Product Life

Product life-cycle management (or PLCM) is the succession of strategies used by business management as a product goes through its
life-cycle.[1] The conditions in which a product is sold (advertising, saturation) changes over time and must be managed as it moves through its succession of stages. Product life-cycle (PLC) Like human beings, products also have a life-cycle. From birth to death, human beings pass through various stages e.g. birth, growth, maturity, decline and death. A similar life-cycle is seen in the case of products. The product life cycle goes through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. Product life cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures. To say that a product has a life cycle is to assert three things: Products have a limited life,
Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller, Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage. The four main stages of a product's life cycle and the accompanying characteristics are: Stage 1. 2. 1. Market introduction stage 3. 4. 5. 6. 1. 2. 3. 2. Growth stage 4. 5. Characteristics costs are very high slow sales volumes to start little or no competition demand has to be created customers have to be prompted to try the product makes no money at this stage costs reduced due to economies of scale sales volume increases significantly profitability begins to rise public awareness increases competition begins to increase with a few new players
in establishing market 6. 3. Maturity stage 1. increased competition leads to price decreases costs are lowered as a result of production volumes
increasing and experience curve effects 2. 3. 4. sales volume peaks and market saturation is reached increase in competitors entering the market prices tend to drop due to the proliferation of competing
products 5. brand differentiation and feature diversification is
emphasized to maintain or increase market share 6. 1. 2. 4. Saturation and decline stage 3. 4. Industrial profits go down costs become counter-optimal sales volume decline prices, profitability diminish profit becomes more a challenge of
production/distribution efficiency than increased sales
. PRODUCT DEVELOPMENT PHASE Product development phase begins when a company finds and develops a new product idea. This involves translating various pieces of information and incorporating them into a new product. A product is usually undergoing several changes involving a lot of money and time during development, before it is exposed to target customers via test markets. Those products that survive the test market are then introduced into a real marketplace and the introduction phase of the product begins. During the product Product Life Cycle Management 5 URENIO - Urban and Regional Innovation Research Unit http://www.urenio.org development phase, sales are zero and revenues are negative. It is the time of spending with absolute no return. 2. INTRODUCTION PHASE The introduction phase of a product includes the product launch with its requirements to getting it launch in such a way so that it will have maximum impact at the moment of sale. A good example of such a launch is the launch of Windows XP by Microsoft Corporation. 3. GROWTH PHASE The growth phase offers the satisfaction of seeing the product take-off in the marketplace. This is the appropriate timing to focus on increasing the market share. If the product has been introduced first into the market, (introduction into a virgin 1 market or into an existing market) then it is in a position to gain market share relatively easily. A new growing market alerts the compe4. MATURITY PHASE When the market becomes saturated with variations of the basic product, and all competitors are represented in terms of an alternative product, the maturity phase arrives. In this phase market share growth is at the expense of someone elses business, rather than the growth of the market itself. This period is the period of the
highest returns from the product. A company that has achieved its market share goal enjoys the most profitable period, while a company that falls behind its market share goal, must reconsider its marketing positionin5. DECLINE PHASE 2 Multi distribution channel is one that offers back up distribution ways. A good example is the use of retail stores and the use of Internet. The former requires a completely different distribution channel than the latter and a product usually is distributed through the former first. g into the marketplace. titions attention.

Product Life

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Product life-cycle management (or PLCM) is the succession of strategies used by business management as a product goes through its

products 5. brand differentiation and feature diversification is

production/distribution efficiency than increased sales

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