The life cycle of a product is broken into four stages—introduction, growth, maturity, and decline. This concept is used by management and by marketing professionals as a factor in deciding when it is appropriate to increase advertising, reduce prices, expand to new markets, or redesign packaging.
What is the concept of PLC?
Definition: Product life cycle (PLC) is the cycle through which every product goes through from introduction to withdrawal or eventual demise. In this stage, sales take off, the market knows of the product; other companies are attracted, profits begin to come in and market shares stabilize.
What are the characteristics of product life cycle?
What is Product Life Cycle – 10 Important Characteristics: Gestation Period, Birth, Growth, Maturity, Decline, Rebirth, Re-Growth, Re-Maturity, Re-Decline and Death. Though the product is considered to have a normal lifecycle it has different characteristics from lifecycle stages of living organisms.
How do you determine product life cycle?
- Look for new products that have never been sold.
- Watch commercials and press releases announcing new products.
- Find products that were recently released which have rapidly increasing sales.
- Look at products that have enjoyed a level sales rate at its peak have reached the maturity stage of the life cycle.
What is product life cycle and its importance?
The product life-cycle is an important tool for marketers, management and designers alike. It specifies four individual stages of a product’s life and offers guidance for developing strategies to make the best use of those stages and promote the overall success of the product in the marketplace.
What are the three viewpoints of product life cycle?
The three viewpoints of product life cycle are the marketing viewpoint, the production viewpoint, and the consumption viewpoint. They differ by the nature of the stages and the nature of the entity’s life being defined.
How does the life cycle of a product change?
As the product moves through different stages of its life cycle, sales volume and profitability change from stage to stage as shown in Fig. 6.1. The management emphasis on the marketing mix elements also undergoes substantial changes from stage to stage.
When does a product pass through certain stages?
It includes when it was introduced; when it was getting rapid acceptance; when it was on the peak of its position; when it started falling from the peak; and when it disappeared. Product passes through certain stages during its life span.
Which is the terminal stage of the product life cycle?
Decline Stage: The decline stage of the product life cycle is the terminal stage where sales drop and production is ultimately halted. Profitability will fall, eventually to the point where it is no longer profitable to produce, and production will stop.
When does a product move into the growth stage?
As the product grows in popularity, in moves into the second phase of its life cycle, i.e., the growth stage. During this stage, the demand expands, price fall, competition increases, and distribution is greatly widened.
