Product Life Cycle

life cycle of products - are certain steps that any product is held.Each of them need to use different marketing options.The duration of all stages for each individual product.This is due to the characteristics of the item, the presence of similar products and other factors.Each stage of the product life cycle can not last indefinitely, since any product eventually supplanted by a newer model.For example, black-and-white television sets in the end came out of the items, they were replaced by color.In turn, they are replaced after a few years on the LCD, and plasma display panels.

life cycle - a concept that is used for the group of goods and for any particular product.Moreover, the duration of each stage can take several days or decades.For example, any sensation can have a cycle for a week and the drug "penicillin" - for decades.Marketing purpose is to prolong the product life cycle.It can be done with the help of advertising, market research, and other methods.Price - basic variable, which depends on the life cycle.That is, in each period will use a different pricing policy.

consider the life cycle of the goods.Enter the product on the market.Demand in this case is usually quite low, so companies spend significant amounts of money on advertising.The purpose of marketing - to convey to consumers the information about the new product.It is essential that the new product was fixed on a particular segment of the market.This product is expected to reach a critical mass planned for some time.Called critical mass of sales that will ensure its viability.

Depending on the nature of the product is available on the market, will be selected pricing.If the selected segment has a large number of similar goods, and the value of the novelty will initially be low.This position will help reach more consumers.

Company can use the policy of "cherry-picking".It is used, if the market produced a new lifestyle products, such as plasma TVs.Most of paying customers happy Treat yourself to new products, and the company will receive from the release of this product is a big profit.

After entering the market comes the stage of growth.This period is due to the rapid increase in demand.The cost per unit of product, falling rapidly as production volume increases.At the moment, it is important to take the largest possible share of the market, if possible, even to become a leader.At the stage of growth is fairly easy to win a segment if consumers are offered a unique product.But a mature market requires more effort, as the increase will be due to potesnenny competing companies.In the growth stage of the product life cycle pause, as they do not survive in a competitive environment.

proceeds to step maturity.Demand becomes stable, the product is already familiar to customers.But right now, the company began to look for ways to attract new consumers of the goods, otherwise the demand will fall, and the market share will be less.

during the recession ends the life cycle of the product.It is almost inevitable for each product, other than products of first necessity.Now the company starts a real price war.There is a price reduction in order to obtain an increase in demand.With the money the company makes the new unit price.But this can not continue indefinitely.The company is forced to create a new product, which will begin its life cycle in the market and it will profit in the future.