‘Use extended examples to compare and contrast the characteristics of a growing and a mature product market. Regardless of the value of every product, they all progress through a product life cycle. The phase starts with the introduction of the product and gradually moves to growth, maturity and finally be replaced by new improved products or naturally decline. Each of these stages of product life cycle requires a different marketing mix and research. The life of a product is the period over which it appeals to customers. The sales performance of any product rises from nothing when the product is introduced to the market reaches a peak and then declines to nothing again. Examples of products that have had short lifespan in recent years are home computers. New models with new specifications are launched on the market rapidly to be replaced by newer models which is a similar story for mobile phones (ref: the times hundred business studies; Marketing Theory; online) Increase in the profit of the company is every businesses core goal. To reach the goal product life cycle management is vital. Some companies use strategic planning and others follow the basic rules of the different life cycle phase that are analysed later. The performance of the product has the main effect on the performance of every business from income to profit to cost recovery. Product life cycle helps business management decide which of its current products should receive more or less investment to ensure the business achieves its objectives. Let’s take an example of Apple iPhone: Introduction: Apple first introduces iPhone in MACWORLD SAN FRANCISCO—January 9, 2007 (ref: Apple Press info; online). Growth: The apple iPhone sales for the year 2008 with 245% sales increase (ref: CNNMoney; iPhone sales grew 245% in 2008; online). Maturity: They introduced iPhone in other networks like 3G, 3Gs and Vodafone. Decline: iPhone 3G sold in cheaper price. Now they have moved from iPhone 3G to...
Please join StudyMode to read the full document