In order to gain more shelf space from the retailers firms need to implement different promotional activities to attract their attention. For instance, consumer products such as facial cleansers have shorter life cycles compared to business products like fax and copy machines.
They may introduce new products features and the market can expand.
Apple have included both specification and features enhancements in the iPhone 3GS. As asserted by Pessemier promotional campaign only focuses more on reminder advertising than on new theme, since most buyers a loyal on particular brand or company. This leads to no possibility for differentiation of the product between competitors.
The product life cycle concept is useful for monitoring sales results over time and comparing them to those of products having a similar life cycle and therefore helps marketing managers to plan future marketing strategies to deal with the challenges. When the new product satisfies the market, it enters the second stage of product life cycle.
Retain the product at reduced costs and try to innovate with respect to product uses. In addition, a product also helps create long term relationships between an organization and its customers because once the customers are genuinely satisfied with the product, they may be loyal to that particular brand of the product and continue to patronize it again in the future.
The profits increase during the growth stage as the promotion costs are spread over a large volume and the manufacturing cost decrease. The competition during this stage is highly rigorous as the competing products may be highly similar at this point, thereby increasing the complexity of differentiating the product.
During this phase the sales of the product is generally low till consumers become responsive of the product and its features. In this stage, the company needs to commit to spending a lot of money on the distribution and promotion in order to inform the customers of the new product and get them to try it.
This stage refers to the period when the product is introduced in the market. As the competition increases firms may have to incur additional promotional costs in order to make the consumers aware of the differentiating attributes of the product offered by the firm as opposed to that of the competitors.
This hindrance restricts the early majority purchases. A product life cycle mainly consists of below mentioned four stages.
According to Hofer along with the introduction and decline stage, the maturity stage of the Product Life Cycle is where a major change in strategy is required. Throughout our lives, products play a key role in satisfying not only the needs and but also the desires of consumers.
Besides that, product line size becomes more important during the maturity stage. The last stage in product life cycle is the decline stage.Life Cycle is the course that a product’s sales and profits take over in lifetime (Kotler, ).
The Brand that I will be discussing is Jack Daniel’s Distillery, Lem Motlow Prop, Inc. Jack Daniel’s product development was started by Jasper Newton “Jack” Daniel in in Lynchburg, Tennessee. Although the company was founded in [ ].
Definition Of A Product Life Cycle Marketing Essay. Print Reference this.
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Definition of a Product Life Cycle. define what a product life cycle is. Free product life cycle papers, essays, and research papers. A free marketing essay on the subject of the product life style - view, print and download to help you with your studies.
The Stages Of Product Life Cycle Marketing Essay. Print Reference this. Disclaimer: The product life-cycle concept indicates as to what can be expected in the market for a new product at various stages.
i.e., introduction, growth, maturity and decline. Thus, the concept of product life-cycle can be used as a forecasting tool. It can alert. Free Essay: Flowchart 1 is an overview of the Production Cycle.
The Production Cycle is a recurring set of business activities and related data processing.Download