Assignment Product Life Cycle Essay

Each point of intersection will pose a life cycle. Using examples, flesh out distributively deliver in the merchandise Life make pass outlining the possible challenges and strategies which may be employed to sustain the sales and profitability of the product.What is a carrefour?A product is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy the customer wants or needs. A product is more than than just a tangible goods, it is a service (haircuts, home repairs etc) or idea. However, in marketing product is not just looked at as roughlything that is tangible, solely it allow for communicating with the targeted audience on matters such as packaging, branding, highlighting the product tangible benefits, the massaging of the customers ego as to why they should have a jumpicular product.Product can be viewed at three levels, such as Core Product it addresses what the buyer is really buying, the Actual Product which fe atures characteristic such as quality, brand, design etc., and the Augmented Product it is the additional consumer services and benefits that atomic number 18 construct around the core and actual product, which includes things as the afterwards sale service, installation, warranty etc.A Product can also be divided in two main classification based on the types of consumer that used them. These classifications atomic number 18 Consumer Products which are bought by final consumers for personal, and Industrial products which are those purchased for further processing or for use in the production of other goods and services. For example, dredge that is used as an ingredient in the making of pastry like bun, bread etc.The Product Life CycleThe Product Life Cycle (PLC) is a useful tool employed by marketers to know and determining at what stage a product is in its life. Most Product Life-Cycle curves are portrayed as bell-shaped (See figure below).The product life cycle has four ( 4) very clearly defined stages, each with its own characteristics that mean various things for business that are trying to manage the life cycle of their particular products.1.Introduction Stage This stage of the cycle could be the near expensive for a company launching a new product. It is a period of slow sales growth as the product is introduced in the market. Profits are non-existent because of the baleful expenses of product introduction, although it will be increasing as the product moves on to the growth stage.2. Growth Stage The growth stage is typically characterized by a period of rapid market acceptance and substantial profit improvement. strong growth in sales and profits, and because the company can start to benefit from economies of exceed in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for the company to embellish more money in the promotional activity to maximize the potential of this growth sta ge.3. Maturity Stage A slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits stabilize or decline because of increased competition. During this stage the aim of the manufacturer is now to maintain the market share they have built up by consider any product modifications or improvements to the production process which might picture them a competitive advantage. During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.4. Decline Stage Sales show a downward wave and profits erode. While this decline may be inevitable, the downward drift and profit erosion maybe due to the market be coming saturated (i.e. all the customers who will buy the product have already purchased it) or because the consumers are switching to a different type of product.The idea of the product life cycle has been around for some time, and it is an important principle manufacturers need to understand in order to make aprofit and stay in business. However, the key to successful manufacturing is not just to understand the product life cycle, but to proactively managing products throughout their lifetime, applying the appropriate resources and sales and marketing strategies, depending on what stage products are at in the cycle. Let us now look at the possible challenges and strategies for each stages of the product life-cycle.Marketing Strategies Introduction StageThe first of the four product life cycle stages is the Introduction Stage, which a new product is first distributed and do available for purchase. Any business that is launching a new product must decide when to enter the market an d needs to appreciate that this initial stage could require significant investment, increasing awareness of the product through effective marketing and promoting, and also low pricing strategies maybe employed to attract customers and give the new product the best chance of achieving products success. For example, a cell phone manufacturer with new technology may introduce a cell phone with basic features at reduced prices in hopes of gaining lots of new customers.Challenges of the Introduction StageSmall or no market When a new product is launched, there is typically no market for it, or if a market does exist it is likely to be very small. Naturally this bureau that sales are going to be low to start off with. There will be occasions where a great new product or fantastic marketing campaign will create such a buzz that sales take off straight away, but these are generally special cases, and it often takes time and effort before most products achieve this kind of momentum.High cos ts Very few products are created without some research and development, and once they are created, many manufacturers will need to invest in marketing and promotion in order to achieve the kind of requirement that will make their new product a success. Both of these can cost a lot of money, and in the case of some markets these costs could solve into many millions of dollars. Losses, Not Profits With all the costs of getting a new product to market, most companies will see negative profits for part of the Initial Stage of the product life cycle, although the amount and duration of these negative profits does differ fromone market to another. Some manufacturers could start showing a profit quite quickly, while for companies in other sectors it could take years.