PRODUCT LIFE CYCLE
PRODUCT LIFE CYCLE
CONCEPT OF PRODUCTS LIFECYCLE (ELEMENTARY KNOWLEDGE) Product Life Cycle
Definition by Philip Kotler: "An attempt to recognise distinct stages in the sales history of the product "
PLC concept implies:
Products have a limited life.
Product sales pass through distinct stages with each stage posing Challenges/Opportunities/ Problems.
Profits rise/fall during different stages of product life cycle.
Products require different marketing/manufacturing./ finance/ purchase/ HR strategies at each stage of Product Life Cycle.
The product life cycle describes the sales pattern of a product over time. Generally, the time span begins with product introduction and ends with its obsolescence and replacement. While the form of the life cycle is fairly standard, it is subject to variations. The concept underlying the premise of product life cycle is that all products pass through the stages outlined below Basic Stages in the Product Life Cycle
• Development Stage
• Growth stage
• Maturity stage
• Decline stage
The first of these stages, the Development stage, represents a Slow Growth period. It is assumed that newly released products require some time to gain market acceptance, so sales in the initial period are slow.
If the product introduction proved successful, Rapid Growth stages are reached and sales increase markedly. According to the concept of the life cycle, the market for any product is limited, and sales will generally fall short of their potential. When this point is reached, the market enters the maturation stage. The life cycle goes further to assume that each product eventually is replaced by another or that initial rapid growth will end in decline.
If a product enters a market that has already moved into the mature stage, competition is intense because the product must compete for a share of an existing market that is not experiencing growth. Once the market enters the decline stage, new products are not entering the
CONCEPT OF PRODUCTS LIFECYCLE (ELEMENTARY KNOWLEDGE) Product Life Cycle
Definition by Philip Kotler: "An attempt to recognise distinct stages in the sales history of the product "
PLC concept implies:
Products have a limited life.
Product sales pass through distinct stages with each stage posing Challenges/Opportunities/ Problems.
Profits rise/fall during different stages of product life cycle.
Products require different marketing/manufacturing./ finance/ purchase/ HR strategies at each stage of Product Life Cycle.
The product life cycle describes the sales pattern of a product over time. Generally, the time span begins with product introduction and ends with its obsolescence and replacement. While the form of the life cycle is fairly standard, it is subject to variations. The concept underlying the premise of product life cycle is that all products pass through the stages outlined below Basic Stages in the Product Life Cycle
• Development Stage
• Growth stage
• Maturity stage
• Decline stage
The first of these stages, the Development stage, represents a Slow Growth period. It is assumed that newly released products require some time to gain market acceptance, so sales in the initial period are slow.
If the product introduction proved successful, Rapid Growth stages are reached and sales increase markedly. According to the concept of the life cycle, the market for any product is limited, and sales will generally fall short of their potential. When this point is reached, the market enters the maturation stage. The life cycle goes further to assume that each product eventually is replaced by another or that initial rapid growth will end in decline.
If a product enters a market that has already moved into the mature stage, competition is intense because the product must compete for a share of an existing market that is not experiencing growth. Once the market enters the decline stage, new products are not entering the