Product Life Cycle

Good Essays
Product Life Cycle
Marketing Management D01
April 7, 2013

In marketing, there is a tool that is very useful to marketing strategy development. This tool is known as the product life cycle. The product life cycle goes through four stages before it is complete or starts over again. The life cycle starts with the introduction of a product, and then the product begins to grow as it is recognized by more markets and is delivered to through more channels. After the growth period, a product reaches maturity where there has competitors and sales do not match up with profit. This is the time where marketing strategists reevaluate and try to remarket the product. The last stage is the decline. This is where the seller decides to cut
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This is often the stage where a firm has to remarket the product or brand in order to keep it alive and keep profits relative to sales. Eventually, there is a decline in the sales (Peter & Donnelly). When the product enters into the stage of decline some big decisions must be made in order to keep profits relative to sales. According to the text there are five questions that the seller must decide. “The seller must decide to (1) drop the product, (2) alter the product, (3) seek new uses for the product, (4) seek new markets, or (5) continue with more of the same” (Peter & Donnelly). It is important to decide these things in order to keep the firm profitable. The costs need to be cut while still maintaining quality to ensure brand loyalty. Then the product should be evaluated to find a way to market it in yet another way and renew its life. During decline, the price of the product is incredibly low to sell of remaining merchandise or it might be high to sell to a certain kind of market called a niche. The channels are once again limited and promotion is minimal to cut spending. Decline is the end of the product life cycle. The product life cycle is primarily useful in that it forces management to have long term views about a marketing planning. When looking at the stages of the life cycle it ensures that the different aspects of marketing are
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