The product can be defined as goods, services or both; in the other words it’s anything that satisfies customer need. Each product has its own limited life, however it shares the same aspect and we define the period that the product goes through as the “Product life cycle”.
The Product life cycle consist of four stages starting from introduction stage, growth stage, maturity stage and decline stage. At the introduction stage, the product is not popular and can’t really make a lot of profit. Its marketing cost may be high in order to test a market and set up a distribution channel. At the growth stage, the product start making a profit, the sales increase rapidly with some cost on marketing especially brand building. Competitors enter the market, often in large number depending on how attractive the market is. When a profit starts to decline, it’s the sign of ‘Maturity stage’. At maturity stage, the sales continue to increase but at the decreasing rate until become stable, because of price competition. The product reaches its peak at this stage, most companies fight aggressively to maintain their market share. The competition is very intense, unfortunately a small firms will die one by one. During the decline stage, the profit start to drop gradually, each firm has to manage carefully. There’re not many choice to choose now; take the most out of it before exit or expand the market by using marketing mix strategies in order to extend product life.
Can product life...
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Knowing Macau with Butler's Life Cycle Model The following literature is suggesting that how a tourist destination can be analyzed with the help of Butler's Tourism Life Cycle Model. Butler (1980) introduced the concept of the model which clarifies and extends earlier work by, for example, Cristaller (1963), Noronha (1976) and Stansfield (1978). In doing so, Butler clearly links the development cycle of tourism destinations to that of products in the product life cycle model. This is one the best used management framework to know the evolution in a tourism destination as described by Baum (1998), the original Butler's model included: Recognition of dynamism within the tourism environment... [tags: Tourism Industry Macau Life Cycle Model Butler]
1686 words (4.8 pages)
- ... 68) And Quails, Olshavsky and Michaels (1981) empirically confirmed that the product life cycle's length has been declining over the last 50 years. Simon in ( 1979) he used 43 German products and built a dynamic sales model, the conclusion of the study was that in the introductory and growth and stage the magnitude of the elasticity decreases and reaches to minimum in maturity stage and increase in decline stage. PRODUCT LIFE CYCLE STRATEGIES The Traditional Product Life Cycle model (Steffens & Kaya, 2008) INTRODUCTION GROWTH MATURITY DECLINE PRODUCT Launch a basic product Propose product service, extension, warranty Expand brand and mo... [tags: growth, maturity, saturation, decline]
2617 words (7.5 pages)
- What is the waterfall methodology. According to several software engineering sites, the waterfall methodology is also known as the linear-sequential life cycle model and also known as the traditional approach to software development. The waterfall model is as follows: Requirement of gathering and analysis, flowing down to, System design, then flowing down to Implementation, followed by Testing, and then Deployment of the system, and the final phase of Maintenance. The idea of the waterfall approach is that once a phase is completed, the process continues to move down the chain until all of the phases are completed and there is a product to deliver; the method is unidirectional.... [tags: Agile software development, Waterfall model]
1848 words (5.3 pages)
- Product Life Cycle: iPod Development of the iPod: The iPod is a portable digital music player that holds up to ten thousand songs in a small, hand-held device that is lighter and thinner than two CD cases. iPod features a touch-sensitive navigational wheel and buttons, and an intuitive interface designed for one-handed operation. Songs are stored in several digital audio formats, delivering the highest sound quality. The iPod was born out of the idea dreamed up by Tony Fadell, an independent contractor and hardware expert, to take an MP3 player, build a Napster music sale service to complement it, and build a company around it.... [tags: Apple Ipod Product Essays Papers]
1679 words (4.8 pages)
- Throughout history, a trend can be witnessed in the production of goods subject to international trade. Though the Heckscher–Ohlin (H-O) model is useful in predicting what a country is likely to produce, export, and import, it fails to explain how and why production of good is likely to switch from an exporting country to the importing country. Thus arose the Product Life Cycle (PLC) theory to address this pattern. In essence, the PLC theory states that production begins at the point of the product’s invention with the good being exported to foreign markets.... [tags: International trade, United Kingdom]
1673 words (4.8 pages)
- INTRODUCTION In this essay will explain and evaluate the stages of the international product life cycle and identify locus of operations and target market at each stage. We also will identify the different dimensions of the international product mix with company illustrations and examine the new product development process and the activities involved at each stage in international markets. Finally we will also will examine the degrees of product newness and address international diffusion processes and providing some examples regarding international product life cycle.... [tags: Dimensions, Development Process]
696 words (2 pages)
- Products go through what is commonly called a product life cycle. “Product life cycle describes how product grows over time” (Sychrova’, 2012). It provides a useful model to evaluate the different marketing strategies that applied as product goes through the different stages of its cycle (Cyr & Gray, 2010). As stated by Kotler and Armstrong (2012), there are four major stages in the product life cycle which is introduction, growth, maturity and decline (refer to Figure 1 in Appendix). These four stages are relevant to all outcomes and also services (Sychrova’, 2012).... [tags: economics, growth, pricing]
1197 words (3.4 pages)
- 1.1 Overview Software has become critical to advancement in almost all areas of human endeavor. The art of programming only is no longer sufficient to construct large programs. There are serious problems in the cost, timeliness, maintenance and quality of many software products. Software Engineering has the objective of solving these problems by producing good quality, maintainable software, on time, within budget. To achieve this objective, we have to focus in a disciplined manner on both the quality of the product and on the process used to develop the product.... [tags: Software engineering]
856 words (2.4 pages)
- Analyse the relationship between the product life cycle and cash flow The 'product life cycle' is split into 5 stages: * Research and development * Introduction * Growth * Maturity/Saturation * Decline The product life cycle is the model that represents a sales pattern for a product over a period of time. It shows the revenue by a product from is introduction to its eventual decline. There are four stages to the product life cycle: Introduction, growth, maturity and decline. Research and development is the first stage of the product life cycle.... [tags: Economics]
500 words (1.4 pages)
- What can be learned from The Small Business Life Cycle Model 2005 Table of Contents <ol> <li value="1"> Abstract <li value="2"> Introduction <li value="3"> Body <li value="3">1 Pioneer phase </ol> 3.1.1 Characteristics 3.1.2 Crisis 3.2 Functional phase 3.2.1 Characteristics <ol> <li value="3">2.2 Key challenges <li value="3">2.3 Crisis <li value="3">3 Integrated phase <li value="3">3.1 Characteristics <li value="3">3.2 Limitations <li value="3">4 Associated phase <li value="3">4.1 Characteristics <li value="5"> Conclusion <li value="4"> References <li value="5"> Appendix <li value="5">1 Figure 1 </ol> Abstract Each company has to start from the small business unit wit... [tags: Management]
2126 words (6.1 pages)