Product life cycle and its stages


2020-07-02 22:59:06




1Like 0Dislike



Every new product coming to the consumer market, is destined to pass through four periods. The stages of the product life cycle are called as follows: introduction, growth, maturity and decline. No matter how high-quality new product after a certain period of time it will displace from the market the improved model.

The Life cycle of the product starts to market – the implementation phase. The most important period for news. The task of the marketers – prepare the market. The course is wide advertising: promotions, distribution of samples, commercials on television, banners on the street, etc, everything is done to the output of goods on the market was accompanied by high demand. Often the producer has substantial losses. But they help to convey information about the brand to the consumer, to excite his desire to try something new. The firm is ready to losses of the first year, because he knows that they are the so-called springboard for high profits in the future. If the manufacturer wants to conquer the market by high product quality, excellent step to attract attention is the distribution of free samples. Consumers will be able to see it in the future when choosing a shop, will be ready to acquire any product. At this stage you can use two kinds of pricing: low cost or high.

Most of the production manufacturers at the initial stage establish a low cost to attract buyers. In the end, if consumers like the product, they are willing in the future to buy it for a great price. Products series “Suite” producers immediately set up a higher cost. This strategy in marketing is called "skimming". Rich people are willing to pay a high price for a really high quality. Gradually the price will decrease, but this move will be made by the supplier to gain a larger market.


Staff evaluation: system and methods

Staff evaluation: system and methods

Personnel Assessment allows you to identify how competent the employees involved in the enterprise, and it is the performance of their work – the most significant factor affecting the efficiency of the company. To clarify the impact of performa...

How to start your own business: important aspects.

How to start your own business: important aspects.

Many people, tired of working for someone else, are increasingly thinking about how to start your own business. Someone wants to open a salon, someone store, and someone enough and vegetable stalls. Before you throw in the pool with his head, it is i...

business activities. its essence and basic functions

Business activities. its essence and basic functions

The Entrepreneurial activity of the citizen – is undertaken at your own risk and independent activity, which aims to systematically profit through the sale of works, goods, services, use of the property. The citizen engaged in such activities, ...

We Continue to consider the life cycle of products. The second phase – growth. At this step, the manufacturer's profit continues to increase, but more rapidly. This is due to the fact that those people who have already bought the product and start to buy it again. But the firm does not stop and continues to make high advertising costs, gaining even more attention of consumers. And the novelty of buying an increasing number of people, as it becomes more known. Here plays a role not only advertising, but also the recommendations of consumers who have tested the product. Therefore, the manufacturer receives more net income.

What other processes of the product life cycle happen? It is at this stage often active in the fight enter the competition. And the firm has to invent new methods of retaining customers. Alternatively, you can slightly reduce prices, expand the range of goods (for example, shampoo against dandruff, for men, for hair, etc.), to create a creative advertising, etc.

Product Life cycle includes a stage of maturity. It profit the manufacturer receives for the account of repeat purchases by consumers of goods. Covered segment of the market practically does not change. The item has taken a stable position in the market, it is well known to the General public. The attacks of competitors has little impact on the policy of the organization. But the profits of the manufacturer has not increase and sometimes start to fall. He can still use a variety of innovative actions, for example, to find a new use for the product. Advertising no longer has a great effect on the consumer, because the client base developed. To increase the cost of the firm can make the appearance on the market of a strong competitor. In this case, the manufacturer lists a high cost of advertising and looking for new ways of enhancing consumer demand.

The Life cycle of the product ends with a recession. At this stage it is important to decide whether to continue stimulating demand or withdraw the product from production. In the case of a high cost firm removes the product from the market. But if the manufacturer sees that the profit from sales is still quite high, he continues to support the demand, inventing all new and new marketing moves.


Comments (0)

This article has no comment, be the first!

Add comment

Related News

Direct sales: what is the secret?

Direct sales: what is the secret?

 to order this product was in demand, manufacturers spend a lot of money. Advertising, promotion of goods by other methods is not always effective. One of the options – direct sales, which began to develop actively and ...

Competitive strategy is a comprehensive plan of action

Competitive strategy is a comprehensive plan of action

At the beginning of the term “strategy” was only used in the military field. He meant the art of the commander, the ability to control military action, to develop and, of course, to direct the movement of troops. Subse...

Competition and monopoly, their characteristics

Competition and monopoly, their characteristics

 Competition and monopoly – related economic concepts. They are often even referred to as antonyms, as signs of signs opposite one another. Every manufacturer would like to be a monopolist in its market, but it is possi...