Question

What is the purpose of the Product Life Cycle? Identify and explain the four stages of the product life cycle. In your response, be sure to include an indication of how sales, profits, product, price, promotion and place change with each stage. Explain what marketers can do to extend the length of the product life cycle? Provide examples to showcase your ideas.

Answer 1

Purpose of the Product Life Cycle

• Item life cycle is a procedure or cycle which shows the advancement of an item in the market from when the item or a help is acquainted in the market with when the deals of the item decay and it moves out of the market.
• The fundamental motivation behind item life cycle is that it gives organizations a plan to create deals and promoting techniques that can be utilized at various phases of the item life in the market.
• This encourages the organizations to situate their items viably, increment piece of the pie, decrease misfortunes by expanding benefit, improve deals and have a long existence of their items and administrations in the market.

The 4 phases of the item life cycle have been referenced beneath:

(a) Introduction organize :

This is the absolute first phase of item life cycle and as the name states, it is the phase when the item is presented in the market just because. The advancements and advertising of the item is at its pinnacle in order to contact a more extensive crowd. Accordingly, organizations contribute to a great extent on the showcasing of the item. It is a represent the deciding moment arrange for the item. This stage gives organizations a thought of the reaction of the clients towards the new item. Since there is almost no opposition, the cost of the items is commonly high and the deals are low. One of the instances of an item right now electric vehicles.

(b) Growth Stage :

As the deals of the item builds, the item or the administration enters the development organize as countless clients presently expend this item. The opposition at this stage is commonly high and hence, organizations diminish the cost of the item. So as to have an upper edge over the contenders, organizations despite everything contribute vigorously on ads and advertising of their administrations and items. The piece of the overall industry of the organizations increments as the deals of the item rise. The cost of the items is fairly serious due to the expanded rivalry. One of the instances of an item right now keen watches.

(c) Maturity Stage :

As the deals of an item begins easing back down, it enters the development organize. The deals of the item at this stage become soaked. The overall revenues begin to contract and along these lines, the valuing turns out to be increasingly serious. The organizations are compelled to discounted the cost of the item as a result of lower request and high rivalry. Showcasing is engaged so that it guards the items against the contenders. At this stage, the volume of deals has as of now maximized. So as to keep up the piece of the pie, organizations attempt to bring advancement into their items and generally, less fruitful contenders move out of the opposition. One of the instances of the item right now PCs.

(d) Decline Stage :

The deals of the item or the administration drops hugely and there is practically irrelevant interest for the items or administrations that fall right now. Organizations lose their piece of the pie gradually and the opposition likewise blurs away. Along these lines, the cost of the item is low and advertising is just engaged towards steadfast clients. Inevitably items drop out of the cycle. One of the models that fall under this classification is typewriters.

A couple of techniques that organizations use to broaden the existence pattern of the item are:

(a) Bringing separation:

When the deals of the item begins to go down, organizations attempt to add new highlights and attempt to carry separation into the item so as to get hold of new clients and increment their piece of the overall industry. For instance, if an organization is selling an electric cycle with two apparatuses, organizations may add new speed choices to make it progressively alluring.

(b) Changing bundling of the item:

Smart bundling of items is one of the approaches to build reliability of clients. The greater part of the item purchasing choices depend on the bundling of the item. In the event that the deals of an item begins to diminish, comapnies might need to change the bundling of the item so as to make the item all the more engaging.

(c) Identifying new markets:

Companies presently approach worldwide market and contact a more extensive crowd whenever they need. Organizations now and then move out of their present market when the deals of the item begins diminishing and when the organizations begin to lose their piece of the overall industry. This is done so organizations can hope to go into new markets with potential clients.