Moreover, the life cycle of a given product may be different for different companies in the same industry at the same point in time, and it certainly affects different companies in the same. The product life cycle concept is useful for monitoring sales results over time and comparing them to those of products having a similar life cycle and therefore helps marketing managers to plan future marketing strategies to deal with the challenges. The international product life cycle (iplc) theory, developed and verified by economists to explain trade in a context of comparative advantage, describes the diffusion process of an innovation across national boundaries. There are cases also that the product life cycle of a particular product may last many years, a 100 years take the case of coca cola the product life cycle of a particular product may require a century to complete its life cycle.
Product life cycle stages: the table shows the product life cycle stages and the different marketing characteristics that accompany and identify them the product life cycle is a well-known framework in marketing. Product life cycle the life of a product is usually considered to begin when it is made available, or first shipped to a customer the life of a product ends when the producer stops production. Industrial products usually follow an s-shaped life-cycle curve when sales and profits are plotted over time however, certain products, such as high-tech goods and commodities, may follow a different life-cycle pattern. This is the classic book in silicon valley for high-tech industry moore, g a (1991) crossing the chasm: marketing and selling high-tech goods to mainstream customers.
The product life cycle is a marketing theory cycle or succession of strategies experienced by every product which begins with a product's introduction, sometimes referenced as research and development, followed by its sales growth, then maturity and finally market saturation and decline. 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. Published: mon, 5 dec 2016 posits that, as the pace of change has accelerated rapidly and created unprecedented uncertainty in the markets of this decade, many companies have needed to dispense with existing, once reliable, practices in order to remain competitive. New product development process sample essay the world is full of opportunities to satisfy unmet needs by creating new products and services however, the challenge is determining the product of service that will help the organization to meet its objectives. Product life cycle stages, product life, extension of product life, and product marketing issues  the factor of obsolescence is not dwelt upon, but in the case of products, obsolescence may not be an issue.
The most simple life cycle in the industry and market area is product life cycle, which consider pathway of a product from the beginning of its birth to the last phase of its dead from sales revenue. [ 5] lisa michelle grantham the validity of the product life cycle in the high-tech industry marketing intelligence & planning 15/1  4-10 wood points out that the phrase life cycle. Posits that, as the pace of change has accelerated rapidly and created unprecedented uncertainty in the markets of this decade, many companies have needed to dispense with existing, once reliable, practices in order to remain competitive.
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 is removed from the market it describes the stages a product goes through from when it was first thought of until it finally is removed from the market. Managing short- product life cycle rajni arora doctoral student at punjabi university, patiala e-mail id: [email protected] abstract over the past decade, the high-tech industry has been experiencing an unprecedented acceleration of technology innovations and rapid product introduction cycles.
The product life cycle model describes how products go through the four phases of introduction, growth, maturity, and decline after they are launched each phase requires a different mix of marketing activities to maximize the lifetime profitability of the product. 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:. 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 divided into the phases of. Product life-cycle concentrates only the life-cycle of a product beginning with its introduction into the market to the post-marketing phase however, a series of processes are to be undertaken by the management even prior to the introduction of a product in the market.