Essay The Product Life Cycle

Essay The Product Life Cycle

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The Product Life Cycle

Every product have a beginning and have an end which means they have a
life span. The stages through which individual products develop by
time is called ‘Product Life cycle’. The Product life cycle has four
major stage which are:

¨ Introduction Stage
¨ Growth Stage
¨ Maturity Stage
¨ Decline Stage

Products experience each of these stages at different times and at one
point in time a firm may also have a range of

different products at different stages in their life cycles. The
length of the product life cycle depends on technology and new
inventions. Since these are rapidly changing the life cycle of a
product is getting shorter. For example from CD players where one had
to buy CD’s today one can easily have 4 weeks of music installed on
iPods where there is no need to by CD’s but simply download music from
the internet. This means that CD Players are moving towards the
decline stage while ipods are stepping in the Growth Stage. In this
assignment I will take a look at the product life cycle of a hi-fi
system we use at home. The introduction of hi-fi systems in the
market made other products go through the decline stage or even be
pushed out from the market because hi-fi took their place. Such
products are the redifussion, and home stereos with only cassettes and
with lower sound.

After a product such as the hi-fi system have been developed and put
on the market it is said that it goes through the Introduction
Stage. Despite the very low competition since it is a new innovation,
sales are low as consumers have to still need to get to know about the
product and its benefits over other products such as the radio. Thus
a lot of promotion is needed to inform potential customers about the
advantages and uses of the new product concept. Consumers need to
know the functions of the hi-fi, that it is run by electricity, about
the power of the sound, that they can play CD’s or cassettes and that
it still conatins a radio and how it will effect their life. In order
to bring the product at this stage surely a lot of costs such as
research and development would have been incurred, and moreover other
expenses have to be done to undergo launch promotion and set up
distribution chanels. Thus price can either be high especially with
durables as n the case with the hi-fi system, which need a high

... middle of paper ...

...mple hi-fi’s that can take more
than one CD, two compartments for the cassette and the facility to
record, adding a remote control, producing different sizes and
increasing functions. Marketing spend has to be monitored carefully,
since any significant moves are likely to be copied by competitors
such as differentiation, and price reductions. Thus if industries sets
minimum prices to avoid ‘pyrrhic’ price victory .

Although this Decline Stage have not yet been reached regarding
Hi-fi’s surely sales have decreased once other products entered the
market. Such products are CD players, iPod’s, computers that can play
a CD, portable CD and Radios. Hence the market is shrinking, reducing
the overall amount of profit that can be shared amongst the remaining
competitors. At this stage, great care has to be taken to manage the
product carefully. Ultimately, depending on whether the product
remains profitable, a company may decide to end the product.

The more a firm takes care of the marketing mix without forgetting
what the consumers are looking for, thus in a few words remaining
competitive, during the product’s existence the longer the product’s
life cycle will be.

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