Product Life Cycle Stages Explained
The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.
Introduction Stage – This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector.
Growth Stage – The growth stage is ...view middle of the document...
Product Life Cycle Examples
It’s possible to provide examples of various products to illustrate the different stages of the product life cycle more clearly. Here is the example of watching recorded television and the various stages of each method:
1. Introduction – 3D TVs
2. Growth – Blueray discs/DVR
3. Maturity – DVD
4. Decline – Video cassette
The idea of the product life cycle has been around for some time, and it is an important principle manufacturers need to understand in order to make a profit and stay in business.
However, the key to successful manufacturing is not just understanding this life cycle, but also proactively managing products throughout their lifetime, applying the appropriate resources and sales and marketing strategies, depending on what stage products are at in the cycle
What is Product Life Cycle Management with concept
Just about all manufactured products have a limited life, and during this life they will pass through four product life cycle stages; Introduction, Growth, Maturity and Decline. In each of these stages manufacturers face a different set of challenges. Product life cycle management is the application of different strategies to help meet these challenges and ensure that, whatever stage of the cycle a product may be going through, the manufacturer can maximize sales and profits for their product.
Product Life Cycle Management (Focus area)
To effectively manage the product life cycle, organisations need to have a very strong focus on a number of key business areas:
Development: Before a product can begin its life cycle, it needs to be developed. Research and new product development is one of the first and possibly most important phases of the manufacturing process that companies will need to spend time and money on, in order to make sure that the product is a success.
Financing: Manufacturers will usually need significant funds in order to launch a new product and sustain it through the Introduction stage, but further investment through the Growth and Maturity stages may be financed by the profits from sales. In the Decline Stage, additional investment may be needed to adapt the manufacturing process or move into new markets. Throughout the life cycle of a product, companies need to consider the most appropriate way to finance their costs in order to maximize profit potential.
Marketing: During a product’s life, companies will need to adapt their marketing and promotional activity depending on which stage of the cycle the product is passing through. As the market develops and matures, the consumers attitude to the product will change. So the marketing and promotional activity that launches a new product in the Introduction Stage, will need to be very different from the campaigns that will be designed to protect market share during the Maturity Stage.
Manufacturing: The cost of manufacturing a product can change during its life cycle. To begin with, new processes and...