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Define the product life cycle and for a product of your choice discuss the different stages it passes through during its existence and outline the characteristics and strategies for each stage

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Define the product life cycle and for a product of your choice discuss the different stages it passes through during its existence and outline the characteristics and strategies for each stage Every product have a beginning and have an end which means they have a life span. The stages through which individual products develop by time is called 'Product Life cycle'. The Product life cycle has four major stage which are: * Introduction Stage * Growth Stage * Maturity Stage * Decline Stage Products experience each of these stages at different times and at one point in time a firm may also have a range of different products at different stages in their life cycles. The length of the product life cycle depends on technology and new inventions. Since these are rapidly changing the life cycle of a product is getting shorter. For example from CD players where one had to buy CD's today one can easily have 4 weeks of music installed on iPods where there is no need to by CD's but simply download music from the internet. ...read more.


Price in the Introduction Stage will be either price skimming or penetration. This suite most for the perishable goods example new range of food stuffs. In this level frequent modification is still undertaken due to certain problems discovered after its launching. After consumers see that a hi-fi is worthed and suites them the product can now be classified under the Growth Stage where sales start to increase quickly and more distribution channels are establish. In creating a hi-fi system surely required a lot of research and development and tones of money where spent to pay experts on electronics to make this product. In the Introduction Stage it is not possible for the firm to cover these expenses but in the Growth Stage, the breakeven is reached and the firm start earning profits. Thus at this stage competitors will be encouraged by the profits being made and so they enter the market resulting into price reduction. New entries will result in product variety where some will try to improve on the product such as increasing the sound and providing better styles and colours to compliment the room it is put in. ...read more.


For example hi-fi's that can take more than one CD, two compartments for the cassette and the facility to record, adding a remote control, producing different sizes and increasing functions. Marketing spend has to be monitored carefully, since any significant moves are likely to be copied by competitors such as differentiation, and price reductions. Thus if industries sets minimum prices to avoid 'pyrrhic' price victory . Although this Decline Stage have not yet been reached regarding Hi-fi's surely sales have decreased once other products entered the market. Such products are CD players, iPod's, computers that can play a CD, portable CD and Radios. Hence the market is shrinking, reducing the overall amount of profit that can be shared amongst the remaining competitors. At this stage, great care has to be taken to manage the product carefully. Ultimately, depending on whether the product remains profitable, a company may decide to end the product. The more a firm takes care of the marketing mix without forgetting what the consumers are looking for, thus in a few words remaining competitive, during the product's existence the longer the product's life cycle will be. Product Odette Caruana 2nd year ...read more.

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