The product life cycle can vary for different products and different product categories. illustrates an example of the product life cycle, showing how a product can move through four stages. However, not all products go through all stages and the length of a stage varies. For example, some products never experience market share growth and are withdrawn from the market.
Product life cycle is defined is 4 stages mainly the introduction stage, growth stage, maturity stage and the decline stage. These stages are devised in such a way that it defines where the product stands and where it would go. Coca Cola identified as in the stage of growth because of its large group of loyal customers.
The use of value engineering techniques have led to planned obsolescence being associated with product deterioration and inferior quality. Vance Packard claimed that this could give engineering a bad name, because it directed creative engineering energies toward short-term market ends rather than more lofty and ambitious engineering goals. As with all these planned obsolescence issues, the marketer and product engineer must determine for themselves if any of these criticisms are warranted. 7 Compiled by: Deep Banerjee, Marketingpundit. com (Product Life Cycle)
Extending the Product Life Cycle When a product reaches the maturity stage of the Product Life Cycle, a company may choose to operate strategies to extend the life of the product. If the product is predicted to continue to be successful the company can use various methods to maintain sales. Otherwise the product will be left as it is to continue to the decline stage. Extension Strategies: Examples of extension strategies are • Discounted price. • Increased advertising. • Added value. Added Value: This is a widely used extension strategy.
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Thus, the life cycle may be useful as a description, but not as a predictor; and usually should be firmly under the control of the marketer. The important point is that in many markets the product or brand life cycle is significantly longer than the planning cycle of the organisations involved. Thus, it offers little practical value for most marketers. Even if the PLC exists for them, their plans will be based just upon that piece of the curve where they currently reside (most probably in the ‘mature’ stage); and their view of that part of it will almost certainly be ‘linear’ (and imited), and will not encompass the whole range from growth to decline Problems with Product Life Cycle In reality very few products follow such enormously. The decisions of marketers decline by price-cutting. Not all products decline. It is not easy to tell which stage tools. Use it to inform your gut feeling. a prescriptive cycle. The length of each stage varies can change the stage, for example from maturity to go through each stage. Some go from introduction to the product is in. Remember that PLC is like all other
Product life cycle of pepsi essays on love - Selfloop
Large companies, in particular food producers, will slightly alter a product to make it seem new and attract new attention to the product. An example being a soft drink company producing a limited edition flavour of the product (eg. Pepsi Blue). This renews sales levels and gives the product continuing interest. 2 Compiled by: Deep Banerjee, Marketingpundit. com (Product Life Cycle) www. marketingpundit. com Market Evolution Market Evolution is a process that parallels the product life cycle. As a product category matures, the industry goes through stages that mirror the five stages of a product life cycle. . Market Crystallization – latent demand for a product category is awakened with the introduction of the new product. 2. Market Expansion – additional companies enter the market and more consumers become aware of the product category. 3. Market Fragmentation – the industry is subdivided into numerous well populated competitive groupings as too many firms enter. 4. Market Consolidation – firms start to leave the industry due to stiff competition, falling prices, and falling profits. 5. Market Termination – consumers no longer demand the product and companies stop producing it. Technology Life Cycle
The Technology Life Cycle is closely associated with the economic potential of obtaining gain through the exploitation of a process or manufacturing system, taking into consideration such attributes of the product or process as its patents, knowhow, trademarks, and/or trade-secrets, the reputation of the proprietor of the technology and other associated intangibles. Industry Lifecycle The lifecycle passes through 5 distinct stages: I – “Dormant Stage” with low numbers of competitors enjoying high monopoly profits. II – “Take off Stage” with soaring entry and virtually non-existent exit from the market.
The Product Life Cycle concept focuses on marketing
Modifying the target market helps a company attract different customers by seeking new users, going after different market segments, or finding new uses for a product in order to attract additional customers. Financial institutions and automobile dealers realized that women have increased buying power and now market to them. With the growth in the number of online shoppers, more organizations sell their products and services through the Internet. Entering new markets provides companies an opportunity to extend the product life cycles of their different offerings.