The best option is to use a product’s current position in the product life cycle in order to develop marketing strategies. Also, the marketing strategy is both the cause and the result of the product life cycle. For instance, it is difficult to forecast the sales level at each of the product life cycle stages, as well as the length of each stage and the overall shape of the PLC curve. However, using the PLC concept for forecasting product performance or developing marketing strategies brings some practical problems. When used carefully, the PLC concept can be a great help in developing goods marketing strategies for the different product life cycle stages. ![]() The product life cycle stages can be used for describing how products and markets work. Style, Fashion, Fads – Special Product Life Cycle Stages But at a certain point, sales raise unexpectedly, but drop afterwards equally quickly. A fad may be part of an otherwise normal product life cycle, passing through the product life cycle stages. Fashions tend to grow slowly and remain popular for a while, before declining slowly.įads are temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity. For instance, the more formal ‘business attire’ look in the 1980’s gave way to the ‘business casual’ look of the 2000’s. Therefore, a style’s product life cycle stages show several periods of renewed interest.Ī fashion is a currently popular or accepted style in a certain field. A style may last for generations, but usually passes in and out of vogue. country cottage, functional art deco), clothing (e.g. For instance, styles appear in homes (e.g. Their product life cycles are somewhat special.Ī style is a basic and distinctive mode of expression. We can also apply the Product Life Cycle stages to styles, fashion and fads. While product classes have the longest life cycles, staying in the maturity stage for a long time, product forms tend to have the standard PLC shape. In each case, the PLC concept applies differently. four-wheel drives) or a brand (such as the BMW X5). Indeed, the PLC concept can also describe a product class (for instance petrol-powered cars), a product form (e.g. Not only single products can go through the product life cycle stages. Product class, form or brand in the Product Life Cycle Stages Examples include Coca-Cola, Gillette, American Express, which still live on after more than 100 years. In fact, a well-managed brand could live forever if wise strategies are applied. Some are cycled back into the growth stage after reaching the decline stage through strong promotion or repositioning. While some products are introduced and die quickly afterwards, others stay in the mature stage for a very long time. Not all products follow all five stages of the product life cycle. Product Life Cycle Stages Different Products – Different Product Life Cycle Stages Finally, sales fall off and profits drop. Profits level off or decline because marketing outlays need to be increased to defend the product against competition. In the maturity stage, sales growth slows down because the product has achieved acceptance by most potential buyers. The growth stage is a period of rapid market acceptance and increasing profits. ![]() Profits are still non-existent, because the heavy expenses of the product introduction overweigh sales. Sales slowly grow as the product is introduced in the market. During product development, sales are zero, and the company’s investment costs increase. When the company finds and develops a new product idea, product development starts. There are five distinct product life cycle stages: The product life cycle (PLC) is the course of a product’s sales and profits over its lifetime. Special Product Life Cycle Forms Definition of Product Life Cycle (PLC)īefore discussing the product life cycle stages, it is wise to explain what the product life cycle actually is.
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