PRODUCT LIFE CYCLE:
It is a generally accepted statement that 90% of the products we use today did not exist in their current form five years ago. Similarly, 90% of the products we will be using five years from now do not currently exist. Whether this statement is entirely accurate or not, we can all identify products that have changed from their original form and/or content. And, with today's rapid changes in technology, almost every product will undergo some sort of modification during its lifetime.
This idea is demonstrated by the Product Life Cycle concept, which shows the path a typical new product takes from its inception to its discontinuation. To be precise, it describes the stages a product goes through from its introduction, through its growth until it is mature and then finally its decline. Moreover, it’s associated with changes in the marketing situation, thus impacting the marketing strategy & the marketing mix as well. Knowledge of the product’s life cycle can provide valuable insights into ways the product can be managed to enhance sales and profitability. Marketing activities are heavily dependent on the stage in the product life cycle. Products do not last forever. A typical cycle for a product is as follows:
GRAPHICAL REPRESENTATION OF PRODUCT LIFE CYCLE:
First a product will be developed. The prototype will be tested & market research carried out before it is launched onto the market. There will be no sales at this time.
• INTRODUCTION STAGE:
In the introduction stage the product is launched in the market. The firm will create product awareness & develop a market for the product. No profits are made at...