Product Life Cycle
The Product Life Cycle of Black Barrel Cheese
Definition of Product Life Cycle
The period of time over which one item is developed, brought to market and eventually from the market. First, the idea for the product undergoes for research and development. If the idea is determined to be feasible and potentially possible the product will be produced and marketed and rolled out. Assuming the product becomes successful; its production will grow until the product becomes widely available. Eventually, the demand for the product will decline and will become obsolete.
A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.
The product revenue and profits can be plotted as a function of the life-cycle stages as shown in the graph below: Product Life Cycle Diagram
Introduction Stage
In the introduction stage, 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
In the growth stage, the firm seeks to build brand preference and increase market share. * 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
Definition of Product Life Cycle
The period of time over which one item is developed, brought to market and eventually from the market. First, the idea for the product undergoes for research and development. If the idea is determined to be feasible and potentially possible the product will be produced and marketed and rolled out. Assuming the product becomes successful; its production will grow until the product becomes widely available. Eventually, the demand for the product will decline and will become obsolete.
A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.
The product revenue and profits can be plotted as a function of the life-cycle stages as shown in the graph below: Product Life Cycle Diagram
Introduction Stage
In the introduction stage, 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
In the growth stage, the firm seeks to build brand preference and increase market share. * 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