Product life cycle theory Rating:
The product life cycle theory is a model that describes the stages a product goes through from development to withdrawal from the market. This theory helps businesses understand the different challenges and opportunities that arise at each stage of a product's life and allows them to make informed decisions about how to allocate resources and market the product.
The product life cycle consists of four stages: introduction, growth, maturity, and decline.
During the introduction stage, a new product is introduced to the market. This stage is characterized by low sales and high marketing and production costs. The main goal of the introduction stage is to build awareness and understanding of the product among potential customers.
As the product becomes more widely known and accepted, it enters the growth stage. During this stage, sales begin to increase rapidly as more and more customers adopt the product. This is a crucial time for businesses, as they must ramp up production to meet the increasing demand and invest in marketing to keep the product top-of-mind for consumers.
As the product reaches its peak popularity, it enters the maturity stage. During this stage, sales start to level off and the product becomes more competitive. At this point, businesses must focus on maintaining market share and maximizing profits through cost-cutting measures and strategic pricing.
Finally, as the product's popularity begins to wane and it becomes increasingly obsolete, it enters the decline stage. Sales decrease and the product is eventually phased out of the market.
The product life cycle theory is a useful tool for businesses as they consider how to allocate resources and plan for the future. By understanding the different stages a product goes through, businesses can make informed decisions about when to invest in marketing, when to ramp up production, and when to start phasing out a product.
Taylor & Francis
However, the time the new product will come to the end of the cycle is important for businesses because the main reason behind developing any product is making profit. Her main expertise is LCA, which she applied and further developed for application to several sectors such as power generation, paper and pulp, food and beverage industries. From this target cost, you develop your product around it. Alternatively, the company may decide to revamp the product or introduce a next-generation, completely overhauled model. During this phase, the evaluation of whether the intended benefits have been delivered by the project takes place. Maturity can last for a long time, or it can actually never be attained. The production of different varieties of the door such as lock opening, automatic opening, etc.
The multiple convergent processing model of new product develeopment. On costs and revenues: Low production costs and a high demand ensures a longer product life. Energy services are for example the supply of electricity or heat or the transportation of persons or goods. Characteristics of the product and the production process are in a state of change during this stage as firms familiarize themselves with the product and the market. Second-Law Analysis With thermodynamic analysis, a second-law analysis can be conducted based on stoichiometric reaction schemes, mass-, energy-, exergy-, and entropy balances.
You can repeat a stage multiple times based on the needs of the product in development. It is a ready-made or expert prescription regarding what a marketing manager should do in different stages of the PLC. Having these local plants would offer the flexibility to make changes to the product without incurring huge costs. It has remained—as have so many fascinating theories in economics, physics, and sex—a remarkably durable but almost totally unemployed and seemingly unemployable piece of professional baggage whose presence in the rhetoric of professional discussions adds a much coveted but apparently unattainable legitimacy to the idea that marketing management is somehow a profession. This guideline aims to reduce the ambiguity in methodological choices and enhances the transparency of LCA studies.
Should he set an initially high price to recoup his investment quickly—i. Typically, it passes through four stages as listed below: 1. The project sponsor must approve the project plan before the project can move into the next phase. Gate-to-Gate Inventory Estimation In cases, where specific information of chemical processes is missing, e. CO 2-based products different in chemical structure and composition can have different emissions during use-phase and end-of-life treatment and different life spans and thus, the emissions timing profile can be different. All this can be illustrated by comparing the curve in Exhibit II with that in Exhibit I, which shows the life cycle for a product. .
Basic Level In the basic approach, input variables shall be identified that have uncertainties with high impacts on the uncertainty of the model output. The production runs become longer, and economies of scale are achieved, reducing per-unit cost and also helping profits to increase rapidly. In addition to extensive laboratory experience, the candidate should also have strong writing and presentation skills in English, excellent organizational skills, the ability to work under time constraints, and a desire to learn about new technologies. Introduction Stage : Introduction stage starts when a new product is, for the very first time, made available for purchase. However, harmonization of assumptions regarding supply of electricity and CO 2 reduced the variation such that all carbon footprints had the same sign and could be clearly distinguished from fossil-based methanol. Examples of servitization include leasing a car instead of buying it, companies that pay for document management services instead of buying copy machines, or airlines paying for the number of engine hours instead of buying engines.
Once this is complete, theproduct life cycle beginsas a business introduces a product for the first time. Are there enough resources to make new product successful? Suppose this occurred through the introduction of a new competitive product with additional benefits. With proper marketing, a product can go into the growth stage. The company loses all its shares in the market of the product and because of competition, sales deteriorate. During the end of the first cycle, the company gives aggressive promotional drive as in the introductory stage, which further pushes sales and reaches another peak lower than the first one and again starts declining second cycle. In addition, foreign demand for the product grows, but it is associated particularly with other developed countries, since the product is catering to high-income demands.
Product Life Cycle Theory: Definition, Stages & Example
The company needs to spend a significant amount of money on obtaining an adequate distribution of the product. DVDs replaced VHS tapes, and after only a couple of decades, began to decline, too. A lot of ideas are generated till the business finds the most suitable ones. In other cases, this information might not be available, because products are purchased from a market, e. International Product Life Cycle: Example from Computer Industry International product life cycle theory can be applied to the computer industry.
New Product - Old Concept - Easy to Copy Do you remember the Livestrong rubber band? For example, Apple produces different kinds of computers, and Nike produces several types of sports shoes. PLM software specializes in the life cycle of your products, from conception to retirement. Teaching and certificates You'll learn through a combination of lectures, hands-on examples, group discussion and exercises. Solving Multi-Functionality Most CCU systems are multi-functional, because CO 2 sources often provide a main product and CO 2 2 in the steam-methane-reforming process. Towards the end of this stage, sales and profits will start to fall fairly rapidly. Journal of Manufacturing Technology Management.