Learn more about stages in the product life cycle in the Boundless open textbook. Introduction to the product life cycle, covering the life-cycle phases and typical marketing mix decisions for each. The Product Life Cycle. A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the.
Product Life Cycle. A new product progresses through a sequence of stages from introduction to growth, maturity, and decline.
Product Life Cycle Examples
This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix. The product revenue and profits can be plotted as a function of the life- cycle stages as shown in the graph below. Product Life Cycle Diagram Introduction Stage. In the introduction stage, the firm seeks to build product awareness and develop a market for the product. The impact on the marketing mix is as follows: Product branding and quality level is established, and intellectual property protection such as patents and trademarks are obtained. Pricing may be low penetration pricing to build market share rapidly, or high skim pricing to recover development costs. Distribution is selective until consumers show acceptance of the product.
Promotion is aimed at innovators and early adopters. Marketing communications seeks to build product awareness and to educate potential consumers about the product. Growth Stage. In the growth stage, the firm seeks to build brand preference and increase market share. Product quality is maintained and additional features and support services may be added.
Pricing is maintained as the firm enjoys increasing demand with little competition. Distribution channels are added as demand increases and customers accept the product. Promotion is aimed at a broader audience. Maturity Stage. At maturity, the strong growth in sales diminishes. Competition may appear with similar products. The primary objective at this point is to defend market share while maximizing profit. Product features may be enhanced to differentiate the product from that of competitors.
Pricing may be lower because of the new competition. Distribution becomes more intensive and incentives may be offered to encourage preference over competing products. Promotion emphasizes product differentiation. Decline Stage. As sales decline, the firm has several options. Maintain the product, possibly rejuvenating it by adding new features and finding new uses. Harvest the product - reduce costs and continue to offer it, possibly to a loyal niche segment. Discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to continue the product.
The marketing mix decisions in the decline phase will depend on the selected strategy. For example, the product may be changed if it is being rejuvenated, or left unchanged if it is being harvested or liquidated. The price may be maintained if the product is harvested, or reduced drastically if liquidated.
The product life cycle is an important concept in marketing. It describes the stages a product goes through from when it was first thought of until it finally i. The theory of a product life cycle was first introduced in the 1950s to explain the expected life cycle of a typical product from design to obsolescence, a period. Product Life Cycle The product life cycle is defined as the period that starts with the initial product design (research and development) and ends with the. Microsoft Support Lifecycle. Microsoft Support Lifecycle policy provides consistent and predictable guidelines for product support availability when a. Learn about End of Sales, End of Support, Service Packs, Windows Downgrade Rights, and other important Windows lifecycle dates. 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. PTC's solutions for Product Lifecycle Management (PLM) enable superior product management from concept to retirement. Partner with PTC and create better products.
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