Product life cycle is considered a concept which provides companies with in-depth information about the product’s dynamics but which are competitive. It is a known fact that the companies several times during the product life cycle reformulate their marketing strategies. Why do they do that, well because sometimes it happens that the economic conditions are changed, new assaults are launched by the competitor or the product is passed through new stages of the customers’ requirements and interests. It is considered a must that the company should plan appropriate strategies that can be connected with the product life cycles each stage. The company needs to extend the product’s life along with its profitability, but they must remember that their product is not going to last forever (Kotler, 1997).
All in all it is to suggest that the product has a life cycle which asserts four things and these four things are as follows:
Limited Life: as it is a known fact that the products have a limited life, i.e. it starts with the product’s introduction within the market, it starts to grow when it is in demand then it reaches it maturity level and then it starts to decline when the products demand starts to decline (Sandhusen, 2000).
Different Stages: the sales of the product passes through different stages and usually these stages poses different kinds of challenges, opportunities and problems for the seller of the product. For example, the different challenges the seller it has to face when the product is in its growth stage like should the seller launch its product with mass-market strategy or single-niche strategy. (Sääksvuori & Immonen, 2005)
Rise & Fall of Profits: it is a known fact that the profits of the product increase and decrease at product’s different life cycle stages. For example in the maturity stage the profits of the product usually stabilize or sometimes decline due to the rise in the marketing outlays which helps the company to protect and defend the product against competition in the market (Sandhusen, 2000).
Different Strategies: in each of the product’s life cycle stage the product needs different marketing, purchasing financial, manufacturing, and human resource strategies. For example, in the introductory stage the product would need a different marketing strategy because the sales growth of the company at that stage is low; it would need to use different tactics to bring in customers (Sääksvuori & Immonen, 2005).
Kotler, P (1997), Marketing Management: Analysis, Planning, Implementation and Control. Prentice Hall
Sääksvuori, A & Immonen, A (2005), Product Lifecycle Management. Birkhäuser
Sandhusen, R L (2000), Marketing. Barron’s Educational Series