Product Life Cycle
The product life cycle concept is the explanation of the product from its birth to death as a product exists in different stages and in different competitive environments.
William j.stanton
Like humans every product have certain length of life during which it passes through various stages , which can conceptually be represented as product ageing process. Similar to human life a product`s life can also divided into four parts.
Introductory stage
Growth stage
Maturity stage
Decline stage
The product is first launched with full scale production and marketing programe. The product is completely new and thus grows really slowly and needs extreme penetration in the market.
Characteristics of this stage are:-
Low and low sales
High product price
High promotional expenses
Low profits and even loses
Narrow product line
Lack of knowledge
After the acceptance in the market the sales begin to rise. Profits starts rising , and effective distribution, advertising, promotion and publicity are the key factors.
Characteristics of the stage:-
Rapid increase In sales
Improvement in product
Increase in competition
Increase in profits
Reduction in price
The market of the product becomes saturated and slow yet growing. Tough competition is faced due to which profit margin also declines.
Characteristics of the stage:-
Increase in sales but at decreasing rates
Normal promotional expenses
Uniform and lower prices
Profit margins decreases
Here the actual sales begin to fall due to stiff competition and very less or no scope for improvement, and changed consumer behavior. Sales and profits fall down and the promotional expenses are cut-off.
Characteristics of the stage:-
Rapid decrease in sales
Decrease in price and its use as a competitive weapon
No promotional expenses
Suspension of production
A rational marketer takes adequate steps as and when required in order to expand the product`s life span to keep it going such as:
Product
William j.stanton
Like humans every product have certain length of life during which it passes through various stages , which can conceptually be represented as product ageing process. Similar to human life a product`s life can also divided into four parts.
Introductory stage
Growth stage
Maturity stage
Decline stage
The product is first launched with full scale production and marketing programe. The product is completely new and thus grows really slowly and needs extreme penetration in the market.
Characteristics of this stage are:-
Low and low sales
High product price
High promotional expenses
Low profits and even loses
Narrow product line
Lack of knowledge
After the acceptance in the market the sales begin to rise. Profits starts rising , and effective distribution, advertising, promotion and publicity are the key factors.
Characteristics of the stage:-
Rapid increase In sales
Improvement in product
Increase in competition
Increase in profits
Reduction in price
The market of the product becomes saturated and slow yet growing. Tough competition is faced due to which profit margin also declines.
Characteristics of the stage:-
Increase in sales but at decreasing rates
Normal promotional expenses
Uniform and lower prices
Profit margins decreases
Here the actual sales begin to fall due to stiff competition and very less or no scope for improvement, and changed consumer behavior. Sales and profits fall down and the promotional expenses are cut-off.
Characteristics of the stage:-
Rapid decrease in sales
Decrease in price and its use as a competitive weapon
No promotional expenses
Suspension of production
A rational marketer takes adequate steps as and when required in order to expand the product`s life span to keep it going such as:
Product