Product Life cycle, 4 stages of product life Cycle
Summary
TLDRThis video explores the concept of the product life cycle, detailing its four stages: introduction, growth, maturity, and decline. It explains how products evolve from market launch to eventual discontinuation, influenced by factors like competition and consumer demand. The example of typewriters illustrates this cycle, showing how technological advancements can lead to a product's decline.
Takeaways
- 🔍 The product life cycle is the duration from a product's introduction to its removal from the market.
- 🚀 Products may stay in the market for a long time or be discontinued due to factors like saturation, competition, and decreased demand.
- 📈 The product life cycle includes four stages: introduction, growth, maturity, and decline.
- 💡 Introduction stage involves significant investment in advertising to create awareness of the product's features and benefits.
- 📊 Growth stage is characterized by a rise in sales, where consumer demand increases and the market expands.
- 💰 Maturity stage is the most profitable, with increased production volume and reduced costs, but sales growth slows down.
- 🛠️ Companies may reduce marketing in the maturity stage and start developing new products for different market segments.
- 📉 Decline stage is inevitable, with rapid drops in sales and changing consumer behavior, leading to eventual discontinuation.
- 🔧 The concept of the product life cycle is used by management and marketing to decide on strategies like advertising, pricing, and market expansion.
- 📝 An example of the product life cycle is the typewriter, which was replaced by newer technologies like computers and mobile devices.
- 👍 The video encourages viewers to like, subscribe, and download more information from the provided link.
Q & A
What is the product life cycle?
-The product life cycle refers to the period from when a product is introduced to consumers until it is removed from the market. It includes various stages such as introduction, growth, maturity, and decline.
Why is the product life cycle important for management and marketing departments?
-The product life cycle is important for management and marketing departments as it helps them decide when to increase advertising, reduce prices, expand to new markets, or redesign packaging based on the product's current stage in the cycle.
What are the four generally accepted stages of the product life cycle?
-The four generally accepted stages of the product life cycle are the introduction stage, growth stage, maturity stage, and decline stage.
What happens during the introduction stage of the product life cycle?
-During the introduction stage, a product is launched into the market with substantial investment in advertising and marketing to make consumers aware of the product's features and benefits.
How does the growth stage differ from the introduction stage in the product life cycle?
-In the growth stage, there is a gradual rise in sales, and at some point, a significant increase in consumer demand occurs, leading to a takeoff in sales. Companies may need to heavily invest in advertising and promotion to compete with rivals.
Why is the maturity stage considered the most profitable in the product life cycle?
-The maturity stage is considered the most profitable because production volume increases while the costs of producing and marketing decline. Sales growth slows, indicating a largely saturated market.
What actions do companies typically take during the maturity stage of the product life cycle?
-During the maturity stage, companies may reduce marketing efforts, focus on cost reduction, and start developing new or alternative products to reach different market segments.
What factors contribute to the decline stage in the product life cycle?
-Factors contributing to the decline stage include market saturation, increased competition, decreased demand, and dropping sales, which eventually lead to the product being discontinued from the market.
Can you provide an example of a product that has gone through the product life cycle?
-An example is the typewriter, which grew in popularity in the late 19th century but was eventually replaced by electronic technologies like computers, laptops, and mobile devices, causing a drop in demand and revenue.
How can consumers' behavior change during the decline stage of the product life cycle?
-During the decline stage, consumer behavior changes as there is decreasing demand for the product. Sales drop rapidly, and the product may eventually be discontinued from the market.
What does the video suggest for those interested in learning more about the product life cycle?
-The video suggests that interested viewers can read more details or download a PDF by following the link provided in the video description.
Outlines
🌟 Introduction to Product Life Cycle
This paragraph introduces the concept of the product life cycle, explaining it as the duration from when a product is introduced to consumers until it is removed from the market. It highlights that products go through continuous stages, from launch to discontinuation, influenced by factors like saturation, competition, and decreased demand. The management and marketing departments of companies use this concept to determine strategic actions such as increasing advertising, reducing prices, expanding to new markets, or redesigning packaging.
📈 Understanding the Stages of Product Life Cycle
This paragraph delves into the four generally accepted stages of the product life cycle: Introduction, Growth, Maturity, and Decline. It describes the Introduction stage as a period of significant investment in advertising and marketing to create consumer awareness. The Growth stage is characterized by a rise in sales and increased consumer demand, necessitating heavy investment in advertising to compete. The Maturity stage is the most profitable, with declining costs and slowing sales, leading companies to reduce marketing and develop new products. The Decline stage is inevitable, with rapidly dropping sales and consumer behavior changes, ultimately leading to product discontinuation.
🔍 Case Study: The Evolution of the Typewriter
This paragraph provides a historical example of the product life cycle using the typewriter. Initially introduced in the late 19th century, typewriters experienced growth in popularity due to their technological advancements in ease and writing accuracy. However, the advent of new electronic technologies like computers, laptops, and mobile devices quickly replaced typewriters, leading to a decline in their revenues and demand. This example illustrates the typical progression of a product from introduction to decline.
Mindmap
Keywords
💡Product Life Cycle
💡Stages of the Product Life Cycle
💡Introduction Stage
💡Growth Stage
💡Maturity Stage
💡Decline Stage
💡Market Saturation
💡Advertising
💡Competition
💡Demand
💡Discontinuation
💡Typewriter
Highlights
Introduction to the concept of the product life cycle and its stages.
Explanation of how the product life cycle affects the market presence of products.
Definition of the product life cycle as the period from product introduction to market removal.
Importance of the product life cycle in strategic decision-making for management and marketing.
Description of the four stages of the product life cycle: Introduction, Growth, Maturity, and Decline.
Details on the Introduction stage, including significant investment in advertising and market awareness.
Growth stage characteristics, such as a rise in sales and the need for heavy advertising to compete.
The Maturity stage as the most profitable, with increasing production volume and decreasing costs.
Strategies companies adopt during the Maturity stage, like reducing marketing and developing new products.
Inevitability of the Decline stage due to market saturation and changing consumer demands.
The rapid drop in sales and eventual discontinuation of products in the Decline stage.
Historical example of the product life cycle using the typewriter and its replacement by modern technology.
The impact of technological advancements on the product life cycle of the typewriter.
Encouragement for viewers to read more details or download a PDF for further information.
Invitation for viewers to like the video and subscribe to the channel for more content.
The role of consumer satisfaction in the repeat purchase of products during the Growth stage.
Market expansion and new customer awareness as key factors in the Growth stage.
The length of the Maturity stage varying depending on the product and brand longevity.
Coca-Cola as an example of a brand with an extended Maturity stage.
Transcripts
hi welcome to education leaves
in this video i am going to discuss what
is product life cycle
stages of the product life cycle and
example of the product life cycle
let's start the video if you look at any
new or old appliance in your home
you will notice that the product is
still in the market or it has
discontinued by the manufacturer
that means you are experiencing
different stages of the product life
cycle
this process happens continuously to
every product into the market
from the launching the product all the
way through decline stages and eventual
discontinuation
so what is product life cycle the term
product life cycle refers to the time
period a product is introduced to
consumers
until it's removed from the market some
of the products may stay in a long
maturity state
all products eventually phase out of the
market due to several factors including
saturation
increased competition decreased demand
and dropping sales
this concept is used by the management
and marketing department of companies
as a factor in deciding when it is an
appropriate time to increase advertising
reduce prices expand to new markets
or redesign the packaging
stages of the product life cycle
now look at the product life cycle
diagram
y-axis represents sales volume and the
x-axis represents
time there are four stages that are
generally accepted in a product life
cycle one
introduction stage two growth stage
3 maturity stage 4.
decline stage let's understand each
stage
separately introduction stage
after successfully developing a product
first stage is the introduction
where the product is being launched into
the market
this stage basically includes a
substantial investment in advertising
and marketing
focused on making consumers aware of the
products features and its benefits
in the introduction stage the company is
first able to get a sense of how
consumers respond to the product
if they like it or not and how
successful it may be
growth stage after successfully
introducing the new product
a gradual rise in its sales curve can be
seen
at some point in this rise a significant
increase in consumer demand occurs
and sales started to take off if
competition for the product becomes high
the company have to heavily invest in
advertising and promotion to beat out
competitors
as a result of the product sales growth
the market itself tends to expand
more new customers are becoming aware of
the product and trying it
if the customers are get satisfied with
the product
they will buy it again and again
maturity stage
this is the most profitable stage of the
product life cycle
as the production volume increasing the
costs of producing and marketing decline
also its sales tend to slow that
indicating a largely saturated
market companies will reduce the
marketing
and starts to develop new or alternative
products to reach different market
segments
longer or shorter maturity stage
depending on the product
for some brands the maturity stage is
very drawn out
an example of that coca-cola
decline stage although companies will
hardly try to keep the product alive in
the maturity stage
as long as possible the decline stage
for every product is unavoidable because
of the deletion of the product from the
market
in this stage of the product life cycle
product sales drop rapidly and consumer
behavior changes
as there is decreasing demand for the
product
eventually the product will be
discontinued from the market
let's see an example of the product life
cycle
when the typewriter first introduced in
the late 19th century
typewriters grew in popularity there's a
technology that improved ease and
writing accuracy
however new electronic technology like
computers
laptops and even mobile has quickly
replaced typewriters
causing their revenues and demand to
drop off
if you want to read in details or
download the pdf
go through the link in the description
like the video
and don't forget to subscribe to my
channel
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