First, though most of the literature on product life-cycle states that each and every product follows through this four-phase life-cycle; not all products introduced in the market essentially follow through all these four states.
Fourthly, at a given point of time, or moment, the same product might reach different stages in different market segments. Thus, sales increase at an increasing rate over the period of time.
The sales start climbing up at faster rate because of: The product life-cycle is a conceptual representation. During this period of maturity, the promotional expenses reach a normal ratio to sales. The length of each phase varies from product to product depending on the nature of product, the marketing policies adopted, changes in technology, competition and the laws of the land.
The successful product management needs dynamic functional approach to meet the unique situations of sales and profitability. Lower prices are essential to stave off the competition. What want or need will my product or service satisfy? The Research Phase In some ways, the research phase should be first, because it is the step in which you research your market and determine whether your idea will appeal to your target audience.
For instance, the number of companies manufacturing calculators is much less than what it was in s and s. Just as human-beings have a typical life-cycle going from childhood, adolescence, youth and old-age, so also products follow a similar route.
Professor Theodore Levitt popularized the concept and others like C.
During this period of introduction or the development, the promotional expenses bear the highest proportion of sales. As a concept, it means three things: In this terminal stage, sooner or later actual sales begin to fall under the impact of new product competition and changing consumer tastes and preferences.
Eventually, market becomes saturated because, the house-hold demand is satisfied and distribution channels are full.
Does my product or service fill a need that competitors are not providing? It is so because; the sales are of smaller volume on one side and high level promotion efforts to create demand on the other.
The total number of firms in the arena comes down. For instance, battery shavers were introduced to fulfil the need for electric shavers when the users are away from electricity supply.
It shows that there is apparent gap in production level and sales level.Jun 29, · When you’re developing a new product or service, there is a process that is common to this development, and it can help ensure that you make the best product or service for your target audience.
The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.
the first stage of the industry life cycle, characterized by (1) new products that are not known to customers, (2) poorly defined market segments, (3) unspecified product features, (4) low sales growth, (5) rapid technological change, (6) operating losses, and (7) a need for financial support.
Product Development and Product Life Cycle: The Product Life Cycle follows directly after new product development. A company must succeed at both developing new products and managing them in the face of changing tastes, technologies and.
four basic stages—introduction, growth, maturity, and decline—through which a successful product progresses. Product line group of related products that are physically similar or are intended for the same market. In a recent post, billsimas.com discusses how organizations can adjust their market research strategy for each stage of the product life cycle in order to more effectively market their.Download