Product life cycle is the sequence of strategies deployed as a product goes through its life cycle. It is necessary to consider how products and markets will change over time and must be managed as it moves through different stages. The product life cycle goes through four phases and involves professional disciplines requiring skills, tools and processes. Product life cycle (PLC) has to do with the life of a product in the market with respect to commercial costs and sales measures. According to Kotler and Keller (2009) profits rise and fall at different stages of the product life cycle meaning that products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life cycle stage. The four stages of a plc are introduction, growth, maturity and decline. In this assignment, I will relate the concept of a plc to an ‘iPod’ product, first introduced in 2001 by Apple Inc.
The image above shows changes need to be introduced subsequently to maintain success of a product in the market as they satisfy an on-going need. For example, an iPod user listening to music as they jog. The effectiveness can be measured by it performance in the mature stage of its life cycle.
In the introductory stage of an iPod, it takes a bit of time to find acceptance by customers and there is a slow growth in sales. As a new product, priority will be to generate awareness of its existence among its target market and therefore, profits are usually low. There is generally a high cost as employees are recruited for production. The main disadvantage is that Apple Inc will spend money on advertisement of iPod through various media. As payments will be made, skimming prices will be set; making it almost impossible for customers to obtain as the prices is high. An advantage is that, if Apple Inc uses penetration prices, customers can purchase the product and can therefore increase sales of iPods.
There is a rapid...