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. In the introduction stage, for example, your marketing efforts will likely be focused on building brand and product awareness, as well as establishing and connecting with a. Benefits and limitations of product life cycle plc benefits. The impact on the marketing mix and strategy is as follows. The case of mobile phones article pdf available in ieee transactions on engineering management 512. Product lifecycle management plm is the succession of strategies by business management as a product goes through its lifecycle. Before i tell you about the product life cycle of an apple iphone, let me tell you a bit about what is a product. 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. Importance of product life cycle in marketing subjectquery. The duration of each product s life cycle stage is unpredictable, making it difficult to detect when maturity or decline has begun. Mar 07, 2012 products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life cycle stages. Marketing strategies in the decline stage of product life cycle the major objective of the firm that continues with the product in the decline stage of product life cycle is to survive and make some profit out of the product.
This is the case not only for living beings, but also for consumer products. Each of stages demands the unique or distinguished set of marketing strategies. The paper further takes a look at various concepts of scholars on marketing management strategies. Every product goes through the various life cycle phases of introduction. Products typically go through four stages during their lifetime. The product life cycle theory and product line management. Marketing strategy and the product life cycle bizfluent. 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. Even a handful of uniquely cosmopolitan and uptodate corporate presidents.
Every stage poses different opportunities and challenges to the marketer. Newproduct development strategies product lifecycle strategies. The product life cycle is the concept that a product goes through several stages in the course of its life. It also is useful for monitoring sales results over time and comparing them to those of products having a similar life cycle. What marketing strategies are appropriate at each product life cycle stage. A companys positioning and differentiation strategies must change as the product, market and competitors change over the product life cycle. Each stage is different and requires marketing strategies unique to. Product life cycle shows how sales of a product change overtime product lifecycle marketing strategies. Product life cycles and the boston matrix product life cycle plc. Each of these situations presents the key moments in the development of a strategy for the future of the product. 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. Stages of the product life cycle principles of marketing. Product life cycle shows how sales of a product change overtime product life cycle marketing strategies.
Iamabsolutelyconvincedthattheproductlifecyclehas thepotentialtoplayacentral,ifnotthecentralroleinour questtodevelopasolidtheorybasedfoundationformarketing practice. Depending on the position of the product in the cycle, it may limit its entry into the market. Products require different marketing, financial, manufacturing, purchasing, and human resources strategies in each life cycle stages. Descriptive model for the life of products in general. Marketers use the product life cycle to follow this progression and identify strategies to influence it. The product life cycle contains four distinct stages. Product life cycle marketing strategies wells fargo. Benefits and limitations of product life cycle plc. Each product may have a different life cycle plc determines revenue earned contributes to strategic marketing planning may help the firm to identify when a product needs support, redesign, reinvigorating, withdrawal, etc. Product life cycle analysis 2020 update matrix marketing. Product life cycle 4 stages of products life feedough.
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. It gains more and more customers as it grows and, eventually, the market stabilizes and the product becomes mature. A lot of factors were accounted for, and importance of marketing strategies and product life cycle highlighted. Setting a low initial price to encourage higher distribution and exposure.
Marketing management product life cycle tutorialspoint. The study and practice of marketing have broadened considerably, from an emphasis on marketing as a functional management issue, to a wider focus on the strategic role of marketing in overall. Jun 25, 2018 product life cycle is the set of stages a product goes through during its lifetime. In this stage, theres heavy marketing activity, product promotion and the product is put into limited outlets in a few channels for distribution. Normally any strategic process has three distinct stages which are analy.
This generally requires important changes in marketing strategies and methods. Reasons why we say that a product has a life cycle. Most marketing executives are by now familiar with the concept of the product life cycle and product life cycle analysis. Product passes through four stages of its life cycle.
An understanding of the cycle is helpful to the managers for a rational understanding of the future sales activities as also planning of marketing strategies. Sep 24, 2014 the product life cycle stages or international product life cycle, which was developed by the economist raymond vernon in 1966, is still a widely used model in economics and marketing. Jul 09, 2018 this pdf will tell you about how companies can benefit by understanding the product life cycle and how can they price accordingly. Each stage is associated with changes in the product s marketing position. 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. It describes the stages a product goes through from when it was first thought of until it finally is removed from the market. Most alert and thoughtful senior marketing executives are by now familiar with the concept of the product life cycle. The product is promoted to create awareness and develop a market for the product. The journey starts from the day it is just an idea to the day it is finally removed from the market.
Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage. The product life cycle is an important concept in marketing. Jul 27, 2017 marketing strategies based on product life cycle 1. Product life cycle analysis matrix marketing group. A short product life cycle is one of the hallmarks of a fad. After a period of development, the product is introduced or launched into the market. Products generally go through a life cycle with predictable sales and profits. Just as each stage of the product life cycle demands a different approach to the product itself, the stages also have specific effects on your overall marketing strategy. Concerning the product life cycle strategies we can identify the proper launch strategy. A product is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.
Marketing strategies of smes based on product life cycle a. Product life cyclemarketing strategies nestle marketing. Product life cycle to introduce a new product, two methods may be used. 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. What is the product life cycle stages theory by vernon. Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller. Marketing strategies of smes based on product life. The product life cycle plc starts with the products development and introduction, then moves toward withdrawal or eventual demise. Each stage has its costs, opportunities, and risks, and individual products differ in how long they remain at any of the life cycle stages. You can use various marketing strategies in each stage to try to prolong the life cycle of your products. Without doubt, this initial strategy can be considered to be the first step in a grander marketing plan for the products entire life cycle. Product life cycle is an important tool for market forecasting, planning and control. Usually, there are 4 different stages in the product life cycle.
Jan 05, 2019 this importance helps to explain marketing programmes, policies, and procedures. Nonetheless, the product life cycle concept helps marketing managers to plan alternate marketing strategies to address the challenges that their products are likely to face. The life cycle of a product is associated with marketing and management decisions within businesses, and all products go through five primary stages. Strategies for the different stages of the product life cycle introduction. The plcs importance to marketing decision makers is to help identify appropriate strategies and tactics for. The product life cycle is a wellknown framework in marketing. Possible stages of the product life cycle are shown in fig. There is a decrease in demand and sales of the product. Such product strategies look at the various stages the product is in the life cycle and then come up with the appropriate strategies. Product life cycle and marketing management strategies ijert.
How to use the product lifecycle model smart insights. Newproduct development strategies product lifecycle. Marketing strategies in the decline stage of product life. Setting a high price for a new product to capitalize on high demand.
Products enter the market and gradually disappear again. But the policies and tactics now adopted will be neither freely the sole choice of. 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. Sep 30, 2014 this learning video will show you the concept of product life cycle to determining the marketing strategies of various stages of product. Impact of the product life cycle on marketing strategy.
Product life cycle product life cycle is the course of a products sales and profits over time. The product life cycle of an apple iphone is also used as an example in the article. Apr 17, 2019 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. Life is a series of developments and changes, resulting in peaks, decline and eventually, demise. Without doubt, this initial strategy can be considered to be the first step in a grander marketing plan for the product s entire life cycle. The product can be found in various stages of development based on this cycle. Products go through four distinct stages in the life cycle, each with its own unique marketing strategies. Product life cycle plc is the cycle through which every product goes through from introduction to withdrawal or eventual demise. Marketing strategies, however, have to be changed with changes in the phase of the life cycle of a product. The product life cycle plc starts with the products development and introduction. A given product may hold a unique product life cycle shape such that use of typical product life cycle models are useful only as a rough guide for marketing management. Usually, the firm will have tried to keep the product as long as possible in the maturity stage. Product life cycle of apple iphone ebook super heuristics.