Product Life Cycle
Aftera new product is released into the market, it will start its productlife cycle (PLC). Evidently, marketers anticipate a product to have along life cycle, wherein, its actual length is not easily understood. As such, the product life cycle is the stages a product undergoesafter development – from its launch to the end of the product. Just like children undergo different stages when growing up productsage and decline at different levels. PLC is an indispensable toolfor marketers when managing the stages of the product’s success andacceptance in divergent markets. There are five stages of aproduct’s life cycle namely development, introduction, growth,maturity, and decline.
Thisstage begins when the company has a new product idea, where it issubjected to subsequent research and development and makes zero salesfrom it (Kotler & Amstrong, 2014). Favored ideas are thoroughlydiscussed. In the case, that the idea is worthwhile, then a prototypeis developed. A decision will then be made whether the product willmove into production. More often than not, many products fail toprogress beyond this stage.
Thisstage begins when the company is slowly bringing its revenue, butthey do not make profits given numerous expenses involved (Kotler &Armstrong, 2014). Contrary to other stages, marketing cost issignificantly higher in this stage. Communication is imperative ingenerating awareness for the product, in garnering consumerpreference. Supply chains and placement alternatives are essential todelivering the product to the consumers. The length of this stagevaries for different products. Tentatively, promotional strategiesvary depending on the type of product and the number of competitorsin the market.
Inthe case, when the market accepts the product, it enters this stage.Rapidmarket acceptance typifies the growth stage, more competitors, andincreased revenues, collected as profits (Kotler& Amstrong,2014).Unfortunately for the company, this stage attracts anincreasingly large group of competitors. For instance, theintroduction of diet coke saw the launch of Diet Pepsi where bothcompanies exhibit the same competitive offering (Eisen, 2014). Asthe number of the consumer continues to increase the company has toensure a steady supply of the products such that, they may opt outfor competing products. The release of Nintendo’s Wii, forexample, witnessed an increased consumer demand, in which, theproducers could not keep up with the demand. As a result, consumersopted for other gaming products from Microsoft’s X-box. Companiesare bound to face trade off’s between high current profit and highmarket share. The company might increase its promotional spendingwhile an increasing number of outlets is realized (Golder. et al.,2012).
Thematurity stage is typified as a period of leveling off profits andsales since the consumers are no longer enthusiastic about theproduct. An increased number of competitors in the market forces thenumber of prospects to decline.Given that intense competitionpropels the fall of profits, the stage lasts longer than otherstages. Many competitors may be compelled to merge. Thus, it isimperative to marketers to maintain their consumers (Kotler &Armstrong, 2014).
Thisstage ensues when the profits and sales drop. This can be facilitatedby a number of reasons namely, shifting consumer preference, advancedtechnology, and increased competition. In this respect, a weakproduct may be at times costly, contrary to the marketing spendinggeared towards saving the product (Singer et al., 2013)
Conclusively,each stage reveals a product’s class and form across differentplatforms. It is imperative therefore that a company invests in aviable product.
Eisen,S. (2014). PepsiTrue, a stevia-sweetened cola, to launch on Amazon. CNBCNews.Retrievedfrom http://www.cnbc.com/id/102046161Golder,P., Mitra, P., & Moorman,C.(2012). What Is Quality? An Integrative Framework ofProcesses and States, 76 (4) Retrieved from https://www.ama.org/publications/JournalOfMarketing/Pages/HaroldHMaynardAward.aspx
Kotler, P.,& Armstrong, G. (2014). New-Product Development and ProductLife-Cycle
Strategies.In Principlesof Marketing (15th ed.,pp. 273-282). Upper Saddle, N.J: Pearson.
Singer,G., Libai, B., Sivan, L., Carmi, E., and Yassin, O. (2013). TheNetwork Value of
Products.77 (3), Retrieved fromhttps://www.ama.org/publications/JournalOfMarketing/Pages/HaroldHMaynardAward.aspx