Article relating Who wants to live forever? INTERNATIONAL MARKETING PRESENTED BY M.BHARATHI MBA
CONTENTS <ul><li>what is international product life cycle </li></ul><ul><li>Stages in product life cycle </li></ul><ul><li>Article relating to international product life cycle </li></ul><ul><li>conclusion </li></ul>
Product life cycle <ul><li>A product life cycle refers to the time period between the launch of a product into the market till it is finally withdrawn. In a nut shell, product life cycle or PLC is an odyssey from new and innovative to old and outdated!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. </li></ul>
Stages in product life cycle <ul><li>Introduction Stage: </li></ul><ul><li>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. Results of the test market are used to make correction if any and then launched into the market with various promotional strategies. Since the product has just been introduced, growth observed is very slight, market size is small and marketing cost are steep (promotional cost, costs of setting up distribution channels). Thus, introduction stage is an awareness creating stage and is not associated with profits! </li></ul>
<ul><li>Growth Stage Once the introductory stage goes as per expected, the initial spark has been set, however, the fire has to be kindled by proper care. The marketer has managed to gain consumers attention and now works on increasing their product's market share. As output increases, economies of scale is seen and better prices come about, conducing to profits in this stage . </li></ul>
<ul><li>Maturity Stage </li></ul><ul><li>This stage views the most competition as different companies struggle to maintain their respective market shares. The cliché 'survival of the fittest' is applicable here. Companies are busy monitoring product's value by the consumers and its sales generation. Most of the profits are made in this stage and research costs are minimum. </li></ul>
<ul><li>Decline Stage After a period of stable growth, the revenue generated from sales of the product starts dipping due to market saturation, stiff competition and latest technological developments. The consumer loses interest in this product and begins to seek other options. This stage is characterized by shrinking market share, dwindling product popularity and plummeting profits. This stage is a very delicate stage and needs to be handled wisely. </li></ul>
<ul><li>Introduce Your Product To The Market </li></ul><ul><li>The first component is fairly self-explanatory; when a new product is introduced, market gain tends to be very slight, and it is almost impossible to spot any kind of emerging patterns in demand. Depending on how you launch the software, marketing costs may be high, and it is unlikely that there are any profits as such. After the creation and subsequent release of your software, this often boils down to gritting your teeth and waiting. If this stage doesn't lead into the next, then it may be time to jump ship. </li></ul>Who wants to live forever? (PLC)
Growth <ul><li>The growth stage exhibits a rapid increase in both sales and profits, and this is the time to try and increase your product's market share. By now you should be seeing where your demand is coming from, and which of your efforts are worth spending time and energy on. With a little bit of luck, you might even have knocked some of the competition out of the way too! </li></ul>
<ul><li>Decline Doesn't Equal Death </li></ul><ul><li>The final stage in the life cycle is the decline. This doesn't necessarily mean that it's time to abandon your product altogether, but rather that the introduction of new strategies might be in order. These could include new versions, new distribution methods, price reductions, in short anything that will inject a little life into the cycle. </li></ul>
<ul><li>The advantages of the product life cycle concept speak for themselves. Once you've applied this model to your software, there are an unlimited number of options and strategies that may be implemented, according to the specifics of your software and its' current stage in the life cycle. For example, you may wish to considering product life cycle acceleration strategies, or at the very least recognise where you are, and what lies ahead. Before responding to any of the stage characteristics, don't forget to consider the external factors, particularly in response to the decline phase. My own favourite for analysing external factors is the PEST analysis; Political, Economic, Social and Technological - between them they pretty well cover the whole lot. Take all of this information into account before jumping to any conclusions. </li></ul>Remember The External Factors
<ul><li>For example, you may wish to considering product life cycle acceleration strategies, or at the very least recognise where you are, and what lies ahead. Before responding to any of the stage characteristics, don't forget to consider the external factors, particularly in response to the decline phase. My own favourite for analysing external factors is the PEST analysis; Political, Economic, Social and Technological - between them they pretty well cover the whole lot. Take all of this information into account before jumping to any conclusions. </li></ul>
CONCLUSION <ul><li>Application of product life cycle is important to marketers because via this analysis they can manage their product well and prevent it from incurring losses. A well-managed product life cycle leads to rise in profits and does not necessarily end. Product innovations, new marketing strategies ,etc. keeps the product appealing to customers for a very long period of time. Hope this article on product life cycle theory was informative and helpful! </li></ul>
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