This concept of product lifecycle is so significant that it can be used as a major tool by marketing manager in market forecasting, planning and control. A study on the product life cycle of samsung smartphones in. However,itnowseemsappropriatetotakea critical look at thisconcept to seewhat we doindeedknow, to see if welikewhat we know,and to thinkabout where wego fromhere if. The life of most products can be divided into five key stages. Product life cycle a concept that provides a way to trace the stages of a products acceptance, from its introduction birth to its decline death. Benefits and limitations of product life cycle plc benefits. It is clear that the use of the model has a significant impact on the success of the business strategy and the associated corporate performance. In conclusion, product life cycle is a very important concept within an organization. Phase d system assembly, integration and test, and launch purpose. 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. Residue 24 2 painting solid residue 23 2 lots of metal scrap and. Though it helps us in having highly competitive marketing strategies, its specific uses can be seen in its application in the following areas.
A study on the product life cycle of samsung smartphones in india dibyajyoti mohapatra asst. Pdf on jan 1, 2005, frikkie herbst and others published utilising the product life cycle concept during product and market development in south african banks. One of the most common ideas in marketing in the concept of the product lifecycle figure 4. Product life cycle stages managing the product life cycle. Pdf product lifecycle management plm is an integrated, informationdriven strategy that speeds the innovation and launch of successful products. Product lifecycle management plm should be distinguished from product lifecycle management marketing plcm. This overview is designed to put these articles into a broader perspective by analyzing the major issues of identification, forecasting, and strategy formulation encountered in any meaningful application of the product life cycle. In business terms, the product lifecycle, in a marketing context, is all the stages of a products life span that are related to its promotion and sales. The product life cycle is the life of the product from the procurement of raw materials and components, manufacturing, transportation, usage, collection, recycling, and up to disposal. This video explores the path products take through their lives introductionbirth, growth, maturity, and retirementdecline. This article challenges itnot just certain aspects or interpretations of the life cycle notion, but its very concept and existence. In this stage, theres heavy marketing activity, product promotion and the product is put into limited outlets in. Dandekar iowa state university follow this and additional works at. Product life cycle is defined as, the cycle through which every product goes through from introduction to withdrawal or eventual demise.
Hence, he who sees the market for a new product in the usa may. Product life cycle and marketing management strategies. As newer products and product versions are introduced to the market, older products and product versions are expected to move off maintenance and from the maintain to the sunset stage of the perkinelmer informatics product life cycle. New products result from innovation and pass through a number of phases referred to as product life cycle plc. Pdf utilising the product life cycle concept during. Product life cycle concept limitation and implications iibm lms. Plm describes the engineering aspect of a product, from managing descriptions and properties of a product through its development and useful life. The product life cycle can vary for different products and different product categories. This concept of product life cycle is so significant that it can be used as a major tool by marketing manager in market forecasting, planning and control. To build the subsystems including operations systems and integrate them to create the system, while developing confidence that it will be able to meet the systems requirements. 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.
Such product strategies look at the various stages the product is in the life cycle and then come up with the appropriate strategies. Every product goes through a life cycle from development to decline each life cycle is different some products have longer lifecycles than others some companies are very successful in extending lifecycles. Strategies the number 1 benefit of product life cycle is that it can help you to define the strategies which can be used based on the life cycle stage. There are some major product life cycle management techniques that can be used to. Product life cycle product life cycle product life cycle product life cycle is a normative and descriptive model for the life of products in general individual products will experience their own variation some products may have a higher sales curve. It describes the stages a product goes through from when it was first thought of until it finally is removed from the market.
Although the product life cycle plc concept has been the mainstay of marketing strategy for many years, its accuracy and empirical basis are both questionable. The concept describes the four stages and offers some practical suggestions on how companies can use product life cycle information in their strategy development and marketing operations. Onu abstract business organizations are built upon and sustained by an orderly and consistent flow of new products. Products require different marketing, financial, manufacturing, purchasing, and human resources strategies in each life cycle stages. The product life cycle stages can be used for describing how products and markets work. A guide to new product development product life cycle. May 09, 2014 strategies taken to establish new product category what measures nil should take to sustain the image of a popular brand image. Sunset decisions are based on the volume of orders, age of the productproduct version, strategic fit. Briefly, it is suggested that products pass through a number of stages over time. Bmws concept of product life cycle there are four main periods in a product life cycle concept which begins with the introduction stage, followed by the growth stage, then the maturity stage, and finally the decline stage. Product life cycle plc is the cycle through which every product goes through from introduction to withdrawal or eventual demise.
These topics are discussed in order, as they pertain to the development of the product life cycle concept. May 02, 20 this video explores the path products take through their lives introductionbirth, growth, maturity, and retirementdecline. Scientific knowledge probability of applying scientific. If you understand this model and what it means, it might explain why an organization acts in the way it does, sometimes going against what you would expect. Descriptive model for the life of products in general the plcs importance to marketing decision makers is to help identify appropriate strategies and tactics for presenting a product. Product development, product introduction, product growth, product maturity and finally product decline. Pdf utilising the product life cycle concept during product. In business terms, the product lifecycle, in a marketing context, is all the stages of a product s life span that are related to its promotion and sales. A study on the product life cycle of samsung smartphones. Criticisms of the product life cycle plc while the product life cycle model is a very helpful tool for helping to understand current and potential market conditions, in order to develop appropriate marketing and competitive strategies, there are some limitations and concerns with the usage of the plc. Hence, he who sees the market for a new product in the usa may start by locating its production site in the usa. In many cases, products do not develop along the traditional stages.
However, using the plc concept for forecasting product performance or developing marketing strategies brings some. Although there are many small variations in the number. The concept is based on a simple biological analogy of stages over a products life, which is intuitively appealing, but unfortunately has limited utility in practice. The understanding of a products 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 products success or failure.
Almost without exception basic marketing texts refer to and illustrate the meaning of this concept. The product life cycle model can help to analyze maturity stages of products and industries. This can help firms to reassess their objectives, strategies, and different elements of a marketing program. There is a large gap between equal access to knowledge of scientific principles and the embodiment of such. A short product life cycle is one of the hallmarks of a fad. In this stage, theres heavy marketing activity, product promotion and the product is put into limited outlets in a few channels for distribution. The implications of the product lifecycle part one estimated reading time. The implications of the product lifecycle part one. These phases exist and are applicable to all products or. A guide to new product development product life cycle management. This mini project is about a study on the product life cycle of samsung galaxy in india and the. Benefits and limitations of product life cycle plc.
Hypothetical product lifecycle of services explained. The concept is based on a simple biological analogy of stages over a product s life, which is intuitively appealing, but unfortunately has limited utility in practice. In technical areas, the product lifecycle can totally shape your work. Product life cycle refers to the stages through which a product or a product category bypass. The product life cycle is an excellent tool which can be used by business managers, strategists and marketing managers to come up with product strategies. When used carefully, the plc concept can be a great help in developing goods marketing strategies for the different product life cycle stages. The plc concept is a generalized model of the sale trend for a product. Exploit the product life cycle vol 43, novemberdecember 1965, pp 8194. The product life cycle is the concept that a product goes through several stages in the course of its life.
In order to make a product survive in the market as long as possible, it is very essential for the marketers to understand the product life cycle so as to providedesign effective marketing strategies for. The product life cycle is a marketing theory cycle or succession of strategies experienced by every product which begins with a products introduction, sometimes referenced as research and development, followed by its sales growth, then maturity and finally market saturation and decline. The product life cycle plc refers to the notion that products have a limited period lifetime in the marketplace and that this period passes through a number of different stages, each requiring different approaches to the production, distribution, and marketing of the product. Marketing management, srusti academy of management, bhubaneswar abstract. What is product developments impact on product marketing mix. The product life cycle plc concept is a wellknown marketing strategy and planning tool. 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. Product life cycle shivani bhambri1 abstract product life cycle plc is the cycle through which every product goes through from introduction to withdrawal or eventual demise. Fashion cycles changes in consumer tastes for clothing can be identified throughout the last. The above diagram depicts a typical product life cycle.
The product life cycle is an important concept in marketing. Origins and development of the product life cycle concept. The products life cycle period usually consists of five major steps or phases. 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.
You need a thorough understanding of the answers to these questions and how they relate when planning your marketing mix. In order to make a product survive in the market as long as possible, it is very essential for the marketers to understand the product life cycle so as to providedesign effective marketing strategies for each phase of plc. This concept is known as the product life cycle typical stages of a product life cycle include. All products or services that your business offers will change throughout their life. International investment and international trade in the product cycle. I initially recommend you to read the article on product life cycle and.
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