The importance of the product life cycle is that. Product lifecycle 2019-02-17

The importance of the product life cycle is that Rating: 5,3/10 1256 reviews

Marketing: Product Life Cycle (GCSE)

the importance of the product life cycle is that

The more relevant and reliable a product is, the more loyal its customer base and in turn, more sales when this loyalty is converted to purchase behavior. Both of these products quickly became must-have devices and sold phenomenally throughout the world. Thus some products that are priced too low at the outset particularly fashion goods, such as the chemise, or sack, a few years ago may catch on so quickly that they become short-lived fads. Let us now discuss the various stages of a product, starting from its innovation to its decline stage. Profitability depends less on sales than the efficiencies of production and distribution efforts It is worth noting that while products are often discontinued at the end of the lifecycle; the business will usually remain and will be involved in other products by this stage. Both of these can cost a lot of money, and in the case of some markets these costs could run into many millions of dollars.

Next

Product life

the importance of the product life cycle is that

New Product Development Process If a company needs to launch a new product in the market, there is a different development process to be considered. Indeed, in a country where blonds are in the minority, the switch from being an unkempt brunette to being an unkempt blond would simply draw attention to her sloppiness. The progression of a product from its into a market, its growth and popularity and eventual decline and removal from the same market is known as the product life cycle. If a monopoly was initially created, then it still exists in this stage. A proved cancer cure would require virtually no market development; it would get immediate massive support. Manufacturers that efficiently manage their products along the product life cycle curve are usually those that have developed the most effective information systems. Beyond these, there will be attempts to create and promote fine product distinctions through packaging and advertising, and to appeal to special market segments.

Next

Product lifecycle

the importance of the product life cycle is that

Product Development and Product Life Cycle: The Product Life Cycle follows directly after new product development. Design is an iterative process, often designs need to be modified due to manufacturing constraints or conflicting requirements. New Product Entrants When a new product is introduced, or a new company opens its doors, the business owner's challenge is to generate awareness for that product or service. Then after a period of time, the product is overtaken by development and the introduction of superior competitors, goes into decline, and is eventually withdrawn. Then the cycle begins again.

Next

Product Life Cycle

the importance of the product life cycle is that

For example, if your product is the Introduction phase you need to focus on features and markets that can provide toehold for your product to start to gain traction and adoption. To do so, it may decide to implement extension strategies - which are intended to extend the life of the product before it goes into decline. Typically, this is the life sciences and advanced markets. The geometry in the sub-systems is then used to define more detail in levels below. Company advertising is mainly focused on building brand awareness. Okoye's interests include empowering under-served communities globally, bridging access to and the delivery of healthcare services. Global Product: Strategy, Product Lifecycle Management and the Billion Customer Question.

Next

Product Life Cycle

the importance of the product life cycle is that

Should he set an initially high price to recoup his investment quickly—i. But before they flattened very noticeably, Du Pont had already developed measures designed to revitalize sales and profits. While there may not be much they can do to change that, by focusing on the key business areas mentioned, product life cycle management allows them to make sure that a product will be as successful as possible during its , however long that might be. Some assembly checking such as is also carried out using software. Break Even: The diagram shows when a product is expected to break even once it is introduced into the market. But the policies and tactics now adopted will be neither freely the sole choice of the originating producer, nor as experimental as they might have been during Stage I. The stage that lasts the longest in the product life cycle is the Maturity stage.

Next

Marketing: Product Life Cycle (GCSE)

the importance of the product life cycle is that

An important aspect for life cycle management is a subset within Systems Engineering called. Developing more varied usage of the product among current users. Establish External Communication In the same concept as above, it is a good idea to communicate with suppliers and end users. In fact, the growth stage is seen as the best time to introduce product innovations, as it creates a positive image of the product and diminishes the presence of competitors who will be attempting to copy or improve the product, and present their own products as a substitute. The relation between these five objects can be presented as pyramid with its tip associated with the lowest Cost, highest Productivity, highest Quality, most Flexibility, and greatest Sustainability. Hence one might lay out the following plan: I.

Next

How to Use the Product

the importance of the product life cycle is that

Even so, the sales of broadwoven, circular knit, and military and miscellaneous groupings peaked in 1957. Maintaining Awareness Once a product is established think CocaCola or Chevrolet , the advertiser's challenge is to maintain that awareness. Sales volume reaches a peak and market saturation is attained 3. Customers need to be encouraged and educated to use the product. For example, it seems quite inconceivable that many manufacturing plants would easily have accepted the replacement of the old single-spindle, constantly man-tended screw machine by a computerized tape-tended, multiple-spindle machine. Nothing seems to take more time, cost more money, involve more pitfalls, cause more anguish, or break more careers than do sincere and well-conceived new product programs. This typically requires a lot of resources and finances.

Next

Brands & Product Life Cycle

the importance of the product life cycle is that

This occurs not only because there are so many competitors, but, as we noted earlier, also because competitors often come in with product improvements and lower prices. Maturity Those products that survive the earlier stages tend to spend longest in this phase. Some producers see the handwriting implacably on the wall but feel that with proper management and cunning they will be one of the survivors after the industry-wide deluge they so clearly foresee. Nissan The Business Founded in 1933 in Japan, Nissan Motor Co manufactures and sells automobiles in over 20 countries around the world. Prices will drop based on competition 5.

Next

Marketing Management Product Life Cycle

the importance of the product life cycle is that

He will have more than the usual difficulties of identifying those characteristics of his product and those supporting communications themes or devices which imply value to the consumer. A brief further elaboration of each stage will be useful before dealing with these questions in detail. But its use is always in the future. There is less rework and less redundancy of effort. It is about business processes, people and methods as much as software application solutions. The decision that is finally made may affect not just the rate at which the product catches on at the beginning, but even the duration of its total life.

Next

Marketing: Product Life Cycle (GCSE)

the importance of the product life cycle is that

It adopts a problem prevention method as compared to the problem solving and re-designing method of traditional sequential engineering. Profits begin to be generated, though the break even point is likely to remain unbreached for a significant time—even until the next stage, depending on the cost and revenue structures. Sales volumes rise appreciably compared to the introduction phase. The latter helped create a powerful consumer consciousness of hair fashions because they made it relatively easy to create and wear fashionable hair styles. Product lifecycle management can be considered one of the four cornerstones of a manufacturing corporation's structure.

Next