First, is the production stage, in which the product is manufactured, processed or harvested. From there, the product goes through four key phases, which comprise the life cycle: What Is a Product Life Cycle? This is the stage in which the product is introduced to the general public.
Check new design of our homepage! A Very Simple Explanation of the Product Life Cycle Theory Product life cycle theory comprises analysis of a product's life in the market from the time it has been launched to its withdrawal from the market. This article dwells on the four stages of a product life cycle MarketingWit Staff Last Updated: Mar 19, The product life cycle theory The product life cycle theory is used to comprehend and analyze various maturity stages of products and industries.
Product innovation and diffusion influence long-term patterns of international trade.
This term product life cycle was used for the first time inby Theodore Levitt in a Harvard Business Review article: Anything that satisfies a consumer's need is called a 'product'.
It may be a tangible product clothes, crockery, cars, houses, gadgets or an intangible service banking, health care, hotel service, airline service.
Irrespective of the kind of product, all products introduced into the market undergo a common life cycle. To understand what this product life cycle theory is all about, let us have a quick look at its definition.
Definition What is a product life cycle? A product life cycle refers to the time period between the launch of a product into the market till it is finally withdrawn from it. In a nut shell, product life cycle or PLC is an odyssey from new and innovative to old and outdated!
This cycle is split into four different stages which encompass the product's journey from its entry to exit from the market. Stages of Product Life Cycle This cycle is based on the all familiar biological life cycle, wherein a seed is planted introduction stagegerminates growth stagesends out roots in the ground and shoots with branches and leaves against gravity, thereby maturing into an adult maturity stage.
As the plant lives its life and nears old age, it shrivels up, shrinks and dies out decline stage. On the same lines, a product also has a life cycle of its own.
A product's entry or launching phase into the market corresponds to the introduction stage. As the product gains popularity and wins the trust of consumers, it begins to grow. Further, with increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, after some time, the product gets overpowered by latest technological developments and entry of superior competitors in the market. Soon the product becomes obsolete and needs to be withdrawn from the market. This is the decline phase.
This was the crux of a product life cycle theory and the graph of a product's life cycle looks like a bell-shaped curve. Let us delve more into this management theory. Introduction Stage After conducting thorough market research, the company develops its product.
Once the product is ready, a test market is carried out to check the viability of the product in the actual market, before it can set foot into the mass market.Jun 29, · Every product has a life cycle, which is similar, in some ways, to the cycle of life.
First, is the production stage, in which the product is manufactured, processed or harvested.
According to the PLC theory, at an early stage of a product's life cycle the product is likely to be made in a more _____ method than in its later stages.
labor-intensive According to the PLC theory, companies produce products where labor rates are high during the introductory stage of the products' cycles. A theory that accounts for changes in the patterns of trade over time by focusing on product life cycles; omparative advantage initially resides with the lead innovation nation and go to others as the product goes through its life cycle stages.
How Can Product Life Cycle MBA Theory Enable You With On-line Sales In Your Small Business? How Can Product Life Cycle MBA Concept Assistance You With On-line Sales In Your Small Business? The other working day I was speaking with an entrepreneur who marketed her wares on eBay and Amazon. The product life cycle theory is used to comprehend and analyze various maturity stages of products and industries.
Product innovation and diffusion influence long-term patterns of international trade. Most jobs are not set up to satisfy us for a lifetime. A job has a life cycle characterized by various stages.
This movement from Idealize to Devalue is different for everyone.