There are four phases to each product's life cycle, not including the innovation and development stage. Companies use various marketing strategies in each stage to prolong the life cycles of their products. Most strategies are implemented to counter key moves and strategies of competitive companies.
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.
The introduction phase is when the public first sees or hears about a product. The product appears in stores for the first time, and people start seeing print and television ads. During this phase, a company may choose one of two pricing strategies. They may set prices high to recoup initial expenses that went into producing the product. For example, a cellphone manufacturer with new technology may introduce cellphones 10 percent to 20 percent... [continues]
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(2011, 10). Product Life Cycle. StudyMode.com. Retrieved 10, 2011, from http://www.studymode.com/essays/Product-Life-Cycle-820893.html
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"Product Life Cycle." StudyMode.com. 10, 2011. Accessed 10, 2011. http://www.studymode.com/essays/Product-Life-Cycle-820893.html.