Product life cycle stages and strategies marketing portfolio. A guide to new product development product life cycle. Each of these situations presents the key moments in the development of a strategy for the future of the product. The product can be found in various stages of development based on this cycle. Product life cycle and marketing management strategies. Possible stages of the product life cycle are shown in fig. The product life cycle refers to a products life span. Johnson 2012 stated that product life cycle plc is a trend whereby a brand new and original product become. 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.
The reason is that early adopters will continue to buy, and later buyers will start following their lead, in particular if they hear favourable word of mouth. The product life cycle plc concept is a wellknown marketing strategy and planning tool. The second level of the product, the tangible product also called the actual, physical or formal product is the physical product or service offered to consumers. Product life cycle principles of marketing deprecated. 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. Product life cycle states relationship between sales volume and profits. The product life cycle is an extensive process and refers to the life of a product in the business market with respect to sales strategies, costs and investments. There are 4 different product life cycle stages which are known as introduction, growth, maturity and decline. Depending on the position of the product in the cycle, it may limit its entry into the market. Product lifecycle management plm is the succession of strategies by business management as a product goes through its lifecycle. Marketing strategies of smes based on product life cycle a. However, although it shares the same title, contemporary plm is quite different from the early twentieth centurys plm culture, which was established upon the basis of the classical life cycle body of theory, which continued to be refined, right up to the end of 1960s.
The main purpose of the paper is to describe the influences of the economic cycle on the life cycle of a product, which is a territory. Throughout all of these stages the sales and profits of a. Each of stages demands the unique or distinguished set of marketing strategies. Marketing objectives should be closely based on the product life cycle stages discussed earlier in this module. Aug 30, 2019 product life cycle describes transition of a product from its development to decline. Some products are tied to specific business cycles or have seasonal factors that impact growth. Most projects goes through similar stages on the path from origin to completion. An investigation of the product life cycle concept as an instrument in. It shows that product life cycle is not best tool to predict the sales. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Pdf recently, product lifecycle management plm has become a popular. Limitations of product life cycle plc product life cycle is criticized that it has no empirical support and it is not fruitful in special cases.
Not all products follow a smooth and predictable growth path. It includes anything that can be offered to the marketplace to. Newproduct development and product lifecycle strategies moghimi slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Plc concerns with the study of the degree of product acceptance by the market over time. Start studying chapter 6, marketing, an introduction. Product cost is too high, pressure to decrease risk what to do when situation changes. One of the shortest stages in the product life cycle is the maturity stage because of the marketing managers desire to keep the product in its growth stage.
Product occupies a dominant position in marketing mix one of the 4 ps key. Marketers call this process the product life cycle four stages that a product goes through over its life. The five stages are development, introduction, growth, maturity, and decline. The product life cycle can be a useful tool in planning for the life of the product, but it has a number of limitations. It is worth noting that, according to kotler, the definition of a product goes far beyond offering a simple product or service. Product life cycle in the same way as business model undergoes four separate stages and need the expertise of many different divisions or managers of a business concern cox, 1967. Product life cycle describes transition of a product from its development to decline. 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. Product life cycle stages and strategies kim huynh. The concept of the product life cycle is today at about the stage that the copernican view of the universe was 300 years ago.
Using the product life cycle as a basis for a product. The product life cycle product life cycle is made based on the biological life cycle. A particular set of marketing strategies and tactics was needed to define a product that did not exist, to create it, and introduce it. Descriptive model for the life of products in general. The continuing controversy about the product life cycle plc concept may indicate that the concept, while useful, is inadequate to explain the entire phenomenon of product growth and proliferation. The product life cycle describes the stages a product goes through from when it was first developed until it finally is removed from the market. Objectivesunderstand how companies find and develop newproduct ideas.
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. When the product has experienced its maximum growth through life cycle management strategies, it means over time the product has matured and new products in its category tend to reduce sales. The product life cycle is an attempt to recognize distinct stages in sales history of the product. 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. Johnson 2012 stated that product life cycle plc is a trend whereby a brand new and original product become outofdate and gradually obsolete johnson, 2012. Website objectives must be developed and decisions must be made about the fundamental design elements of layout, color, typography, graphics, interactivity, usability. Kotler 10 newproduct development and product lifecycle. A companys website is part of its product or service. Awaking the customers from the new product and its benefits, in despite of advertising costs to gain the competition. May 11, 2019 the product life cycle discusses the stages which a product has to go through since the day of its birth to the day it is taken away from the market. Stages of the product life cycle principles of marketing. Markets generally refer to 5 stages in a product s life cycle.
The three product levels model is actually a simplified version of the five product levels model also by philip kotler. Pdf customer cocreation throughout the product life cycle. In theory, its a lot like the life cycle that people go through. Life is a series of developments and changes, resulting in peaks, decline and eventually, demise. The product life cycle is the process a product goes through from when it is first introduced into the market until it declines or is removed from. The circle of life is not a cycle that only exists for living creatures, it also exists for products as well. A product meets the needs of a consumer and in addition to a tangible value this product also has an abstract value. The theory of product life cycle plc was firstly brought forward and shaped by professor raymond vernon of harvard university in 1966 jain and vachani, 2006.
The product life cycle is the concept that a product goes through several stages in the course of its life. Product concept consumer favor products with best quality, performance, innovative features goal improve product features in a continuous fashion userfulness if market is stable, no competing technologies in sight risk. A short product life cycle is one of the hallmarks of a fad. Characteristics of the product life cycle stages and. Three product levels kotler marketing training from epm. An alternative concept, the product evolutionary cycle pec, is hereby proposed to help resolve this. Kotler 1 suggested the value of the product life cycle is. What is the role of product life cycle in marketing. If you continue browsing the site, you agree to the use of cookies on this website. Marketing strategy and the product life cycle bizfluent. In addition, the model aids in determining the required marketing activities and the level of support that is needed to secure the future success of the product. Life cycle of one product can be over in few months, and of another product may last for many years. The maturity stage of the product life cycle in marketing is the last part, when sales decrease. The new product life cycle pertains to a products sales and profits over the course of its entire lifetime.
Though these stages represent a rigid order that all products must move through, not all products go through each stage. Products go through four distinct stages in the life cycle, each with its own unique marketing strategies. Marketing managers can blend the marketing mix variables into a market. A marketer should watch on its sales and market situations to identify the stage in which the product is passing through, and.
Summary of product life cycle marketing objective and strategies kotler, 1997 lets use the chart to compare the marketing strategies for the introduction of a new sweater line with a sweater line that is in the maturity stage of its life cycle. Thus, the basic job of marketing manager is to sell the core benefits of the product. Product life cycle explained 4 stages of product life cycle. Kotler on product life cycle free essays studymode. Just like everything else, product has its own life cycle too.
Product life cycle plc product life cycle stages notes desk. But there are many challenges and difficulties in innovation, design and introducing a new product to a market. Product life cycle product life cycle is the course of a products sales and profits over time. Oct 15, 20 according to philip kotler, who is an economist and a marketing guru, a product is more than a tangible thing. Likewise, we buy a warm coat to protect us from the cold and the rain. Apr 24, 20 newnew product development and product life cycle life strategies bahman moghimi university of georgia b. We just considered the case of apple launching a new product the apple watch. According to philip kotler, who is an economist and a marketing guru, a product is more than a tangible thing. This article is focusing on a number of the primary product life cycle management techniques that can be used to optimize a products revenues in respect to its effective positioning in a market during the introduction stage of the product life cycle. 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 or service being genuinely good and valued by the market. The growth stage is the stage in which the products sales start climbing quickly. In the product life cycle, growth is a stage of rapid market acceptance and substantial profits improvement.
This is the case not only for living beings, but also for consumer products. Marketing and the product life cycle cornell university. Newnewproduct development and product lifecycle life strategies bahman moghimi university of georgia b. The characteristics of the product life cycle stages help us to explain the development of sales that can be observed over the lifetime of a product.
Markets generally refer to 5 stages in a products life cycle. A particular set of marketing strategies and tactics was needed to define a product that did not exist, to create it, and introduce it to the world. See philip kotler, phasing out weak products, hbr march april 1965, p. A guide to new product development product life cycle management. Pdf influences of the economic cycle on the product life. Apr 16, 2016 likewise, we buy a warm coat to protect us from the cold and the rain. The territory is defined as a product with the specific. Product life cycle definition, assumption and stages. It is a readymade or expert prescription regarding what a marketing manager should do in different stages of the plc. Mar 04, 2019 the product life cycle is the process a product goes through from when it is first introduced into the market until it declines or is removed from the market. Product life cycle management plm is the succession of strategies by business management as a product goes through its life cycle. Kotlers words of caution were reinforced by comments. Product passes through four stages of its life cycle.
Objectivesunderstand how companies find and develop new product ideas. Every stage poses different opportunities and challenges to the marketer. The different stages of the plc require different marketing strategies and tactics. Some products are able to skip certain stages in the product lifecycle while others may have difficulty in. After a new product is launched, it will then begin its product life cycle. It includes physical objects, services, personalities, places, organizations and ideas.
Hence, we adopt the product form as the level of analysis in this paper. The time period of product life cycle and the length of each stage varies from product to product. Generally, the life cycle of a product has four clear stages, each with its own characteristics. Summary of product life cycle marketing objective and strategies kotler, 1997. Individual products will experience their own variation.
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. Every product in the market has a life and each goes through several cycles. Product life cycle stages and strategies csumb marketing 306. The concept of the product life cycle is today at about the stage that the copernican. Feb 28, 2014 product management and product life cycle 1. Customer cocreation throughout the product life cycle article pdf available in international journal of industrial engineering and management 41. For this reason philip kotler states that there are five product levels that can be identified and developed. Product life cycle should be studied with reference to the broad picture of demandtechnology life cycle.
117 423 284 1039 700 1340 1541 218 972 977 251 674 368 1525 244 367 623 603 375 1447 1270 1149 1038 1557 1091 1215 1351 161 142 992 1152 324 1153 328 1341 888 1018 987 1491 491 392 1284