Companies normally reformulate their marketing strategy several times during a Product Life Cycle Economic conditions changes, competitors launch new assaults , and the product passes through new stages of buyer interest and requirements. Consequently , a company must plan strategies appropriate to each stage in the product’s life cycle. The company hopes to extend the Product’s life and profitability, keeping in mind that the product will not last forever .
The product life cycle ( PLC) is a important concept that provides insight into a product’s competitive dynamics.
Stages in the Product life cycle
We can now focus on the product life cycle to say that a product has a life cycle is to assert four things:
- Product have limited life.
- Product sales pass through distinct stages, each posing different challenges, opportunities, and problem to the seller,
- Profit rise and fall at different stages of the product life cycle .
- Product require different marketing , financial , manufacturing , purchasing, and human resource strategies in stage of their life cycle.
Product life cycle portrays the sales history of a typical product as following a bell- shaped curve. this curve is typically divided into four stages introduction, Growth, Maturity and Decline.
- Introduction : A period of slow growth as the product is introduced in the market, profit are non existent in this stage because of the heavy expenses incurred with product introduction.
- Growth : A period of rapid market acceptance and substantial profit improvement.
- Maturity: A period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. profit stabilize or decline because of increased marketing outlays and against competition.
- Decline: The period when sale show a downward drift and profit erode.
It is often difficult to designate where each stage begin and ends. usually the stages are marked where the rate of sales Growth or decline becomes pronounced .