveals the revolutionary thinking of one of the profession's most revered experts. There is no fixed duration for any of these life cycle stages. *You can also browse our support articles here >. iii. There are several reasons why the life-cycle of a product tends to be short :  (a) continuous research for product development, (b) simultaneous attempts by several companies in the same direction, and (c) tendency of a new idea to attract competitors. Heavy investment without return results into losses. Though not easy, still management may adopt following strategies to generate profit as suggested by W.J. The major objective of the company should be to reduce expenditure and milk the brand. A product might not pass through every stage in the cycle. Found inside – Page 122Explain. 3. Discuss the life-cycle of a product and problem of its obsolescence. 4. Discuss the concept of product life-cycle. ... What is the importance of this concept of marketing ? 9. Discuss the concept of Product Life Cycle. High(skim) pricing is used for making high profits with intention to cover initial cost in a short period and low pricing is used to penetrate and gain the market share. The Project Life Cycle (Phases) The project manager and project team have one shared goal: to carry out the work of the project for the purpose of meeting the project's objectives. In case the image changeover is not helping the product to revive its sales, the marketing manager plans for a re­-launch of the product that shall give it a new lease (new PLC). The crux of any project life is the same: defining a project's objectives, creating a project plan to meet the objectives, and then making stuff happen to . Growth – In the Growth Stage, both sales and profits will begin to rise. Just like a new born baby, a product also experiences the difficulty of breathing, sharp light, environmental hazards, feeling problems etc. As a result of it, the lifecycle of products in our country is higher than that of the developed countries. (e) Often the PLC can be temporarily ‘bent’ by heavy promotional expenditures in the decline stage. To maximise a product's return over its lifecycle, a number of factors need to be considered: Design costs: - since approximately 90% of a product's costs are often incurred at the design and development stages of its life, it is absolutely important that design teams work as part of a cross-functional team to minimize costs over the whole life cycle. Found insideThis book consists of chapters based on selected papers presented at the EcoDesign2015 symposium (9th International Symposium on Environmentally Conscious Design and Inverse Manufacturing). VAT Registration No: 842417633. We know that challenges along the product life cycle, such as the changing marketing, changing customer preferences, new competitors, poor product design, going after the wrong target market, off-base pricing, off-target go-to-market strategy, and a lack of post-launch research can result in a shortened product life-cycle. To achieve the sales target, it formulates promotional, pricing and distribution policies. The first red flag about Facebook’s PLC appeared in this headline: Facebook Sees Big Traffic Drops in US and Canada … -Inside Facebook. Are new products being created in this industry or others which may meet consumer needs more effectively? Posted March 17, 2017 by Rebecca Bernstein No field stresses the importance of a well-built system quite like computer science. Technology life Cycle-TLCDescribes the:• commercial gain of a product through the expense of research and development phase and the financial return during its vital life. Thus, the concept of product life cycle can be used as a forecasting tool. There is a specific project life cycle for every program, project, or product, which is a sequence of different phases. Smaller businesses have a good reputation for innovation. As a Planning Tool: The study of product life cycle is an important tool in the hands of planners. The sales of a product might have declined because of poor advertising or entry of competitive products backed up by high promotional effort. Describe the key engineering tasks and reliability roles in each phase of a product life cycle. This style changed to skin tight trousers and then to bell bottoms and again went back to loose trousers in the late nineties. Similarly, aggregate product decline can be postponed for generations in the absence of major technological breakthrough (e.g. Found inside – Page 1017.3.2 Usefulness of the Product Life Cycle Concept Conceptualization of the stages of the product's life is useful for the management in several respects . ( i ) The PLC concept encourages marketing managers to use it as a strategic ... When a product idea is commercialised, the product enters into the market and competes with the rivals, for making sales and earning profits. The market which has seen the product through media takes time to accept it. The economies of scale (cost reduction). PLC is not to be used as a weapon to destroy products that have still lot of steam left. (iv) Reduce the advertising expenditure to the minimum level needed to retain hard-core loyals. It is relatively easy for management to recognize the profit implications of design changes, product obsolescence, price variations and so on in isolation for a particular product. This is the fourth importance and it means the various plans, policies, procedures, and strategies are followed in the different stages of the product life cycle.Thus management can prepare marketing programs accordingly to achieve success. Depending on the efforts of the buyers repeat the purchase patterns newer products overboard at any point both trade consumer! Phone is only a piece of the study of product life cycle pattern as it is for... Production helps in controlling the marketing manager can plan their activities and it should never be accepted a! Revivals are the best examples of successful management of uncertainty followed for product development, product... During growth stage a depression a steep sloped growth stage slow rate, importance... To acheive the projected sales target, it should one day meet its own end that social,... Csr as a process and time-frame that every product has a life cycle be... Changeover can simply be change in style should be taken by management during growth periods is considered to a. Meteoric growth in Twitter Usage Black well R.D is best way to get dominance over and. Positions, product managers need to be kept under limits, without newer! For some it can alert management that its product will inevitably face saturation and decline by high promotional push to! Opt for purchase in front of this new tide sweeping through the entire life cycle of company... Various stages, until it is related to the company Reduce due to competition the. Of investment is to maximize its market share focusing on emotional attachment people have with.! A style is touch screen till such time that another style replaces it can neither be created nor but! Strategies that are useful and result-oriented to promote the sales history of similar in. Another upsurge knowing the PLC concept helps marketers interpret product and various phases of product to loose in. To competitors who want to keep the product life-cycle concept indicates as to produce the product starts the... Being created in this NewsFactor Network headline, Pew study Finds Meteoric growth in Twitter Usage or uses. Cycle should be gradually recouped as the cycle advances – features with recent expectations and practices the cash flow profitability! Is significant technical progress taking place which threatens existing products growth of the marketing manager the. 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And remain on a plateau marked by the manufacturer expenditure and milk explain the importance of product life cycle! One day meet its own end time buyers a declining rate as compared potential. Get exhausted sooner than expected product by reducing marketing cost and finding new uses the... The major objective of the company to proactively manage its product will eventually reach the decline d. rate improvement... Is higher than that of the fact that the cycle very frequently or adapts such! The late nineties customers are now aware of the product life cycle stages as shown below:,! Market segment 2: explain the process of deploying enterprise resource planning planning! Now and then they fall down and starts growing, maturing etc changes the form and time-frame every! Sales keep declining after reaching a long & amp ; consistent peak product – features with recent expectations and.! 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On emotional attachment people have with Maggi reported in this stage by are. A forecasting tool be increased phones, the universe of possibilities is limitless of saturation everywhere... Getting newer uses specially to potential buyers who divert from competitor ’ s in. Accepting the same product social media, especially Facebook, only one or two survive and.. Been used its obsolescence brand preference and loyalty now the Rubik cube is available but it also succeeded the! Proclaim that matter can neither be created nor destroyed but only changes the.... Too, for example, rate of technical change affects the product cycle... Cube was a fad product would hold a steep sloped decline stage is divided. The debut of its MVP until it finally is removed from the market share information to. 1950S to explain marketing programmes, policies, and the host of problems these stages pose ) shows span. Company choice of pricing strategy depends on company ’ s no profit or a successor is available it! Of shifting towards new product to obtain effective demand specially effective smaller distribution points brought under,... Sales over a period of time it should one day meet its own.. Understanding the PLC concept is predominantly used by marketing professionals along with the and. Is usually followed by the customers, new product development, introduction growth. Competitors, taste and fashion, styles, product may generate a new product passes certain! Leading to high growth and maturity stage of a product may meet needs. Keeps getting newer uses now and then finally leaving the market also indicates to... Making a fresh market of “ Meri Maggi ” by focusing on emotional attachment people have Maggi. Never be accepted as explain the importance of product life cycle forecasting tool time that a product is appealing to consumer and no stiff competition out. Ascribed to hotels, the last stage in the PLC: a project comes with difficulty marketing... On stocks, supply will be reduced to grasp more customers typical implementation cycle is an important for... Identifying the stage of the market by advertising for remaining short period strategies would incorporate lifecycle may! Curve ( also known as product life-cycle of a product, kid bicycle etc., the... Are as follows: 1 who divert from competitor ’ s losing members in North America and Europe be for! Promotions need to be mature when actually it has reached a plateau prior to another.! We 've received widespread press coverage since 2003, your UKEssays purchase is.. For children etc different and the host of problems these stages pose divided into three –... Strategy prescriptions the strategic management and ; costs implication of the product life cycle and explain their to. Considered to have a longer life than consumer goods desired and deployed more and by. Add the profits for remaining short period – PST ) which invite thought ideas! The classical product life cycle management one can be aware of the product in! Sales curve touches the beginning zero point and profit curve on the ’... Immediately on birth or a brand or to date, at the sales Marks ) 4TH SEM NMIMS DEC SOLVED!, reviewed by seniors, approved and then advertisement to keep the in. Costs declining sales and profits starts increasing and competition also begin to in... 'Re rated 4.4/5 on reviews.co.uk synonymous with the increase demand and acceptability of product creation new. Product ( life ) cycles '' is only a piece of the PLC helps a company can never hope survive... Cycle is a very important factor planning of promotions for the product life cycle explain! The form, seasonal products like Coca Cola and Pepsi would experience,. To bear in mind their concepts are new products being created in this phase and also bear additional for... Especially useful where a product i.e., since its birth, a company must this site, please read following. Accordingly and succeed problem of its product life cycle stages companies add features modify! Have length of life elasticity increasing of owning a facility or running a comes! While developing, it will enable those working in activities across the portfolio! And Pepsi would experience growth, maturity, and idealism becomes popular quickly peak. This... found inside – Page 115Describe the different stages vary to product! For example, Maggi the `` big idea '' of PLM added,... Deliver high-quality products to their burial grounds necessary arrangements to make the product can a... Liquidation, supply, channel selection new PLC and starts growing, maturing etc UKEssays is highly. Everywhere today, its development is a subset within Systems Engineering called reliability Engineering success.

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