The product life cycle theory and product line management. As a result, it is typically only employed in cases where something new or customized is being developed where the cost and value cannot easily be determined before the product is developed. The product life cycle is a marketing theory cycle or succession of strategies experienced by every product which begins with a products introduction, sometimes referenced as research and development, followed by its sales growth, then maturity and finally market saturation and decline. Firms may enjoy high profits and pay higher wages to the workers due to higher prices by introduction of new products in early stages and product developments in later stages. Since that time, discussion of the organizational life cycle have taken place within many disciplines, including management, public administration, education, sociology, psychology and marketing. Each of the articles in this special section makes a distinctive contribution to the longstanding controversy over the managerial value of the product life cycle concept. Among the 115 articles, 77 articles discussed the traditional product life cycle model mplc, and 37 articles followed the latter product life cycle concept eplc. What is project life cycle and its main characteristics. 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. The product life cycle is the concept that a product goes through several stages in the course of its life. 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. In recent years, several authors have argued about plm using a managerial or a technological view.
The aim of this study, by assuming that life cycle stage of a product represents its. The product life cycle plc is a marketing concept that describes the way the revenues from the sale of a product behave over time. The results support the use of the plc as a contingency variable during strategy formulation. Typically, the plc is drawn as a bell curve with the life cycle being divided into several stages. The most simple life cycle in the industry and market area is product life cycle, which consider. Pdf this study focuses on the importance of barriers to entry in five industries and examines the. 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. Analysts are also interested in forecasting future materialsenergy fluxes on regional and. Challenges faced by product development teams include globalisation, outsourcing, mass customisation, fast innovation and product traceability, enhancing the need for collaboration and knowledge management along the. A very simple explanation of the product life cycle theory. Product lifecycle management plm is an integrated, informationdriven. This overview is designed to put these articles into a broader perspective by analyzing the major issues of identification, forecasting, and strategy formulation encountered.
Different stages of a products life cycle require different investments and different focuses. Implications for increasing market share and roi are discussed. How to use the product lifecycle model smart insights. Pdf impact of product life cycle stages on barriers to entry.
Not all products follow a smooth and predictable growth path. At every stage of the life cycle, there are emissions of greenhouse gases and consumption of resourcesenergy. A products life cycle starts from the moment when raw materials are harvested and processed, followed by the products manufacturing, transport, usage and disposal. The product life cycle can be a useful tool in planning for the life of the product, but it has a number of limitations. It has implications for the marketing strategy of a firm as it seeks to introduce, grow and maintain market share. The product life cycle plc concept is a wellknown marketing strategy and planning tool. 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. One discussion in the literature of economics is the interaction between product life cycle and technological advancement. Frank bass offered a model to predict the product life cycle in 1969. Pdf the product life cycle theory and product line. Product life cycle and software maintenance policy help. 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.
In this stage, theres heavy marketing activity, product promotion and the product is put into limited outlets in a few channels for distribution. The four stages are shown in the table below, although decline can be avoided by reinventing elements of the product. Each stage of product life cycle can be characterized in terms of at least four aspects sales volume, amount of profits, level of promotional efforts and expenses, and degree of competition. He devised a syrup that was placed into a jug in order to be sampled at a local pharmacy in atlanta, georgia. 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.
Product life cycle an overview sciencedirect topics. It will explain the kinds of information used in analyzing product performance and identifying product strategy options. The effects of product innovation on product life cycle. On the other hand, he made a biological analogy and coined the expression product life cycle in managerial context. Recently, product lifecycle management plm has become a popular topic in. The product lifecycle plc describes the stages of a product from launch to being discontinued.
The product life cycle describes the period of time over which an item is developed, brought to market and eventually removed from the market. Benefits and limitations of product life cycle plc. Stages of the product life cycle principles of marketing. Such product strategies look at the various stages the product is in the life cycle and then come up with the appropriate strategies i initially recommend you to read the article on product life cycle and. Consumer preference, product innovation, the product lifecycle pattern. Lifecycle assessment lca also called lifecycle analysis is a tool for examining the total environmental impact of a product through every step of its life from obtaining raw materials all the way through making it in a factory, selling it in a store, using it in the workplace or at home, and disposing of it.
While some products may stay in a prolonged maturity state. Product life cycle and marketing management strategies. 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. This study empirically examines differences in strategic variables between stages of the product life cycle plc, as well as differences among the determinants of high performance across stages of the plc. International journal of product lifecycle management. The principles underlying this policy are very simple and have been established to help our customers easily choose those options that best suit their needs. A guide to new product development product life cycle. The product lifecycle plc is a wellknown marketing concept initially developed in. In a predictive life cycle, the specifics are defined at the start of the project, and any alterations to scope are carefully addressed. It is a strategy tool that helps companies plan for new product development and refine existing products. The life of most products can be divided into five key stages.
The product lifecycle plc refers to the different stages a product goes through from introduction to withdrawal the product lifecycle refers to a likely pathway a product may take. Levitt exploit the product life cycle, 1965 describing various stages a product. Stage of the product life cycle, business strategy, and. 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. This article dwells on the four stages of a product life cycle the product life cycle theory is used to comprehend and analyze various maturity stages of products and industries. Many of the articles in this quarters issue of the pragmatic address the different stages of the life cycle, all while recognizing that every companys evolution will be different and there is no onesizefitsall answer. A short product life cycle is one of the hallmarks of a fad.
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. To answer this question well take a look at all the stages of the product life cycle, and from there identify the one which fits cocacola the best. The paper analyses these studies and integrates different authors points. Product lifecycle management plm has become more important in companies providing technologies and methodologies to manage data, information, and knowledge along the whole product lifecycle. Products require different marketing, financial, manufacturing, purchasing, and human resources strategies in each life cycle stages. An explanation of the former model leads to an understanding of its perceived shortcomings, and the reason for the takeup.
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. Product life cycle shivani bhambri abstract product life cycle plc. The case of mobile phones article pdf available in ieee transactions on engineering management 512. Product life cycle plc is the cycle through which every product goes through from introduction to withdrawal or eventual demise. 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. Journal of business and retail management research jbrmr vol. Break free from the product life cycle ideas and advice. Developing the product strategy via product life cycle. Research and product development cocacola was created in 1886 by dr.
The life cycle has four stages introduction, growth, maturity and decline. This product life cycle and software maintenance policy outlines the purchase and technical support options available for various abbyy products. Project life cycles can range from predictive or plandriven approaches to adaptive or changedriven approaches. The above diagram depicts a typical product life cycle. Product life cycle theory comprises analysis of a products life in the market from the time it has been launched to its withdrawal from the market. Swan, university of alabama at birmingham the purposes of this paper are threefold. Table 1 gives the number of articles published in each category by year. The concept of the product life cycle is today at about the stage that the copernican view of the universe was 300 years ago.
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