Product life cycle management is a tool that ensures product success in the market and helps in making strategies for a new or up graded product. The product life cycle begins at the moment the product begins to be used, sold or placed in operation, thus producing the benefits that justified the project in the first place. Product life cycle is important because through this company. Importance of testing in software development life cycle. Importance of innovative product launching and product. What is project life cycle and its main characteristics.
Product life cycle plc is the cycle through which every product goes through from introduction to withdrawal or eventual demise. The product life cycle concept is used in formulating appropriate marketing strategy and its prompt implementation. Importance of product life cycle in business includes various points to determine the marketing strategies related to the particular product. The concept of the product life cycle is today at about the stage that the.
Most projects goes through similar stages on the path from origin to completion. What is the importance of knowledge of the product life. How to use the product lifecycle interaction design foundation. This isnt to say that spending a lot of money at this stage will guarantee the products success. In a predictive life cycle, the specifics are defined at the start of the project, and any alterations to scope are carefully addressed. Introduction the construction business has lately accomplished a paradigmatic shift in its approach to structures delivery and. In this stage, theres heavy marketing activity, product promotion and the product is put into limited outlets in a few channels for distribution. Benefits of product life cycle management ims marketing. The product life cycle product life cycle is made based on the biological life cycle. Product life cycle is defined as, the cycle through which every product goes through from introduction to withdrawal or eventual demise. The above diagram depicts a typical product life cycle.
Each stage has a role in the marketing of the product. This is a tried and tested method for delivering projects on time, within budget and to the expected quality targets. Product life cycle tells about the position of a product in the market. Pdf this study focuses on the importance of barriers to entry in five industries and examines the impact of industry and product life cycle stages on. Just like everything else, product has its own life cycle too. These phases exist and are applicable to all products or. Strategies the number 1 benefit of product life cycle is that it can help you to define the strategies which can be used based on the life cycle stage. Pdf analysing the impact of the product life cycle on. Product lifecycle the life cycle concept may apply to a brand or to a category of a product. A guide to new product development product life cycle. Product life cycle shows the typical path or stage of a product.
The product life cycle plc the product life cycle is the period of time over which an item is developed, brought to market and eventually removed from the market. Chapter 9 records management revised april 18, 2006 what is the purpose of records management. The path to successful launch is fraught with challenges. Explain the importance of the project life cycle to project management. There are some major product life cycle management techniques that can be used to optimize a product s revenues in respect to its position into a market and its life cycle. Normally any strategic process has three distinct stages which are analy. Different types of industrial product life cycles must be anticipated relative to existing use systems, maintaining a leadership position and strategy changes over. Life cycle management applies to marketers, engineers, researchers and managers, because it requires different behavior depending on where a product is in its life cycle. The project life cycle also allows for the gate procedure to be used. All costs production and non production will be traced to individual products over their complete life cycles and hence individual product profitability can be more accurately measured the product life cycle costing results in earlier actions to generate revenue or to lower costs than otherwise might be considered. In an adaptive life cycle, the product is developed over multiple iterations, and detailed scope.
The concept enables the marketer in planning the entry of a new product in a chosen market. After that, you can refer to the current article for the benefits and limitations of product life cycle. Its duration maybe as short as a few months or years, depending on the product. The role of the product life cycle in marketing is mainly one of forecasting sales. The product life cycle describes the period of time over which an item is developed, brought to market and eventually removed from the market. Product life cycle and marketing management strategies. A short product life cycle is one of the hallmarks of a fad. The significance of product life cycle marketing essay. Benefits and limitations of product life cycle plc. The importance of understanding the product life cycle.
The product lifecycle is an important tool for marketers, management and designers alike. The product life cycle model breaks down the various stages of a products evolution, from its debut to its retirement. An explanation of the former model leads to an understanding of its perceived shortcomings, and the reason for the takeup. Xavier college, chicago and is known for his work on product and pricing strategy in relation to the product life cycle. The benefits of product life cycle costing are summarised as follows.
It can alert management that its product will inevitably face saturation and decline, and the host of problems these stages pose. Pdf impact of product life cycle stages on barriers to entry. Cradle to grave true benefits of product life cycle management. The plcs importance to marketing decision makers is to help. Product lifecycle management for the pharmaceutical industry an oracle white paper author. Introducing a new product to the market involves many steps spanning all departments in a company.
The first of the four product life cycle stages is the introduction stage. Your response should be at least 200 words in length. Thus, the concept of product life cycle can be used as a forecasting tool. This generally requires important changes in marketing strategies and methods. Each phase comes with its own characteristics, demands, and challenges. What is the role of product life cycle in marketing. Product lifecycle management for the pharmaceutical. Product life cycle can be defined as the analysis of the complete life span of a product. Product development, product introduction, product growth, product maturity and finally product decline. All products travel through various stages during their existence, and the product life cycle breaks these down into specific phases with distinct. Any business that is launching a new product needs to appreciate that this initial stage could require significant investment. Product life cycle product life cycle is a normative and descriptive model for the life of products in general the plcs importance to marketing decision makers is to help identify appropriate strategies. There may be some overlap between the standard project closeout phase and the initiation of the.
Wasson is chairman of the business and economics program at st. Ive found myself lately doing an awful lot more work in the area of product lifecycle management. The rate of product failure in marketing is alarming amount 50% of products introduce failed and the one major contributing factor is the introduction of the product at a wrong time. You essentially want to connect with the early adopters to generate early market penetration. The product lifecycle concept indicates as to what can be expected in the market for a new product at various stages. Introduction stage this is the initial stage of product in the market. You are required to use at least your textbook as source material for your response. It is an essential tool for analyzing the prospective success or potential of a. The importance of the product life cycle in marketing cannot be overemphasized. Product life cycle assists in the postponement of the desirable life phase. The products life cycle period usually consists of five major steps or phases. The product life cycle should be preferably termed as product market life cycle as it is related to a given particular market. Industrial marketing management, 5 1976 299308 elsevier scientific publishing comapny, amsterdam printed in the netherlands the importance of the product life cycle to the industrial marketer chester r. This study has been carried out to discover the impact of the product life cycle plc on the importance of outsourcing decisionmaking criteria in a manufacturing firm.
Johnson 2012 stated that product life cycle plc is a trend whereby a brand new and original product become outofdate and gradually obsolete johnson, 2012. The most important element here is to correctly define your target audience and determine how you are going to effectively reach them with your message and product. This importance helps to explain marketing programmes, policies, and procedures. Having the product in every counter is very important and is regarded as an impossible challenge. For example, if your product is the introduction phase you need to f. Even if the design and engineering departments come up fine product or creative use of technology, a product can still fail. A correct knowledge of this is important, as contemporary plm has. Descriptive model for the life of products in general. The sixphase comprehensive project life cycle model. It describes the stages a product goes through from when it was first thought of until it finally is removed from the market.
Stages in product life cycle introduction, growth, maturity and decline. Pdf product lifecycle management plm is an integrated, informationdriven strategy that speeds the innovation and launch of successful products. Identify and define the phases within the project life cycle and explain their importance to the project being successful. Product fit to customer expectation, effective marketing strategies and perfect product cannibalization are the key. The concept has implications for businesses and consumers alike, and product life cycles offer advantages and disadvantages for both parties. The product life cycle is also a useful framework for describing the typical evolution of marketing strategy over the stages of product life. This is the fourth importance and it means the various plans, policies, procedures, and strategies are followed in the different stages of the product life cycle. Project life cycles can range from predictive or plandriven approaches to adaptive or changedriven approaches. To implement a costeffective departmentwide program that provides for adequate and proper documentation of department of energy activities, proper records disposition, and promotes economy and efficiency in the program. What is product life cycle importance of the study of plc. What is the importance of product lifecycle management.
The product life cycle is an important concept in marketing. There are some major product life cycle management techniques that can be used to. Understanding product life cycle and where your product is in its lifecycle is foundational knowledge that influences many decisions a product manager makes about their product. Since an increase in profits is the major goal of a company that introduces a product into a market, the products life cycle management is very important. Thus management can prepare marketing programs accordingly to achieve success. Product life cycle describes the different stages of a product from the period of its first launch in the market to its final withdrawal from the market. The life of most products can be divided into five key stages. As a product progresses through the stages, changes are made to how the product is marketed. Advantages and disadvantages of product life cycles. The understanding of a product life cycle of a particular product is very important for marketers and company to make adequate.
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