Product life cycle

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2020-07-02 23:07:06

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The Life cycle of products – this specific stage that is any product. On each of them you want to apply different marketing options. The duration of all stages for each product individually. This is due to the product characteristics, the presence of similar products and other factors. Each stage of the product life cycle cannot continue indefinitely, since any product eventually replaced by a new model. For example, black-and-white TV eventually went out of use, they were replaced colored. In turn, they are a few years replaced by LCD and plasma televisions.

Life cycle – the term used for a group of goods for any particular product. Moreover, the duration of each stage may take several days, and decades. For example, any sensation can have a cycle within a week and the drug "Penicillin" for several decades. The aim of marketing is to extend the product life cycle. This can be done through advertising, market research and other methods. Price – the main variable that depends on the life cycle. That is, in each period you will use different pricing policies.

Let's Consider the stages of the product life cycle. Enter the product to market. The demand is usually quite low, therefore, companies spend large sums of money on advertising. Marketing goal – to convey to consumers information about the product. You want the novelty stuck on a particular segment of the market. The product needs to reach the planned critical mass for some period of time. Critical mass is called sales, which will ensure its viability.

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Depending on the kind of product available on the market, the pricing. If the selected segment has a large number of similar goods, then the cost of a new product will be low. This position will help to reach as many consumers as possible.

The Company may use policy "skimming". It applies if the market for new prestigious goods, like plasma TVs. Most paying customers will gladly pamper yourself with new products, and the company will receive from release of the product more profit.

After the market comes the growth stage. Due to this period of rapid increase in demand. Costs per unit of product, is rapidly falling, as a growing production volume. At the moment it is important to take as much market share, if possible even to become a leader. In the growth stage are fairly easy to conquer its segment, if consumers are offered a unique product. But a Mature market requires more effort because the growth will occur due to potaninia competitors. In the growth stage of the products will suspend its life cycle, as they will not survive in a competitive environment.

Going to the stage of maturity. The demand becomes stable, the product is already familiar to buyers. But right now the company is beginning to seek ways to attract new consumers, otherwise the demand will fall and market share will be less.

The downturn completes the life cycle of the product. It is inevitable for almost every product except the products of the first necessity. Now the company is starting a real price war. There is a decrease in prices in order to increase demand. The money a company produces a new item. But this cannot continue indefinitely. The company is forced to create a new product, that will begin its life cycle in the market and bring profit in the future.

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