The main purpose of this thesis is to analysis different kinds of strategies that companies can or should observe for managing a profitable product life cycle. The goals in respect of strategy, competition, product, price, promotion and distribution will be different for the different stages of the product life cycle. Each of stages demands the unique or distinguished set of marketing strategies. Which stage of the plc the product is in difficult to forecast the sales level, the length of each stage, and shape of the plc strategy is both a cause and a result of the product s life cycle the plc concept can help in developing good marketing strategies for different stages of the product life cycle, however some problems can arise. Newproduct development strategies product lifecycle. Every stage poses different opportunities and challenges to the marketer. The key point of the division of the products life into stages is that different strategies. Newproduct development and product lifecycle strategies.
The four product life cycle stages alvernia university online. Products generally go through a life cycle with predictable sales and profits. Explain product life cycle, and marketing strategies adopted. Smartphones are a dominant factor in the product life cycle of digital cameras, ipods, and a number of other products. Profits rise and fall at different stages of the product life cycle. Each stage is associated with changes in the product s marketing position. The product life cycle plc describes the stages of a product from launch to being discontinued. When used carefully, the plc concept can be a great help in developing goods marketing strategies for the different product life cycle stages.
You can use various marketing strategies in each stage to try to prolong the life cycle of your products. Product passes through four stages of its life cycle. Finally, the study shows that the value of marketing strategies and when products move through their life cycle process, different. As the above figure shows, there are four stages in a typical product life cycle. Product life cycleproduct life cycle is the course of a products sales and profits over duct life cycleplc deals with the life of a product in the market with respect to business or commercial. Philip kotler the concept of life cycle of a product as from its birth to death, a product exists in different stages and in different competitive environment. The product life cycle proposes that a product goes through a life cycle like humans go through different stages of life.
Product life cycle explained 4 stages of product life cycle. Marketing strategy and the product life cycle bizfluent. Choosing the right product life cycle strategies is crucial for the companys success in the longterm. As the product moves through different stages of its life cycle, sales volume and profitability change from stage to stage as shown in fig. During startup you need to develop your marketing strategies to grow sales. Like a human being, a product has also a certain length of life. Product life cycle should be studied with reference to the broad picture of demandtechnology life cycle. Products go through four distinct stages in the life cycle, each with its own unique marketing strategies. May 11, 2019 the product life cycle discusses the stages which a product has to go through since the day of its birth to the day it is taken away from the market. The product life cycle plc starts with the product s development and introduction, then moves toward withdrawal or eventual demise.
In the following, all characteristics of the four product life cycle stages discussed are listed. Pdf impact of product life cycle stages on barriers to entry. Each stage represents a different set of uncontrollable. Marketers use the product life cycle to follow this progression and identify strategies to influence it. Products require different marketing, financial, manufacturing, purchasing, and human resources strategies in each life cycle stages. Just as the product life cycle has various stages, new product development is also broken down into a number of specific phases. Product life cycles are the most common means for describing the evolution of markets and products. Whether youre looking through your parents old vhs tapes or shopping for a new smartphone, youre participating in and experiencing different stages of the product life cycle, or plc. New product development stages product life cycle stages. The product life cycle concept is also a useful framework for describing the typical evolution of marketing strategy over the product life cycle. Usually, there are 4 different stages in the product life cycle. The product life cycle contains four distinct stages. Product life cycle stages managing the product life cycle. The additional challenge is recognizing that the different stages of your business lifecycle.
How to use the product lifecycle model smart insights. For the four stages introduction, growth, maturity and decline, we can identify specific product life cycle strategies. The management emphasis on the marketing mix elements also undergoes substantial changes from stage to stage. Life is a series of developments and changes, resulting in peaks, decline and eventually, demise. The four stages of a products lifecycle introduction, growth, maturity, and decline each bring with them a different set of challenges. There are four clearly defined stages in the product life cycle, and each stage has unique characteristics that generate different responses or stimuli for business. Product life cycle shivani bhambri1 abstract product life cycle plc is the cycle through which every product goes through from introduction to withdrawal or eventual demise. All 4 stages of the product life cycle require a different market research strategy, according to blog.
The process of this thesis will start by a brief definition of product life cycle and used strategies in each stage of the cycling. For each, product life cycle strategies with regard to product, price, distribution, advertising and sales promotion are identified. In business terms, the product lifecycle, in a marketing context, is all the stages of a product s life span that are related to its promotion and sales. It has implications for the marketing strategy of a firm as it seeks to introduce, grow and maintain market share. When a product is launched, it requires a significant investment from a business. 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. So product life cycle will not be only the routine stages which companies should go through but should also take precedence of profit gaining among market competition. Before a product can embark on its journey through the four product life cycle stages, it has to be developed. 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.
The product life cycle plc refers to the different stages a product goes through from introduction to withdrawal. The journey starts from the day it is just an idea to the day it is finally removed from the market. Marketing strategies for the four different stages of plc. 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 and tactics for presenting a product. This example shows some benefits of considering the product life cycle in marketing strategies but also some significant limitations.
The product life cycle plc starts with the products development and introduction, then moves toward withdrawal or eventual demise. Stages include introduction, growth, maturity and decline and are explained in detail here. I also share with you an ebook about how you can use different marketing strategies at different stages of the product life cycle. Sep 29, 20 it provide a useful framework for developing effective marketing strategies in different stages of the product life cycle. Jul 09, 2018 in this article, i share with you about the product life cycle of apple iphone. This basic life cycle as presented by jones had five stages. In different plc stages, marketers should consider to apply different marketing strategies. Which product life cycle strategies should be applied in each stage is crucial to know in order to manage the plc properly. Nov 29, 2018 learn how you can use the product life cycle model to project changes in the perception and use of your products. Key strategies to consider throughout the different product life cycle stages, and how to make the most of each stage. The paper presents an analysis of two popular mobile games plc related strategies and corresponding marketing mix modifications in different stages of plc. These are based on the characteristics of each plc stage.
This will help in taking sound marketing decisions at different stages of the product life cycle. This is the case not only for living beings, but also for consumer products. 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 products. Impact of product life cycle stages on barriers to entry article pdf available in journal of strategic marketing 154. Mar 04, 2019 whether youre looking through your parents old vhs tapes or shopping for a new smartphone, youre participating in and experiencing different stages of the product life cycle, or plc. That will cover 23 modules of business and digital marketing like. Second, the competitive position of a business is represented across a matrix of life cycle stages and. Product life cycle different stages of product life in.
The process to develop a life cycle strategy first identifies the life cycle position of a business as a. The product life cycle begins once a product is introduced into the market and it ends when a product is finally phased out, abandoned or becomes obsolete. The product life cycle stages can be used for describing how products and markets work. A marketer should watch on its sales and market situations to identify the stage in which the product is passing through, and. In the second part of this chapter, we will see that products pass through several lifecycle stages and that each stage poses new challenges requiring different. The product life cycle is the concept that a product goes through several stages in the course of its life.
Product life cycle and marketing management strategies. Concept and stages prof sneh harshinder sharma professor in hindi, pggc11 chandigarh keywords product life cycle, growth, maturity,decline abstract product lifecycle management plm is the succession of strategies used by business management as a product goes through its lifecycle. Product life cycle 4 stages of products life feedough. They involved strategies that tried to expand sales via four different routes. Product life cycle and marketing management strategies ijert.
Apr 18, 2016 the limited life of a product isnt something that can ordinarily be changed, which is why marketing, customized to the lifecycle, is imperative. All 4 stages of the product life cycle require a different. There are 4 different product life cycle stages which are known as introduction, growth, maturity and decline. It is a strategy tool that helps companies plan for new product development and refine existing products. Life cycle strategy is based on product life cycle thinking from the field of marketing. Newproduct development strategies product lifecycle strategies. Jun 25, 2018 product life cycle is the set of stages a product goes through during its lifetime. The concept of the product life cycle is today at about the stage that the copernican. The product life cycle refers to a likely pathway a product may take. A guide to new product development product life cycle. Mar 07, 2012 products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life cycle stages. It is a readymade or expert prescription regarding what a marketing manager should do in different stages of the plc.
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