Product life cycle pattern+thesis
As the product moves through the stages of the life cycle, the firm must keep revising the marketing mix to stay competitive and meet the needs of target customers. It is important to note that not all products follow the bell curve as illustrated in previous chapter.
Although more and more competitors leave the market during this stage, the cash flow and capital utilisation decline as well. Another common pattern is called scalloped pattern. Sales observe a succession of growth periods based on the discovery of new product characteristics, uses, or users.
Product life cycle examples
The length of fashion cycles is difficult to predict as the consumers soon start to look for the missing attributes. The first one is called style. Marketers must be sure that a product has moved from one stage to the next before changing its marketing strategy. Most products that have been on the market for a long time are in this stage. Once the product is designed and put into the market, the offering should be managed efficiently for the buyers to get value from it. Not all products reach this final stage. Also, most firms have recovered their development costs by now, and their priority is in increasing or retaining market share and enhancing profits. Market introduction stage This is the stage in which the product has been introduced first time in the market and the sales of the product starts to grow slowly and gradually and the profit received from the product is nominal and non-attained. Heightening interest: Many of the following things attract many customers who match certain profiles: Eco-friendly production processes, good work conditions, funding the efforts of non-profit organizations cancer cure, anti-war efforts, refugees, GLTBI, environment and animal protection, etc. While some of these new beverages are close relatives of the original Coca-Cola Classic, others, such as Vitaminwater, constitute entirely new categories of soft drink. A typical example of this pattern can be seen in pharmaceutical industry where sales start declining the company gives the drug another push, which produces a second cycle. Toward the end of the growth phase, prices normally begin falling, and profits peak.
Growth stage In the growth stage, the product is visibly present in the market, the product has habitual consumers, and there is quick growth in product sales. PLM solutions help organizations overcome the increased complexity and engineering challenges of developing new products for the global competitive markets.
Published by Manas Bhardwaj on March 27, Introduction The product life cycle is an important concept in marketing.
This is the period when the product is launched in the market. Marketers who understand the cycle concept are better able to forecast future sales and plan new marketing strategies. Profits and price usually fall during this phase of the PLC.
Stages of the Life Cycle As illustrated in Figurethe product life cycle consists of the following stages: Introduction: When a product enters the life cycle, it faces many obstacles.
Sony VCRs are an example of a product in the decline stage. The rate of decline is governed by two factors: the rate of change in consumer tastes and the rate at which new products enter the market.
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