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The Product Life Cycle Essay

1014 words - 4 pages

The Product Life Cycle

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. This means that CD Players are moving towards the
decline stage while ipods are stepping in the Growth Stage. In this
assignment I will take a look at the product life cycle of a hi-fi
system we use at home. The introduction of hi-fi systems in the
market made other products go through the decline stage or even be
pushed out from the market because hi-fi took their place. Such
products are the redifussion, and home stereos with only cassettes and
with lower sound.

After a product such as the hi-fi system have been developed and put
on the market it is said that it goes through the Introduction
Stage. Despite the very low competition since it is a new innovation,
sales are low as consumers have to still need to get to know about the
product and its benefits over other products such as the radio. Thus
a lot of promotion is needed to inform potential customers about the
advantages and uses of the new product concept. Consumers need to
know the functions of the hi-fi, that it is run by electricity, about
the power of the sound, that they can play CD’s or cassettes and that
it still conatins a radio and how it will effect their life. In order
to bring the product at this stage surely a lot of costs such as
research and development would have been incurred, and moreover other
expenses have to be done to undergo launch promotion and set up
distribution chanels. Thus price can either be high especially with
durables as n the case with the hi-fi system, which need a high
amount of money on the 4p’s. Also the price can be be very low because
of the low demand. 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...

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