In: Economics
1. Name and explain with examples THREE stages of the product life cycle.
2. What message does the product life cycle hold for marketers.
(QUESTION -1 )
The three stages of product life cycle are:- Growth, Maturity and Decline.
(a) Growth
The growth phase is when your product starts to sell at a much faster rate. The public is becoming increasingly aware of your product and word of mouthis starting to spread.
The product development has matured and the product's capabilities are now recognised and product development has matured.
For example - Lets take example of health care. Now if demand of" Dr lal path lab " services starts to sustain regardless their any advertisemnet or promotion then we can say that Growth phase is prevailing.
(b) Maturity
The maturity phase is when your product's sales begin to peak. Demand is strong and the service is now booking out. Very soon the products will begin to compete with new alternatives being introduced in the market.
For example- Availability of a new pharmaaceutical product. Fresh from successfull clinical trials , the drug is likely to generate attention in the media. Patients may approch their healthcare providers requesting that perticular medicine as a result of increased awareness.
(c) Decline
The decline point refers to the period when the product reaches its saturation point. In this phase the price can start increasing though the number of sales will decline. This phase requires to take a perticular decision that whether to continue with the same product or to move to some other alternative.
For example- As any technological advancement takes place such as a more advanced wheel chair. Now the people who use wheelchairs will start perceive the other wheelchairs as no longer being able to effectively provide care or comfort.
(QUESTION-2)
The goal of product lifecycle is not to match the curve but to outline what may work best and plan for the future. Hence marketers should give more emphasis on their future plannings on how to implement things for best result . This helps marketers to shape the curve of the market, speeding through the introduction, increasing the slope of the Growth phase, extending the length of maturity and easing the phase of decline.