Paulreed at 01:31, 19 September 2012

2012-09-19T01:31:40Z

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-See also [[Tipping Point]]
+See also [[Tipping Point]] and [[Product Lifecycle Management]]
 The conditions a product is sold under will change over time. The Product Life Cycle refers to the succession of stages a product goes through. Product Life Cycle Management is the succession of strategies used by management as a product goes through its life cycle.
-[edit]
-The stages
+==The stages==
-A Typical Product Life CycleProducts tend to go through five stages:
+A Typical Product Life Cycle Products tend to go through five stages:
-New product development stage
+==Management of the cycle==
 The progression of a product through these stages is by no means certain. Some products seem to stay in the mature stage forever (e.g., milk). Marketers have various techniques designed to prevent the process of falling into the decline stage. In most cases however, one can estimate the life expectancy of a product category.
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 Customers respond to new products in different ways. Diffusion of innovations theory, pioneered by Everett Rogers, and other diffusion models posits that people have different levels of readiness for adopting new innovations and that the characteristics of a product affect overall adoption.
-[edit]
+==Market evolution==
 Market Evolution is a process that parallels the product life cycle. As a product category matures, the industry goes through stages that mirror the five stages of a product life cycle:

Paulreed: Created page with "See also Tipping Point Product life cycle management From Wikipedia, the free encyclopedia. Jump to: navigation, search The conditions a product is sold under will change ov..."

2010-12-22T01:15:42Z

Created page with "See also Tipping Point Product life cycle management From Wikipedia, the free encyclopedia. Jump to: navigation, search The conditions a product is sold under will change ov..."

New page

See also [[Tipping Point]]

Product life cycle management
From Wikipedia, the free encyclopedia.
Jump to: navigation, search
The conditions a product is sold under will change over time. The Product Life Cycle refers to the succession of stages a product goes through. Product Life Cycle Management is the succession of strategies used by management as a product goes through its life cycle.

Contents [hide]
1 The stages
2 Management of the cycle
3 Market evolution
4 Technology life cycle
5 See also
6 Finding related topics
7 References

[edit]
The stages

A Typical Product Life CycleProducts tend to go through five stages:

New product development stage
very expensive
no sales revenue
losses
Market introduction stage
cost high
sales volume low
losses
high prices
Growth stage
costs reduced due to economies of scale
sales volume increases significantly
profitability
prices to maximize market share
Mature stage
costs are very low
sales volume peaks
prices tend to drop due to the proliferation of competing products
very profitable
Decline stage
sales decline
prices drop (lower prices may lead to lower value perception)
profits decline
[edit]
Management of the cycle
The progression of a product through these stages is by no means certain. Some products seem to stay in the mature stage forever (e.g., milk). Marketers have various techniques designed to prevent the process of falling into the decline stage. In most cases however, one can estimate the life expectancy of a product category.

Marketers' marketing mix strategies change as their products goes through their life cycles. Advertising, for example, should be informative in the introduction stage, persuasive in the growth and maturity stages, and be reminder-oriented in the decline stage. Promotional budgets tend to be highest in the early stages, and gradually taper off as the product matures and declines. Pricing, distribution, and product characteristics also tend to change.

Customers respond to new products in different ways. Diffusion of innovations theory, pioneered by Everett Rogers, and other diffusion models posits that people have different levels of readiness for adopting new innovations and that the characteristics of a product affect overall adoption.

[edit]
Market evolution
Market Evolution is a process that parallels the product life cycle. As a product category matures, the industry goes through stages that mirror the five stages of a product life cycle:

Market Crystalization - latent demand for a product category is awakened with the introduction of the new product
Market Expansion - additional companies enter the market and more consumers become aware of the product category
Market Fragmentation - the industry is subdivided into numerous well populated competitive groupings as too many firms enter
Market Consolidation - firms start to leave the industry due to stiff competition, falling prices, and falling profits
Market Termination - consumers no longer demand the product and companies stop producing it

[[Category:Strategy]]

Life Cycle Model - Revision history

Paulreed at 01:31, 19 September 2012

Paulreed: Created page with "See also Tipping Point Product life cycle management From Wikipedia, the free encyclopedia. Jump to: navigation, search The conditions a product is sold under will change ov..."