Tuesday, 18 December 2018

Product life cycle stages

Product life cycle stages

The product life cycle (Product Life Cycle) stages are an important concept that provides an understanding of the dynamics of a competitive product. The life cycle of a product or Product Life Cycle is a graph that describes a product's history since its introduction into the market until withdrawn from the market. The life cycle of Products (Product Life Cycle) this is an important concept in marketing is due to provide a deep understanding of the dynamics of a competing product.

The stage of introduction (introduction).

In the introductory phase, goods began to be marketed into a huge amount of volume. Even though its sales have not been appropriate. The goods on sale are essentially new stuff (which is exactly new). Due to the still start, and usually cost incurred is also especially high cost advertising (Promotional). The promotion is conduct must be as well as lead to brand the seller. In addition to the distribution of goods that it also is still limit. The profit earned is also still low.

Stage of growth (growth).

In this stage, sales as well as profits will rise very quickly. due to a request already greatly improved as well as the community at about already know the product in question, then the promotional efforts made by a company is not as aggressive as the previous stage. In this stage the lama’s competitors have already begun to enter the market so there is competition becomes tighter. Another way that can be done to be able to expand as well as increase its distribution is by way of lowering the price of selling.

Stages of maturity (maturity)

At maturity, we can all see that sales are still increasing and also at a later stage. In this stage, the manufacturer's or retailer's profit profits began to fall. Competition on the price becomes very sharp so that an enterprise needs to introduce productivity with the new model of creativity. In this stage of maturity, of effort in advertising (promotional) usually start upgraded again to be able to face competition.

Stage of decline (decline)

In almost all kinds of goods are produce of a company always experience antiquity. Or wear and tear as well as also must be replace with new goods. In this setback phase, the new stuff should already be market to replace old stuff that already. Although in a number of competitors have already reduce. But cost control becomes very important cause. Because the request was already decline considerably. If the old stuff that's not immediately left without being replace with new goods. Then the company can only operate within a particular market are very limit.

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