The product life cycle
(PLC) is a model that describes the stages a product goes through from
conception to retirement. Understanding the PLC can help companies plan their
marketing and business strategies, as well as identify areas where they can
improve their products. Here are the features of each stage of the PLC:
- Introduction stage:
-The product is new to the market
-Low sales and high marketing and promotion
costs
-Limited distribution channel.
-Lack of customer awareness and understanding
of the product
- Growth stage:
-Rapid increase in sales and market share
-Expansion of distribution channels
-Increase in production to meet demand
-Higher profits
- Maturity stage:
-Slowing sales growth
-Stabilization of market share
-Competition intensifies
-Focus on cost control and product improvement
- Decline stage:
-Decreasing sales
-Loss of market share
-Obsolescence or saturation of the market
-Discontinuation or repositioning of the
product may be necessary
It is important to note that not all
products will progress through all the stages of the PLC and some may skip
stages or cycle back to earlier stages. The PLC provides a framework for companies
to analyze their products and make informed decisions about their future.
Understanding the different stages of the PLC can help companies to optimize
their marketing strategies and improve their products to maximize their
potential.
