The concept is used as a tool to formulate marketing strategies appropriate to each of the stages. Concepts in product life cycle several enterprises in various geographic regions recognized that good environmental performance is an important factor for their future success and does a lot to reduce environmental impacts by treatment actions, implementation of cleaner. While some products may stay in a prolonged maturity state. The product concept is proven and is becoming more popular and sales are increasing. Product life cycle refers to the stages through which a product or a product category bypass. The product life cycle can be a useful tool in planning for the life of the product, but it has a number of limitations. The product life cycle plc concept is a wellknown marketing strategy and planning tool. Earlier works have concentrated on understanding the product life cycle in terms of factors including product life cycle stages, product life, extension of product life, and product marketing issues 5.
The concept of the product life cycle has been extended and utilized in different forms some of which is quite acceptable business practice. The plc concept can described a product class, a product form, or a brand. It describes the stages a product goes through from when it was first thought of until it finally is removed from the market. The product lifecycle plc is a wellknown marketing concept initially developed in. The content and theme of this book really will touch your heart. 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. The life cycle has four stages introduction, growth, maturity and decline. Most alert and thoughtful senior marketing executives are by now familiar with the concept of the product life cycle. In a predictive life cycle, the specifics are defined at the start of the project, and any alterations to scope are carefully addressed. Benefits and limitations of product life cycle plc. Raw materials then go through a number of manufacturing. Origins and development of the product life cycle concept digital. A guide to new product development product life cycle.
Through lcc one seeks to minimize the cost of obtaining a cer tain level of output. Products like everything else in life have a certain life cycle. Pdf a products generalized life cycle under a design. In reality, product lifecycles adopt a number of different shapes and are never smooth. Developing the product strategy via product life cycle. Acquisition practices, including the manner in which cm is specified in a contract, and the process of monitoring contractor application are evolving as the result of two interacting transitions. Lcas are used for quantitative analysis and assessment of a product s environmental impact throughout its entire life cycle. Stages of the product life cycle principles of marketing. What is project life cycle and its main characteristics. Cradle to grave true benefits of product life cycle management. The product life cycle is the process a product goes through from when it is first introduced into the market until it declines or is removed from the market.
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. Product life cycle and marketing management strategies. The concept of the product life cycle basically describes the evolution of a product, as measured by its sales over time. 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 concept is based on a simple biological analogy of stages over. Marketing researchers frequently use the product life cycle concept plc as an accepted element in theory building. Chapter lifecycle concepts, product stewardship and.
The product life cycle is an attempt to recognize distinct stages in the sales history of the product. Benefits of product life cycle management ims marketing. But outcomes of each life cycle concept are different and making decision based on all of them. The general concept of a life cycle cost is not new. You may already be familiar with a product life cycle or a plant life cycle, but i bet you didnt know that records have a life cycle too. The product life cycle is an important concept in marketing. Osland michigan state university abstract underpinnings and recognition of the product life cycle concept are found in the writings of sociologists, anthropologists, economists, and marketers of. Philip kotler the concept of life cycle of a product as from its birth to death, a product exists in different stages and in different competitive environment.
The project life cycle provides a framework for managing any. Product branding as well as the quality level is launched and intellectual property protection like trademarks and patents are received. Product life cyle the course of a products sales and profits over its lifetime is called the product life cycle. The project life cycle also allows for the gate procedure to be used. Some products are tied to specific business cycles or have seasonal factors that impact growth. As will become clear from the discussion below, the product lifecycle concept can mean different things to different researchers, hence we must be careful to define. At each stage, approval is generally required from outside the project team before proceeding to the next stage. Products require different marketing, financial, manufacturing, purchasing, and human resources strategies in each life cycle stages. The project life cycle refers to the fourstep process that is followed by nearly all project managers when moving through stages of project completion this is the standard project life cycle most people are familiar with. Pdf private labels have recorded significant growth rates worldwide, becoming a serious threat to manufacturer brands. The product life cycle plc is a modelbased approach that shows trends in product sales history, from crea tion to extinction. Electronic part life cycle concepts and obsolescence.
It is a readymade or expert prescription regarding what a marketing manager should do in different stages of the plc. Product life cycle should be studied with reference to the broad picture of demandtechnology life cycle. Product life cycle plc concept can describe a product class laundry soap, a product form powered detergents or a brand surf excel plc concept applies differently in each case product classes have the longest life cycles sales of many product classes stay in the mature stage for a long time product forms in contrast tend to have the. Chapter 2 integration of design for environmental concepts. A brief summary of starbucks history and a detailed introduction on product. Bmws concept of product life cycle there are four main periods in a product life cycle concept which begins with the introduction stage, followed by the growth stage, then.
Pdf the product life cycle theory and product line. A model which draws an analogy between the span of a human life and that of a product, suggesting that, typically, a product s life consists of four stages. The above diagram depicts a typical product life cycle. Some products may have a shorter segment in the curve or a shorter curve over all. The records life cycle describes the different stages. Origins and development of the product life cycle concept. However, the product life cycle is the perfect measure of when to say goodbye to a product and it can help marketing managers with the decision to eliminate a product from their portfolio when the sales has declined far below the market average.
In the introduction phase, the business firm tries to fabricate product awareness plus create a market for the product. 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. For products, the life cycle begins when raw materials are extracted or harvested. Starbucks is known worldwide for its highquality food products and the differentiated third place atmosphere. This is a tried and tested method for delivering projects on time, within budget and to the expected quality targets. But the essence of the product life cycle relies upon mapping the overall industry, not a particular firm or a particular product. However, a good understanding of the concept, its variations, and the. Starbucks is the market leader in the beverage industry. 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. This phenomenon of executing the testing activities in a systematic and planned way is called testing life cycle. The most simple life cycle in the industry and market area is product life cycle, which consider.
The factor of obsolescence is not dwelt upon, but in the case of products, obsolescence may not be an issue. The product life cycle theory and product line management. Freon refrigerants were invented in 1930 and introduced in a product refrigerator in 1931. Bookmark file pdf research papers product life cycle many books are offered, this book can steal the reader heart for that reason much. A business unit exists to sell products and as far as the product sales go well so is the business unit. Criticisms of the product life cycle plc the marketing. 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. The product life cycle is the concept that a product goes through several stages in the course of its life.
Lifecycle concepts, product stewardship and green engineering by kirsten rosselot and david t. Pdf application of product life cycle concept to private label. In an adaptive life cycle, the product is developed over multiple iterations, and detailed scope is defined for iteration only as the iteration begins. The case of mobile phones article pdf available in ieee transactions on engineering management 512. Ive found myself lately doing an awful lot more work in the area of product lifecycle management. Life cycle assessments lcas toyota industries is committed to establishing a reliable and efficient lca methodology in order to develop products that are environmentally conscious. Other companies become aware of the product and its. Not all products follow a smooth and predictable growth path. 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.
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