The conditions in which a product is sold advertising, saturation changes over time and must be managed as it moves through its succession of stage. Marketing management, srusti academy of management, bhubaneswar abstract. This concept is known as the product life cycle typical stages of a product life cycle include. The product lifecycle is an important tool for marketers, management and designers alike. The product life cycle is an important concept in marketing. There is however much criticism on and doubt about the applicability of the product life cycle concept as a marketing decisionmaking instrument. Products require different marketing, financial, manufacturing, purchasing, and human resources strategies in each life cycle stages. How to use the product lifecycle model smart insights. It is interesting to note that we can study the plc only when product completes its entire life. Descriptive model for the life of products in general the plcs importance to marketing decision makers is to help identify appropriate strategies and tactics for presenting a product.
The product life cycle plc refers to the notion that products have a limited period lifetime in the marketplace and that this period passes through a number of different stages, each requiring different approaches to the production, distribution, and marketing of the product. A project life cycle is the sequence of phases that a project goes through from its initiation to its closure. Lifecycle concepts, product stewardship and green engineering by kirsten rosselot and david t. Electronic part life cycle concepts and obsolescence forecasting article pdf available in ieee transactions on components and packaging technologies 234. Consequently, the life cycle concept is not wellsuited for the forecasting. Product life cycle stages and limitations of product.
The understanding of a products life cycle, can help a company to understand and realize when it is time to introduce and withdraw a product from a market, its position in the market compared to competitors, and the products success or failure. This mini project is about a study on the product life cycle of samsung galaxy in india and the. Other companies become aware of the product and its. A guide to new product development product life cycle management. Sunset decisions are based on the volume of orders, age of the product product version, strategic fit. It is clear that the use of the model has a significant impact on the success of the business. During the end stages of your product, you will see declining sales and profits. Ive found myself lately doing an awful lot more work in the area of product lifecycle management.
Explain the concepts of life cycle costing and the product. From the marketing literature three related concepts that help describe the plc are noted and discussed the fashion cycle, diffusion theory, and the product life cycle. Design for environment concept dfe is a way to systematically consider design performance with respect to environmental, health and safety objectives over the full product or process life cycle. For products, the life cycle begins when raw materials are extracted or harvested. Every product has a life cycle and time spent at each stage differs from product to product. The concept of product life cycle plc concerns the life of a product in the market with respect to businesscommercial costs and sales measures. Chapter lifecycle concepts, product stewardship and. Through lcc one seeks to minimize the cost of obtaining a cer tain level of output. The product life cycle of a style also appears in clothing as well as art, architecture, cars and other estheticbased products. We use plc as an abbreviation of product life cycle.
Marketing researchers frequently use the product life cycle concept plc as an accepted element in theory building. Product life cycle concept limitation and implications iibm lms. The theory suggests that early in a product s life cycle all the parts and labor associated with that product come from the area where it was. Stage of the product life cycle, business strategy, and. Product life cycle iowa state university extension. However,itnowseemsappropriatetotakea critical look at thisconcept to seewhat we doindeedknow, to see if welikewhat we know,and to thinkabout where wego fromhere if. How to use the product lifecycle the interaction design. Benefits of product life cycle management ims marketing. The following seven phases can be identified in a variety of product design and development projects.
Pdf the product life cycle theory and product line. The plc describes the four key stages that a product is likely to experience between its launch and its disappearance from the market. Marketing strategy articles the product life cycle is an excellent tool which can be used by business managers, strategists and marketing managers to come up with product strategies. Research in marketing as well as in strategic management indicates that the plc is likely a fundamental variable affecting business strategy. It is a strategy tool that helps companies plan for new product development and refine existing products. Pdf product lifecycle management plm is an integrated, informationdriven strategy that speeds the innovation and launch of successful products. This can help firms to reassess their objectives, strategies, and different elements of a marketing program. The characteristics of the product life cycle stages are discussed below.
This article challenges itnot just certain aspects or interpretations of the life cycle notion, but its very concept and existence. Most alert and thoughtful senior marketing executives are by now familiar with the concept of the product life cycle. Product life cycle plc product life cycle stages notes desk. The number and sequence of the cycle are determined by the management and various other factors like needs of the organization involved in the project, the nature of the project, and its area of application. The product life cycle has been described, analyzed, and annotated so often in the literature of marketing that it has become a given in the minds of many. Benefits and limitations of product life cycle april 17, 2019 by hitesh bhasin tagged with.
I cant really explain why it is getting more attention now than in the past as product lifecycle management has been a core part of product management for a long time so i. Op art fashion and the product life cycle 1265 words 6 pages. Awaking the customers from the new product and its benefits, in despite of advertising costs to gain the competition. Raw materials then go through a number of manufacturing. The concept plc is important in marketing theory and practice. It shows that product life cycle is not best tool to predict the sales. No evidence exists of the efficacy of the product life cycle concept as an instrument to develop marketing strategy. This study focuses on the importance of barriers to entry in five industries and examines the impact of industry and product life cycle stages on barriers to entry. A study on the product life cycle of samsung smartphones in. When the product has experienced its maximum growth through life cycle management strategies, it means over time the product has matured and new products in its category tend to reduce sales.
Product life cycle product life cycle is a normative and descriptive model for the life of products in general the plcs importance to marketing decision makers is to help identify appropriate strategies. As newer products and product versions are introduced to the market, older products and product versions are expected to move off maintenance and from the maintain to the sunset stage of the perkinelmer informatics product life cycle. Chapter 1 product design and development in the industrial. Life cycle costing lcc, by definition, refers to an analysis technique which encom passes all costs associated with a product from its inception to its disposal. An investigation of the product life cycle concept as an. A study on the product life cycle of samsung smartphones in india dibyajyoti mohapatra asst. A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. Cradle to grave true benefits of product life cycle management. The product life cycle theory and product line management. Product life cycle concept product life cycle concept shows a framework to spot the occurrence of opportunities and threats in a product market and the industry. Origins and development of the product life cycle concept digital. The product life cycle has been described, analyzed, and annotated so often in the literature of marketing that it has become a given in the minds of many executives. Product life cycle refers to the stages through which a product or a product category bypass.
Descriptive model for the life of products in general. The concept describes the four stages and offers some practical suggestions on how companies can use product life cycle information in their strategy development and marketing operations. The implementation of dfe into the design process is a key element of the progression towards more sustainable systems, and can lead to. This concept is used by management and by marketing professionals as a factor in deciding when it is appropriate to increase advertising, reduce prices, expand to.
It describes the stages a product goes through from when it was first thought of until it finally is removed from the market. The understanding of a product s life cycle, can help a company to understand and realize when it is time to introduce and withdraw a product from a market, its position in the market compared to competitors, and the product s success or failure. Benefits and limitations of product life cycle plc. Moreover, some real life examples are given in order to clarify the ideas. Product life cycle management plm is the succession of strategies by business management as a product goes through its life cycle. Johnson 2012 stated that product life cycle plc is a trend whereby a brand new and original product become outofdate and gradually obsolete johnson, 2012. A brief summary of starbucks history and a detailed introduction on product. A product s life cycle, abbreviated plc, consists of a series of stages, beginning with its introduction to the market and ending with its decline and eventual withdrawal from the market. The product life cycle concept indicates that the product is born or introduced, grows, attains maturity and the point of saturation in that market and then sooner or later it is bound to enter its declining stage e. In developing economies,due to limited awareness,more immediate technical support is needed to introduce the d4s concept. The product concept is proven and is becoming more popular and sales are increasing.
This concept is used by management and by marketing professionals as a factor in deciding when it is appropriate to increase advertising, reduce prices, expand to new markets, or redesign packaging. Different products have different properties so their life cycle also vary. Performing organization names and addresses defense acquisition university,9820 belvoir rd,fort belvoir,va,22060. The product life cycle plc describes the stages of a product from launch to being discontinued. The product life cycle proceeds through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. Like your life is divided into stages same as life of a product is also divided. Fmcg persisted with the use of the product life cycle concept continued to have a competitive advantage over those who did not. Starbucks is known worldwide for its highquality food products and the differentiated third place atmosphere. Meaning all products have certain length of life during which they pass through certain identifiable stages.
All products or services that your business offers will change throughout their life. Finally, this manuscript analyzes the validity and usefulness of the plc. In portraying the evolution of product at address correspondence to. Key words advertising, marketing, product life cycle, consumer buying behavior. Characteristics of the product life cycle stages and. Sunset decisions are based on the volume of orders, age of the productproduct version, strategic fit.
The product life cycle concept is currently a dominant component of marketing theory. But there are many challenges and difficulties in innovation, design and introducing a new product to a market. Also it will illustrate what choices need to be made at the decision. The term life cycle implies a welldefined life cycle as observed in living organisms, but products do not have such a predictable life and the specific life cycle curves followed by different products vary substantially. Product lifecycle management plm should be distinguished from product life cycle management marketing plcm. In business terms, the product lifecycle, in a marketing context, is all the stages of a product s life span that are related to its promotion and sales. The life cycle can be very short, as pertains to a product that is for an event, such as a christmas toy, or very long such as a watch or a car. It specifies four individual stages of a products life and offers guidance for developing strategies to make the best use of those stages and promote the overall success of the product in the marketplace.
A guide to new product development product life cycle. Product life cycle and marketing management strategies. Characteristics of the product life cycle stages and marketing implications. The product life cycle product life cycle is made based on the biological life cycle. Product life cycle stages managing the product life cycle.
Product life cycle plc is the cycle through which every product goes through from introduction to withdrawal or eventual demise. The general concept of a life cycle cost is not new. The product life cycle is the concept that a product goes through several stages in the course of its life. This progression is identified as the product life cycle and is linked with alterations in the marketing condition, consequently affecting the marketing methodology and the marketing mix definition. Nov 29, 2018 learn how you can use the product life cycle model to project changes in the perception and use of your products. This paper applies the product life cycle theory to the issue of product line management with two goals in mind. Product life cycle is a business analysis that attempts to identify a set of common stages in the life of commercial products. A product, when it is new, advances through an arrangement of stages from incubation to development, maturity, as well as decline.
Although different products have different types of life cycles, the traditional product life cycle for most products is shown in figure 1. Rink, college of business, northern illinois university, dekalb, illinois 60115. Product life cycle is the progression of an item through the four stages of its time on the market. Plm describes the engineering aspect of a product, from managing descriptions and properties of a product through its development and useful life. When used carefully, the plc concept can be a great help in developing goods marketing strategies for the different product life cycle stages. Starbucks is the market leader in the beverage industry. The maturity stage of the product life cycle in marketing is the last part, when sales decrease. The product life cycle describes the period of time over which an item is developed, brought to market and eventually removed from the market. Product life cycle definition what is product life cycle. A short product life cycle is one of the hallmarks of a fad. The plc is a conceptual representation of product ageing process. The left side of the v represents the decomposition of requirements, and creation.
This progression is identified as the product life cycle and is linked with alterations in the marketing condition, consequently affecting the marketing methodology and the marketing mix. The product life cycle theory is an economic theory that was developed by raymond vernon in response to the failure of the heckscherohlin model to explain the observed pattern of international trade. Most projects goes through similar stages on the path from origin to completion. Read more about the growth and maturity stage of a product life cycle. The concept that studies the life span of product in relation to the demand is popularly known as product life cycle. The following seven phases can be identified in a variety of product. Limitations of product life cycle plc product life cycle is criticized that it has no empirical support and it is not fruitful in special cases. It is clear that the use of the model has a significant impact on the success of the business strategy and the associated corporate performance. The product life cycle is the course of the life of a product from when the product is in development to after it has been removed from the market. The concept is based on a simple biological analogy of stages over a product s life, which is intuitively appealing, but unfortunately has limited utility in practice. May 02, 20 this video explores the path products take through their lives introductionbirth, growth, maturity, and retirementdecline. The product life cycle concept the plc represents the unit sales curve for some product, extending from the time it is first placed on the market until it is removed 10, p. The product life cycle can be divided into several stages characterized by the revenue generated by the product or range of products, such as a brand.
The end of these product life cycles does not denote failures, but marks the conclusion of an expected cycle that will be replaced and repeated by variations of other products that meet the same needs and. For the love of physics walter lewin may 16, 2011 duration. A product usually starts as a concept which, if feasible, develops into a design, then a finished product. Product life cycle shivani bhambri1 abstract product life cycle plc is the cycle through which every product goes through from introduction to withdrawal or eventual demise. The product life cycle plc concept is a wellknown marketing strategy and planning tool. Pdf impact of product life cycle stages on barriers to entry. Individual products will experience their own variation. Pdf electronic part life cycle concepts and obsolescence.
The product life cycle stages can be used for describing how products and markets work. Design for sustainability a practical approach for developing economies. What is project life cycle and its main characteristics. The concept of the product life cycle is today at about the stage that the copernican view of the universe was 300 years ago. The concept is based on a simple biological analogy of stages over a products life, which is intuitively appealing, but unfortunately has limited utility in practice. In this stage, theres heavy marketing activity, product promotion and the product is put into limited outlets in. The case of mobile phones article pdf available in ieee transactions on engineering management 512. What is the role of product life cycle in marketing. In other words the product life cycle plc is used to map the lifespan of the product such as the stages through which a product goes during its life.