22-09-2012, 11:31 AM
Product Life Cycle
Product Life Cycle.docx (Size: 40.99 KB / Downloads: 28)
What is a Product Life Cycle (PLC)?
Do you really know what a product is? Well, a product is anything which is capable of satisfying customers’ needs. Product includes both physical or tangible products (car, type writer, computer, chair) and intangible products or services (health care, banking, insurance).
Theory of PLC: Biological Life Cycle Versus Product Life Cycle
The 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 out flowers and leaves (maturity); and after a defined 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 theory applies to a product. When a new product is launched in the market, it starts gaining customers; then it stabilizes and becomes mature; then after some time, it is taken over by the introduction of better and superior competitors therefore, it is withdrawn or harvested from the market.
Benefits of Using a Product Life Cycle for Revenue
Marketing managers consider product life cycle as an important measure of sales revenues. As you can see from the figure, the slope of the curve denotes the sales of a particular product. The more the slope, the more the sales. When a product is introduced in the market, the sales are negligible.
Due to marketing and promotion efforts, the demand of product starts to increase 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 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)/ PLCM
Product life cycle management (or PLCM) is the succession of strategies used by business management as a product goes through its developmental life cycle. The conditions involving the promotion and sales of a product, involving advertising and market saturation 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 assortment of all those controllable elements which are involved in the planning of a product’s marketing. Typically, they include the following 4P’s”
1. Product (often substituted by Presentation)
2. Price
3. Place
4. Promotion
These four elements are adjusted until the correct combination is reached befitting the requirements of a product’s customers, while generating optimum income.
Product Life Cycle.docx (Size: 40.99 KB / Downloads: 28)
What is a Product Life Cycle (PLC)?
Do you really know what a product is? Well, a product is anything which is capable of satisfying customers’ needs. Product includes both physical or tangible products (car, type writer, computer, chair) and intangible products or services (health care, banking, insurance).
Theory of PLC: Biological Life Cycle Versus Product Life Cycle
The 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 out flowers and leaves (maturity); and after a defined 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 theory applies to a product. When a new product is launched in the market, it starts gaining customers; then it stabilizes and becomes mature; then after some time, it is taken over by the introduction of better and superior competitors therefore, it is withdrawn or harvested from the market.
Benefits of Using a Product Life Cycle for Revenue
Marketing managers consider product life cycle as an important measure of sales revenues. As you can see from the figure, the slope of the curve denotes the sales of a particular product. The more the slope, the more the sales. When a product is introduced in the market, the sales are negligible.
Due to marketing and promotion efforts, the demand of product starts to increase 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 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)/ PLCM
Product life cycle management (or PLCM) is the succession of strategies used by business management as a product goes through its developmental life cycle. The conditions involving the promotion and sales of a product, involving advertising and market saturation 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 assortment of all those controllable elements which are involved in the planning of a product’s marketing. Typically, they include the following 4P’s”
1. Product (often substituted by Presentation)
2. Price
3. Place
4. Promotion
These four elements are adjusted until the correct combination is reached befitting the requirements of a product’s customers, while generating optimum income.