Stages in the Product Life Cycle
Stages in the Product Life Cycle Abstract
This paper defines and discusses in depth the four stages in the Product Life Cycle. Most successful products pass through these four stages which are Introduction, Growth, Maturity and Decline and the following will help to distinguish the transition between each stage while presenting their differing components. Additionally, it will display the direction in which companies take when faced with being in each varying stage. An understanding of the outcome of each stage and the development process of all of the four stages will be exposed in this paper. Products are also utilized to show examples in their current stage. In closing, the paper will express critic’s opinions and information to support their ideas that even though the Product Life Cycle theory is widely accepted, many do say that the theory has so many exceptions and so few rules that it is meaningless.
Every product has a life cycle. The stages through which individual products develop over time is known as the "Product Life Cycle." The classic product life cycle has four stages (shown below). A Product Life Cycle basically shows the path that a typical new product takes from its inception to its discontinuation (Examples of Product Life Cycle Phases, 2011). At the Introduction (or development) Stage market size and growth is slight. It is possible that substantial research and development costs have been incurred in getting the product to this stage. In addition, marketing costs may be high in order to test the market, undergo launch promotion and set up distribution channels. It is highly unlikely that companies will make profits on products at the Introduction Stage (Anderson & Zeithaml, 1984). Products at this stage have to be carefully monitored to ensure that they start to grow. Otherwise, the best option may be to withdraw or end the product. The introduction phase
This paper defines and discusses in depth the four stages in the Product Life Cycle. Most successful products pass through these four stages which are Introduction, Growth, Maturity and Decline and the following will help to distinguish the transition between each stage while presenting their differing components. Additionally, it will display the direction in which companies take when faced with being in each varying stage. An understanding of the outcome of each stage and the development process of all of the four stages will be exposed in this paper. Products are also utilized to show examples in their current stage. In closing, the paper will express critic’s opinions and information to support their ideas that even though the Product Life Cycle theory is widely accepted, many do say that the theory has so many exceptions and so few rules that it is meaningless.
Every product has a life cycle. The stages through which individual products develop over time is known as the "Product Life Cycle." The classic product life cycle has four stages (shown below). A Product Life Cycle basically shows the path that a typical new product takes from its inception to its discontinuation (Examples of Product Life Cycle Phases, 2011). At the Introduction (or development) Stage market size and growth is slight. It is possible that substantial research and development costs have been incurred in getting the product to this stage. In addition, marketing costs may be high in order to test the market, undergo launch promotion and set up distribution channels. It is highly unlikely that companies will make profits on products at the Introduction Stage (Anderson & Zeithaml, 1984). Products at this stage have to be carefully monitored to ensure that they start to grow. Otherwise, the best option may be to withdraw or end the product. The introduction phase
References: Anderson, Carl R. and Zeithaml, Carl P. (1984) Stage of the Product Life Cycle, Business Strategy, and Business Performance. The Academy of Management Journal Vol. 27, No. 1, pp. 5-24 Day, George S. (1981) The Product Life Cycle: Analysis and Applications Issues. The Journal of Marketing Vol. 45, No. 4, pp. 60-67 Encyclopedia of Business 2nd Edition: Product Life Cycle (2011) Retrieved July 31, 2011 from http://www.referenceforbusiness.com/small/Op-Qu/Product-Life-Cycle.html Houston Chronicle: Examples of Product Life Cycle Phases (2011) Retrieved July 30, 2011 from http://smallbusiness.chron.com/examples-product-life-cycle-phases-13722.html Rink, David R., Roden, Dianne M. and Fox, Harold W. (1999). "Financial Management and Planning with the Product Life Cycle Concept." Business Horizons. Vol. September