Expose anglais product life cycle

Expose anglais product life cycle

PRESENTATION INTRODUCTION I-CONTEXT II-THEORY OF PRODUCT LIFE CYCLE III-DIFFERENT STEPS OF A PRODUCT • THEIR IMPACT UPON THE MIX MARKETING IV-LIMITS OF THE THEORY PRODUCT LIFE CYCLE CONCLUSION INTRODUCTION The activity of presenting, advertising and selling a firm’s products in the possible way is called marketing. To measure out, to choose and to combine the means with whose it wishes to act upon the market is very important for a firm. Nowadays, firms use many policies to checking and analysing their activities.

Find out the stage in which their activities are located or the path they are going on, allow them to improve their marketing thought. Product life cycle (PLC) concept is one of these strategies used by several firms for analysing and checking the sale of their products growth. I-CONTEXT The product life cycle (PLC) concept suggests that a product passes through four stages of evolution. As a biological circle or a human being’s life, a product has got several phases: conception, introduction, growth, maturity and decline.

PLC can be defined as the analysis of the great steps of his life: from his concept to the final decision to withdraw it from the market. A product evolves and passes through theses stages,

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its profit is affected and different strategies have to be employed to ensure that the product is a success within its market. The product life cycle is a rudiment of the evolution of a product through the space. |STAGES |HUMAN BEING |PRODUCT | 0 |Conception |elaboration | |I |Birth |introduction | |II |Teen |growth | III |Adult |maturity | |IV |old age |decline | II-THEORY OF PRODUCT LIFE CYCLE The product life cycle goes through many phases, involves many professional disciplines, and requires many skills, tools and processes.

Product life cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures; whereas product life cycle management (PLM) has more to do with managing descriptions and properties of a product through its development and useful life, mainly from a business/engineering point of view. The duration of each stage could be more or less long according to the product or service. It is materialized with a curve called life curve; it is a dynamic representation of his life.

Generally, the PLC job is the commercial history of a product. It is identified with the “S” as a curve shape. To say that a product has a life cycle is to assert four things: 1. That products have a limited life, 2. Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller, 3. Profits rise and fall at different stages of product life cycle, 4. Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life cycle stage.

III-DIFFERENT STEPS OF A PRODUCT Each stage is characterized by its growth rate, its sales, its profitability, its debts, the degree of focus of the product, the speed of the market development and the policies adopted by each element of Mix Marketing. Introduction Stage or Market introduction stage As a new product much time will be spent by the organisation to create awareness of it presence amongst its target market. Profits are negative or low because of this reason. The firm seeks to build product awareness and develop a market for the product. The impact on the marketing mix is as follows: • Product branding and quality level is established and intellectual property protection such as patents and trademarks are obtained. • Pricing may be low penetration pricing to build market share rapidly, or high skim pricing to recover development costs. • Distribution is selective until consumers show acceptance of the product. • Promotion is aimed at innovators and early adopters. Marketing communications seeks to build product awareness and to educate potential consumers about the product. Growth Stage

If consumer clearly feels that this product will benefit them in some ways and they accept it, the organisation will see a period of rapid sales growth. In the growth stage, the firm seeks to build brand preference and increase market share. • The impact on the marketing mix is as follows Product quality is maintained and additional features and support services may be added. Pricing is maintained as the firm enjoys increasing demand with little competition. Distribution channels are added as demand increases and customers accept the product.

Promotion is aimed at a broader audience. Maturity Stage Rapid sales growth cannot last forever. Sales slow down as the product sales reach peak as it has been accepted by most buyers. At maturity, the strong growth in sales diminishes. Competition may appear with similar products. The primary objective at this point is to defend market share while maximizing profit. • The impact on the marketing mix is as follows • Product features may be enhanced to differentiate the product from that of competitors. • Pricing may be lower because of the new competition. Distribution becomes more intensive and incentives may be offered to encourage preference over competing products. • Promotion emphasizes Product differentiation. Decline Stage Sales and profits start to decline, the organisation may try to change their pricing strategy to stimulate growth, and however the product will either have to be re-modified, or replaced within the market. As sales decline, the firm has several options: ? Maintain the product, possibly rejuvenating it by adding new features and finding new uses. Harvest the product – reduce costs and continue to offer it, possibly to a loyal niche segment. ? Discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to continue the product. • The marketing mix decisions in the decline phase will depend on the selected strategy. For example, the product may be changed if it is being rejuvenated, or left unchanged if it is being harvested or liquidated. The price may be maintained if the product is harvested, or reduced drastically if liquidated. RECAPULATION BOARD OF THE PLC AND ITS CHARACTERISES |elaboration |introduction |growth |maturity |decline | |Stage |Product conception |Product distribution on |-increase of sales |- sales evolution |-strong reduction of sales | |description |(test, research… ) |market |-customers increase |-strong pressure of the|-product outdated | | | | |-competitors |competitors | | | | |appearance | | | |Growth rate |null |weak |strong |null or weak |negative | |Sales |experiment |weak |Strong progression |Null or weak |regressing | | | | | |progression | | Profitability |negative |negative |Middle then strong |Strong then middle |Weak then null | |Debts |strong |strong |Weak |null |null | |Product |-conception |-Some modification |-production by big wage |-important |-reduction of range | | |-test |-range limited |- Widen of the distribution |segmentation | | |-experiment | | | | | |Price |Price calculation |-Price higher |-little change |Readjustment according |Promotion by price | | | |-price lower |-price widen |to competitors | | |Place |Market test |Positioning of the product|Widen of the distribution |-Relevance of the |-some distributors give up | | | | |product | | | | | | |-special condition for | | | | | | |the distributors | | |Promotion |Important expense just |Expenses important on the |- to act upon the brand |-to increase the use |-Reduction of the expenses | |before the introduction|brand |faithfulness |rate(media) |-promotion for a | | | | | |promotional acts |reintroduction of the product | | |(media) | | | | | [pic] Product Life Cycle GRAPH IV-LIMITS OF THE THEORY PRODUCT LIFE CYCLE

On the whole, we must recognize that the concept of life cycle has been used by marketer in the preparation of their acts. It usefulness varies according to the types of decisions concerned. As an expectation tool, its interest is limited. Sometimes, in so far as the sales historic underline different kinds of curves and different duration for the cycle stages. As planning and checking tool, life cycle is very use for comparing obtained results and suggesting the main policies marketing choices provided by the firm. Life cycle rudiment shows towards the drawbacks to stress product to the detriment of market.

The borders which mark off the different stages are not precise and almost arbitrary; generally they are fixed according to growth evolution or turnover decline. CONCLUSION The PLC is a dependent variable which is determined by market actions; it is not an independent variable to which companies should adapt their marketing programs. Marketing management itself can alter the shape and duration of a brand’s life cycle. Thus, the life cycle may be useful as a description, but not as a predictor; and usually should be firmly under the control of the marketer.

The important point is that in many markets the product or brand life cycle is significantly longer than the planning cycle of the organizations involved. Thus, it offers little practical value for most marketers. Even if the PLC exists for them, their plans will be based just upon that piece of the curve where they currently reside (most probably in the ‘mature’ stage); and their view of that part of it will almost certainly be ‘linear’ (and limited), and will not encompass the whole range from growth to decline.

SOME DEFINITION Product Life Cycle Management is the succession of strategies used by management as a product goes through its product life cycle. Condition in which a product is sold changes over time and must be managed as it moves through its succession of stages. Sources quickmba. com www. learnmarketing. net Marketing management, KOTLER ET DUBOIS, 6eme edition p. 325 [pic][pic]