Product Life Cycle Stages Essay

As consumers, we buy millions of products every year. And just give care us, these products take aim a life rhythm method. Older, long-established products eventually become less popular, while in contrast, the demand for new, more modern goods usually increases quite rapidly later on they are launched. Because most companies understand the different product life cycle compass points, and that the products they sell all have a limited lifespan, the majority of them volition invest heavily in new product development in order to make sure that their businesses continue to grow. ware Life round of drinks orders ExplainedThe product life cycle has 4 very clearly define stages, each with its own characteristics that mean different things for business that are exhausting to manage the life cycle of their particular products. penetration floor This stage of the cycle could be the most expensive for a company entryway a new product. The size of the trade for the product is sma ll, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the selling needed to launch the product can be very high, especially if its a competitive sector. Growth Stage The harvest stage is typically characterized by a strong growth in sales and get aheads, and because the company can start to benefit from economies of subdue in doing, the profit margins, as well as the overall tot up of profit, will increase.This makes it practical for businesses to invest more money in the promotional activity to maximize the potential of this growth stage. Maturity Stage During the matureness stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive judgment of conviction for most products and businesses need to invest wisely in any merchandise they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.Decline Stage Eventually, the market for a product will start to shrink, and this is whats cognize as the decline stage. This shrinkage could be due to the market turn saturated (i.e. all the customers who will buy the product have already purchased it), or because the consumers are switching to a different type of product. dapple this decline may be inevitable, it may still be possible for companies tomake some profit by switching to less-expensive production methods and cheaper markets.Product Life Cycle ExamplesIts possible to provide lessons of various products to deck the different stages of the product life cycle more clearly. Here is the example of watching recorded television and the various stages of each method1. Introduction 3D TVs2. Growth Blueray discs/DVR3. Maturity DVD4. Decline Video cassetteThe image of the product life cycle has been around for some time, and it is an important teaching manufacturers need to understand in order to make a profit and stay in business. However, the key to successful manufacturing is not just perceptiveness this life cycle, but also proactively managing products throughout their lifetime, applying the appropriate resources and sales and marketing strategies, depending on what stage products are at in the cycle.