Product Life Cycle Essay

What is Marketing ? Marketing is building profitable customer relationships. The aim of marketing is to create value for customers and to capture value in return. The management process through which goods and services move from concept to the customer. Marketing is the way companies interact with consumers to create relationships that are beneficial to both parties. Businesses use marketing to identify their audience before advertising to them. Today, this is most visible through social media interactions and contests. Definition of Marketing : Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others. It includes the coordination of four elements called the 4 P’s of marketing i.e. product , price, place and promotional activities. Product Life Cycle : Product Life cycle is the process through which products pass through several stages of development in its life from introduction to decline. It describes the stages a product goes through from when it was first thought of until it finally is removed from the market. Not all products reach this final stage. Some continue to grow and others rise and fall. Stages of product life cycle include : 1) Development 2) Introduction 3) Growth 4) Maturity 5) Saturation 6) Decline P.T.O. *Stages of Product Life Cycle* Stage 1 – Development This stage is when the product is in development. Right from when the idea is born until the product is released onto the market. This stage is crucial in getting everything right before the launch and can last years, depending on the product. Eg: Bisleri Packaged Drinking Water Stage 2 – Introduction The day has arrived and the product is launched onto the market. The main characteristic of this stage is that figures are small and only grow slightly as the product becomes known and the public decides whether it is actually needed or indeed whether it is any good. Stage 3 – Growth Here is where much of the money is made back on the product. The prior two stages have been expensive with development and marketing but now people begin to buy and the sales forecasts outweigh the costs. Some marketing is required as rivals may try to get in on the action in this stage when they see how big the product has become. Stage 4 – Maturity Stage four is when a product has become popular and is widely accepted by the public despite competition and age. Less marketing is required, if any at all and the company focuses on keeping its users whilst looking for new opportunities to be their next big product. Stage 5 – Saturation A stage in a product’s life cycle in which everyone who might want the product already has it. If a company is in this stage, then it could indicate that the company is not innovative, or that competitors have been able to provide superior product offerings. Stage 6 – Decline As time goes on, a product will eventually become outdated and unneeded by the public. This is particularly true in the IT sector but also with most other products. Newer versions come out or cheaper alternatives are just as good.