Product Life Cycle

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Product Lifecycle We define a product as "anything that is capable of satisfying customer needs. This definition includes both physical products (e.g. cars, washing machines, DVD players) as well as services (e.g. insurance, banking, private health care). Businesses should manage their products carefully over time to ensure that they deliver products that continue to meet customer wants. The process of managing groups of brands and product lines is called portfolio planning. The stages through which individual products develop over time is called commonly known as the "Product Life Cycle". The classic product life cycle has four stages (illustrated in the diagram below): introduction; growth; maturity and decline Introduction Stage At the Introduction (or development) Stage market size and growth is slight. It is possible that substantial research and development costs have been incurred in getting the product to this stage. In addition, marketing costs may be high in order to test the market, undergo launch promotion and set up distribution channels. It is highly unlikely that companies will make profits on products at the Introduction Stage. Products at this stage have to be carefully monitored to ensure that they start to grow. Otherwise, the best option may be to withdraw or end the product. Growth Stage The Growth Stage is characterized by rapid growth in sales and profits. Profits arise due to an increase in output (economies of scale) and possibly better prices. At this stage, it is cheaper for businesses to invest in increasing their market share as well as enjoying the overall growth of the market. Accordingly, significant promotional resources are traditionally invested in products that are firmly in the Growth Sta...

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...nferencing Email Faxes Handwritten letters All-in-one racing skin-suits Breathable synthetic fabrics Cotton t-shirts Shell Suits iris-based personal identity cards Smart cards Credit cards Cheque books Personal Computer in Product Life Cycle: In product life cycle the computer is in it growth stage as latest development is in progress and daily latest developments are made. According to researchers that computers are in it early stages and has to travel a lot of distance to come at stability. Complex products such as automobiles, defense systems or computers often have short lifecycles, meaning all facets of the product lifecycle planning (PLP) and management (PLM) process, from design through distribution and customer service, need to be streamlined and synchronized. References Principles of Marketing by Phillip Kotler, Marketing Management by Phillip Kotler

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