Life Cycles Of Products Essay

1612 words - 6 pages

Life Cycles of Products The definition of a product is "anything that is capable of satisfying
customer needs", this includes both physical products, like cars, cell
phones, machines, as well as services like banking, and insurance.
Businesses manage and modify their products over time so that they
constantly meet the changing demands of their customers, the methods
used to manage a number of brands and product lines is known as
Portfolio Managing. The different stages through which these
individual products develop in time in terms of the sales they
generate is known as Product Life Cycle.

A product life cycle is based on the biological life cycle. For
example, when a seed is planted in the soil, it is the introduction
phase, then it starts to sprout, which is the growth stage, the next
stage is maturity, where it grows leaves and roots, finally after a
long period it begins to shrink and eventually dies out, which is the
decline stage. In theory, a product goes through the same stages.

After a period of development it is introduced or launched into the
market; it gains more and more customers as it grows; eventually the
market stabilizes and the product becomes mature; then after a period
of time the product is overtaken by development and the introduction
of superior competitors, it goes into decline and is eventually
withdrawn. However, most products fail in the introduction phase.
Others have very cyclical maturity phases where declines see the
product promoted to regain customers.

The first stage is known as the Introduction Stage. In this stage, the
main goal of the organization is to commercialize the product, and
make potential buyers aware of its existence. At this point, the sales
generated are usually low and the profits are typically low or none at
all. Due to the fact that the company is paying a lot for advertising
and brand building, the customer pays a high price for the product.
This stage is also characterized by high distribution costs. At this
point of time the product offered is still in its most basic form. A
good example of a product in this stage currently is the new DVD
Writer for computers, which enables users to store up to five times
more information as compared to a compact disc. Currently, they are
extremely expensive, the speeds at which they can be "written" at are
relatively slow compared to the traditional compact disc. There is
also a heavy advertising campaign by manufacturers in all computer

The second stage is known as the Growth Stage. This stage is mainly
characterized, for successful products, by a tremendous increase in
sales. New customers are added while existing customers are making
repeated purchases. By now however, competitors have...

Find Another Essay On Life Cycles of Products

Introduction Essay

632 words - 3 pages to define a product life cycle life cycle because it lays the foundation for the upcoming discussion. According to Stark (2011), a product life cycle deals with the performance of a product in the market. It includes the marketing measures, timing, and costs associated with a product. This paper discusses the acceptance process, technology, and product cycles for the iPhone 5C model. The Technology Life Cycle According to Apple.Inc (2013), the

Seed Corn Industry Essay

1521 words - 6 pages measurement involving the exact product life cycles of the products in the seed corn industry due to several major factors. 1. Sales often occur over a large amount of time. 2. Today, there are thousands of hybrids used across the United States. 3. Many of the sales are limited and in fact cover a few thousand acres. (Magnier, Kalaitzandonakes & Miller, 2010) Variations of Different Product Life Cycles Through collection of data that excludes an


727 words - 3 pages delivery value. Too much newness and change may also lead to undesirable results sometimes. Where there is a degree of uncertainty in design performance levels, customer preferences, and even in the goals for the design itself have to change immediately so that the product reaches the shelves with the newness that is anticipated from every Walmart store.Can you describe a Product Life Cycles in the organization?The Walmart's products are fast

Business Cycles

756 words - 4 pages Business Cycles Business cycles are the "ups and downs" in economic activity, defined in terms of periods of expansion or recession. “Business cycles occur because disturbances to the economy of one sort or another push the economy above or below full employment. Inflationary booms can be generated by surges in private or public spending (Roomer, Christina D).” The phases of the business cycle are Prosperity Phase: Expansion or Boom, where an

How the Pricing Strategy of a Product Can Affect Revenue

1344 words - 6 pages – chocolate bars, food stuffs, household goods, etc. ( Market skimming Setting a high price for a new product and skimming maximum revenue from segments willing to pay high price. ( It is suitable for products with long anticipated life cycles .May be useful if launching into a new market. High price and low volumes skim the profit from the market. Suitable for products that have short life cycles and which will face

Product LIfe Cycle

967 words - 4 pages for a product company is a superior product development cycle. A company without such a process is fumbling in the dark.What products should be produced? When should decisions be made? Who has authority to make them? What information is needed? By clearly understanding decisions, the PLC process eliminates much of the guesswork. The result is the right product reaching the market more efficiently, product revenue, customer satisfaction, and productivity are increased. Companies can achieve competitive advantage and operational efficiency by understanding the dynamics of product life cycles and implementing a Product Life Cycle system.

Biogeochemical Cycles

2245 words - 9 pages Life on earth maintains its balance by the existence of four biogeochemical cycles, namely, the water cycle, the carbon cycle, the nitrogen cycle and the phosphorus cycle. These cycles are formed on the basis of various organic and inorganic nutrients which circulate through the cycle in different forms along these cycles. These cycles are essential because they prevent the nutrients from being depleted entirely and without these chemicals "life

Research and Development and Financial Performance of UK Manufacturing Firms

1168 words - 5 pages depends on the type of product they are producing, its geographical location, the state of the economy, the firms flexibility to produce new products, the skills and funding put into the R & D process, the Corporate Culture, whether it encourages innovation and creativity, or whether it promotes more traditional tayloristic principles. Finally, the short term and long term objectives of the firm also affect its financial performance, whether its plans are to develop new products with short life cycles to continually adapt to the changes in consumer needs, or whether to economize and focus on long term survival.

Software life cycle

966 words - 4 pages activities and work products required to develop a software system. It is important task of software engineering, which is the profession concerned with creating and maintaining software applications by applying software engineering technologies and practices.Software Life-cycle phasesThe phases a software product goes through between when it is conceived and when it is no longer available for use. The software life-cycle typically includes the

Grassland Ecology

841 words - 3 pages ability to change the fundamental human-environmental relationship that not only has been with us for millions of years but in many ways has made us who we are today.The human society before the Neolithic Revolution, consisted of small groups of hunters/ gatherers who adapted to their environment and relied on the resources available in their surroundings. Their mobile way of life was suited to the raising of small families, which kept the

Health Risk and Environmental Impact of Today’s Food

1232 words - 5 pages land bare of vegetation without wild life running free?GM food products were established to help end hunger throughout our nations. Many feel that GM food products will aid with the world's continually expanding population and to end hunger. Since the number of people on earth keeps increasing (over 6 billion, and expected to double within 50 years), and the amount of land suitable for farming and raising livestock remains constant, more food must

Similar Essays

Life Cycles Of Brands Essay

542 words - 2 pages have examples of other brands such as Polaroid, Levi Strauss to name a few, which have not lasted forever (p. 253). Similar to the product life cycle, all brands also go through their individual life cycles. The Business and Management Dictionary defines the brand life cycle into three stages. The introductory period is during which the company develops a brand and introduces it to the market. The brand faces competition from other products of a

Austrian Business Cycle Theory In The Great Depression By Mary Ruthbard

966 words - 4 pages over several months or years in an economy organized on free-enterprise principles”. These cycles have three main characteristics; expansion, recession, and depression. Expansion is known as increases in the demand for capital and consumer goods. Recession is known as the time when an economy slows down, and the level of sales and production start declining. Depression is know as the Demand for products and services decrease, forcing companies to

Study On Bicycle Market Of India

5976 words - 24 pages mode of transport in many developing countries. Until recently, bicycles have been a staple of everyday life throughout Asian countries. They are the most frequently used method of transport for commuting to work, school, shopping, and life in general. As a result bicycles there are almost always equipped with baskets and back seats.2.History of Bicycle:2.1. The Walking MachineIn 1817 Baron von Drais invented a walking machine that would help him

The Effects Of High Gas Prices

655 words - 3 pages distances to save gas.The most serious impact of high gas prices is the global recession, which was proved by the history in 1970s. The hikes of gas prices will lead chain effects and vicious economic cycles. First, the high gas prices will lead the pervasive inflation in the global economy. Facing the continuous rising prices of consumer products, people will consume less and demand high salaries. However, due to the rising prices of raw materials and