In this video, i have talked about product life cycle. Let us now discuss the various stages of a product, starting from its innovation to its decline stage. Thus, the purpose of this paper is to understudy the product life cycle and its marketing management strategies. The key is to be prepared to adapt your sales, marketing, pricing and promotional strategies through each stage. The product life cycle is also a useful framework for describing the typical evolution of marketing strategy over the stages of product life. Product life cycle can be defined as the life cycle of the product. Hence, we adopt the product form as the level of analysis in this paper. Product life cycle can be defined as the analysis of the complete life span of a product. Product life cycle shows the stages that products go through from development to withdrawal from the market 3. Definition the stages through which the individual products develop over a period of time is known as product life cycle. The resulting strategies will then affect the product s performance in later product life cycle. According to harvard business school professor youngme moon, though the product life cycle concept has been used successfully. It is an essential tool for analyzing the prospective success or potential of a new product.
The life cycle refers to the period from the products first launch into the market until its final withdrawal and it is. Learn how you can use the product lifecycle model to project changes in the perception and use of your products. All of the information below is based on the product or service being genuinely new to its market could be available in other markets and based on the product. It also is useful for monitoring sales results over time and comparing them to those of products having a similar life cycle. Marketing strategy articles the product life cycle is an excellent tool which can be used by business managers, strategists and marketing managers to come up with product. Benefits of product life cycle management ims marketing. For emerging businesses, the product life cycle concept is an ideal tool that enables marketers to forecast future sales and plan new marketing. A guide to new product development product life cycle. It can alert management that its product will inevitably face saturation and decline, and the host of problems these stages pose. Marketing management product life cycle tutorialspoint. The conditions in which a product is sold advertising, saturation changes over time and must be managed as it moves through its succession of stage. The product life cycle is a necessary process in the management of any product and revolves around the introduction, growth, maturity, and decline stages. Thus, the concept of product lifecycle can be used as a forecasting tool. Product life cycle describes transition of a product from its development to decline.
Product lifecycle management plm receives considerable. Product life cycle the process which a product passes through from birth development to death withdrawal. The understanding of a product s life cycle and marketing strategies can help an organization to understand and realize when it is time to launch and withdraw a product from market. The product life cycle is a pattern of sales and profits over time. Pdf product lifecycle management plm is an integrated, informationdriven strategy that speeds the innovation and launch of successful products.
Product life cycle stages managing the product life cycle. As a product moves through its life cycle, the marketing approach must be adapted. An explanation of the former model leads to an understanding of its perceived shortcomings, and the reason for the takeup. A companys positioning and differentiation strategy must change as the product, market and competitors change over the product life cycleplc. This article is focusing on a number of the primary product life cycle management techniques that can be used to optimize a product s revenues in respect to its effective positioning in a market during the introduction stage of the product life cycle. Product life cycle analysis matrix marketing group. Thus, the purpose of this paper is to understudy the product life cycle and its marketing management. Product life cycle concept product life cycle concept shows a framework to spot the occurrence of opportunities and threats in a product market and the industry. Demand forecasting, planning, and management lecture to 2007 mlog class september 27, 2006 larry lapide, ph. The concept of the product life cycle is today at about the stage that the copernican view. The product life cycle plc describes the stages of a product from launch to being discontinued. Product life cycle and marketing management strategies.
The product life cycle can be a useful tool in planning for the life of the product, but it has a number of limitations. The con of using product life cycles to direct strategies. Product lifecycle management plm is the succession of strategies by business management as a product goes through its life cycle. Product lifecycle management for the pharmaceutical. Pdf in this paper we analyze a modified model for the socalled plc. How to use the product lifecycle model smart insights. Product life cycle product life cycle is a normative and descriptive model for the life of products in general the plcs importance to marketing decision makers is to help identify appropriate strategies. Benefits and limitations of product life cycle plc. In his monograph marketing management 1998 kotler ties the concept of. Product life cycle and marketing management strategies ijert.
The product life cycle concept is also a useful framework for describing the typical evolution of marketing strategy over the product life cycle. This will help in taking sound marketing decisions at different stages of the product life cycle. This is when a new product is first brought to market, before there is a proved. The plcs importance to marketing decision makers is to help identify appropriate strategies and tactics for presenting a product. The product manager is responsible for defining the phases of the product life cycle, projecting key facets i. Product life cycle all about business and management.
From vcrs to the latest tesla model, all products have a life cycle in the market that carry the product from its introduction to removal from the. Impact of the product life cycle on marketing strategy. This paper applies the product life cycle theory to the issue of product line management with two goals in mind. Benefits and limitations of product life cycle april 17, 2019 by hitesh bhasin tagged with. Marketing management masterclass course link and discount code.
It is a strategy tool that helps companies plan for new product. Stages include introduction, growth, maturity and decline and are explained in detail here. 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 life cycle of their particular. Life cycle of one product can be over in few months, and of another product.
Concept and stages prof sneh harshinder sharma professor in hindi, pggc11 chandigarh keywords product life cycle, growth, maturity,decline abstract product life cycle management plm is the succession of strategies used by business management as a product goes through its life cycle. The product life cycle describes the period of time over which an item is developed, brought to market and eventually removed from the market. Product life cycle product life cycle is a normative and descriptive model for the life of products in general the plcs importance to marketing. The understanding of a product s life cycle, can help a company to understand and realize when it is time to introduce and withdraw a product from a market, its position in the market compared to competitors, and the product. This can help firms to reassess their objectives, strategies, and different elements of a marketing.
In other words, the life of a product is finite and advances through several stages i. Product lifecycle management for the pharmaceutical industry an oracle white paper author. Cradle to grave true benefits of product life cycle management. The changes that may take place in the health or the fortune of a product. Learn more about the product life cycle on the free tutor2u website. A short product life cycle is one of the hallmarks of a fad. In the development of the concept of the product life cycle as a management. The time period of product life cycle and the length of each stage varies from product to product. Stages of the product life cycle principles of marketing. Product life cycle is the timeline of demand for the product from its initial stage of introduction. Pdf recently, product lifecycle management plm has become a.
Nonetheless, the product life cycle concept helps marketing managers to plan alternate marketing strategies to address the challenges that their products are likely to face. The best option is to use a product s current position in the product life cycle in order to develop marketing strategies. The conditions in which a product is sold advertising. The product life cycle has been described, analyzed, and annotated so often in the literature of marketing that it has become a given in the minds of many executives. The understanding of a product s life cycle, can help a company to understand and realize when it is time to introduce and withdraw a product from a market, its position in the market compared to competitors, and the product s success or failure. Also, the marketing strategy is both the cause and the result of the product life cycle. The product life cycle concept is derived from the fact that a given product s volume and revenue follow a typical pattern of four phases cycle. 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 life cycle of their particular products. Product managers create marketing mixes for their products as they move through the life cycle. All products and services have certain life cycles. One of the greatest values of the life cycle concept is for managers about to launch a new product.
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