The product life-cycle is an important tool for marketers, management and designers alike. It specifies four individual stages of a product’s life and offers guidance for developing strategies to make the best use of those stages and promote the overall success of the product in the marketplace. Show
About the Product-Life CycleLinda Gorchels in her book “The Product Manager’s Handbook” defines the product-life cycle and offers some key assumptions upon which it is based. The assumptions that are made are:
The Product Life Cycle
It is worth noting that while products are often discontinued at the end of the lifecycle; the business will usually remain and will be involved in other products by this stage. Author/Copyright holder: Malakooti, B. Copyright terms and licence: CC BY-SA 4.0 How to Tell What Stage in the Product-Life Cycle a Product is AtIt is important to note that the diagram of the product-life cycle represents an idealized product-life cycle and that most products do not follow the curve in a perfect manner. There may be sudden dips, in sales during growth or maturity, which do not accurately reflect the position of the product in the lifecycle, for example. Thus there are no absolute indicators for the position of a product during the life cycle. However, there are general indicators which can be applied – in the context of your own observations over time – which will give some indication of a product’s position in its lifecycle. These can be summarized as follows:
Challenges of Using the Product-Life CycleIt is important to note that a product life cycle is a complex thing. Some products have life-cycles measured in months or years whereas others may be measured in decades or centuries. Rising sales do not always indicate growth, falling sales do not always indicate decline. Some products may not experience a decline at all within the lifetime of the business management team (think about Coca-Cola for example which has enjoyed relatively consistent sales for over 100 years). Author/Copyright holder: Sean Loyless. Copyright terms and licence: CC BY 2.0Because of this, it is important to use the product-life cycle as a guideline to which large quantities of common sense must be applied rather than to use it as a rigid tool for decision making. Maturity and decline, in particular, can be difficult to identify with any form of precision and strategic decisions must be approached with caution to deliver the expected outcomes. The Take AwayThe product-life cycle provides guidance to a business as it progresses a product from introduction, through growth and maturity to decline. It is not designed to be a rigid tool and it is important that common sense and general understanding of the market be used alongside the product-life cycle in order to get the most value from it. Designers are most likely to be involved with the stages of introduction, growth and maturity and be moving on to new projects when a product is in decline. Never forget Philip Kotler, the world famous marketer’s, advice though; “Watch the product life cycle; but more important, watch the market lifecycle.” It’s not just products that come to an end but markets can too. References & Where to Learn More:Course: Get Your Product Used: Adoption and Appropriation Gorchels, L. (2002) “The Product Manager’s Handbook: The Complete Product Management Resource” , McGraw-Hill, ISBN 978-0658800 13522 Day, G. (1981) The product life cycle: Analysis and applications issues, Journal of Marketing, vol 45, Autumn 1981 Levitt, T. (1965) Exploit the product life cycle, Harvard Business Review, vol 43, November–December 1965 Hero Image: Author/Copyright holder: Mwpnl. Copyright terms and licence: CC BY-SA 3.0 Why is it important for marketers to understand the product life cycle?What Is the Product Life Cycle Important? The product life cycle is important in marketing because it helps define and determine strategies related to a particular product. According to subjectquery.com, it works as “a forecasting tool, planning tool, control tool, and estimated for profits.”
Why the product life cycle is an important consideration in selecting and developing a marketing strategy?The product life-cycle is an important tool for marketers, management and designers alike. It specifies four individual stages of a product's life and offers guidance for developing strategies to make the best use of those stages and promote the overall success of the product in the marketplace.
What is the importance of product knowledge for the marketer in order to get the consumer involvement in the product?Product knowledge is an essential sales skill. Understanding your products' features allows you to present their benefits accurately and persuasively. Customers respond to enthusiastic sales staff who are passionate about their products and eager to share the benefits with them.
What happens in the growth stage of the product life cycle?During the growth stage, consumers have accepted the product in the market and customers are beginning to truly buy in. That means demand and profits are growing, hopefully at a steadily rapid pace. The growth stage is when the market for the product is expanding and competition begins developing.
|