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Product Life Cycle Stages Explained
Product Life Cycle Stages Explained
Product Life Cycle Stages Explained
Product Life Cycle Stages Explained
Product Life Cycle Stages Explained
Product Life Cycle Stages Explained
Product Life Cycle Stages Explained
Product Life Cycle Stages Explained
Product Life Cycle Stages Explained
Product Life Cycle Stages Explained
Product Life Cycle Stages Explained
Product Life Cycle Stages Explained
Product Life Cycle Stages Explained
Product Life Cycle Stages Explained
Product Life Cycle Stages Explained
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Product Life Cycle Stages Explained

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The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular …

The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products:
- Introduction
- Growth
- Maturity
- Decline

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  • 1. ProductLifeCycleStages.com
  • 2. ProductLifeCycleStages.com
  • 3.  This initial stage require significant investment ProductLifeCycleStages.com
  • 4.  Challenges of the Introduction Stage ◦ Small or no market: start with low sales ◦ High costs: invest in R&D, marketing and promotion ◦ Losses, Not Profits: negative profits Benefits of the Introduction Stage ◦ Limited competition: the lack of direct competition is an advantage ◦ High Price: new product price can be above market price ProductLifeCycleStages.com
  • 5.  Product Life Cycle Management ◦ All about building the demand and establishing the market ◦ Emphasis on promotion, production and developing distribution channel Photo: flickr/AlainDurand ProductLifeCycleStages.com
  • 6.  The key stage for: ◦ Establishing a product’s position ◦ Increasing sales and ◦ Improving profit margins Requires: ◦ Development of consumer demand ◦ Reduction of manufacturing costs ProductLifeCycleStages.com
  • 7.  Challenges of the Growth Stage ◦ Increasing Competition: from new manufacturers ◦ Lower Prices: to achieve the desired increase in sales ◦ Different Marketing Approach: to make the most of the growth potential Benefits of the Growth Stage ◦ Costs are Reduced: through economies of scale ◦ Greater Consumer Awareness: leads to the sales increase ◦ Increase in Profits: both in overall amount and profit margin ProductLifeCycleStages.com
  • 8.  Product Life Cycle Management ◦ Typically profits are highest during the Growth stage ◦ Necessary to reinvest in marketing and promotional activity Photo: flickr/Promoview Marketing Promocional ProductLifeCycleStages.com
  • 9.  The primary focus is to maintain market share ProductLifeCycleStages.com
  • 10.  Challenges of the Maturity Stage ◦ Sales Volumes Peak: the market becomes saturated ◦ Decreasing Market Share: challenge to maintain market share ◦ Profits Start to Decrease: less market share, less profit Benefits of the Maturity Stage ◦ Continued Reduction in Costs: economies of scale & production efficiency ◦ Increased Market Share Through Differentiation: innovative marketing campaigns or diverse product features ProductLifeCycleStages.com
  • 11.  Product Life Cycle Management ◦ Innovation will maintain or even increase market share Photo: flickr/Vermin Inc ProductLifeCycleStages.com
  • 12.  Demonstrated by the fall in both sales and profits Opportunities to continue making profit ProductLifeCycleStages.com
  • 13.  Challenges of the Decline Stage ◦ Market in Decline: difficult to prevent ◦ Falling Sales and Profits: to slow this fall by trying and increasing market share ◦ Product Withdrawal: before losing money Benefits of the Decline Stage ◦ Cheaper Production: if able to reduce costs ◦ Cheaper Markets: to look to new, cheaper markets ProductLifeCycleStages.com
  • 14.  Product Life Cycle Management ◦ In the Decline stage, a product can still be viable ◦ Successful manufacturers focus on effective product life cycle management Photo: flickr/Michael P. Whelan ProductLifeCycleStages.com
  • 15. www.ProductLifeCycleStages.com

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