Another target market would include iPod and iPhone users who are comfortable with a touch screen but need something bigger. market following the decision by the South Korean giant to chose the U. They can enter in new market segments, to convince the existing customers by increasing the usage of the product, product life cycle essay, differentiated products can be added in the same product categories. Advertisement product life cycle essay are used to provide visitors with relevant ads and marketing campaigns. The cookie is used to store the user consent for the cookies in the category "Analytics". Bibliography IvyPanda.
Start Uploading Your Articles Now.
According to definition provided in the biology sciences, living things follow a rigid development lifecycle of birth, growth, maturity and death. This cycle forms the basis for the concept of product lifecycle and, by extension, a framework for describing the path a certain product will follow in a particular period of time. In product management, this concept comprises of introduction, growth, maturity and decline stage. In the introduction stage, it takes some time for a product to be accepted by the public, but by the time it reaches the growth stage it is able to attract many customers. In maturity stage, its market even out as competitors develop competitive products, product life cycle essay, and its popularity declines.
Old products are finally withdrawn from the market marking decline Marketing Teacher,Para 1. Since PLC depicts the product path from the launching period, it is a perfect tool for managing a product. Organizations can establish customer demands and alter the products features to meet these requirements. In addition, it helps the organization to determine when cost recovery will commence, as well as define the volume of transactions. This information is important to the organization for two reasons, product life cycle essay. First of all, it is possible to tell when a product can be introduced or withdrawn from a market.
However, PLC has its limitation, especially it lacks for the universality in application Tellis, nd, 6. This paper discusses the concept of PLC and how it is applied to cost recovery. It further examines how the concept has been successfully applied in development of technological products by Apple Inc. In addition to the four stages in figure 1 presented, I will also discuss the development phase in this section. This phase involves the conception of a product idea and various changes made on the basis of the original mode before it is being developed into a product life cycle essay product. The model product is passed through the test market before being delivered to the target customers.
In the development stage, company does not generate any revenue, although it incurs expenditures, product life cycle essay. This stage is followed by launching of the model product that survives test market, product life cycle essay. At this stage, the product adopted after development phase is launched. Because of promotion at this product life cycle essay, the costs are high, advertisements and need for equipment for distribution are needed, and thus, this phase involves spending with little returns NetMBA,Para 2. Some companies prefer to outsource some functions such as distribution in order to reduce the cost. The main goal of this stage is to establish a customer loyalty and increase product demand.
A product that makes to this stage enjoys public awareness and significant rise in sales. As a result, product life cycle essay, the company is satisfied because it can now start recovering its initial costs Business — The Basics, Nd, 7. Because of the increased public awareness, distributors readily accept the product since it is easy to market. Consequently, the company derives profit and recovers initial expenditure. This stage is an opportune moment to maximize product market share. Products that are new entrants into the market gain market share quite easily Komninos,6.
However, as product life cycle essay market expands, competition begins to emerge and, as a result, prices begin to decline. Previous stage competitions continue and increase in strength and ferocity. This is because more competitors have begun to develop similar products. Competition to maintain the market share becomes intense and profits starts to dwindle. Differentiation of strategies applied in order to survive in product life cycle essay market that were initiated at the previous stage are widely used. The result of this differentiation is a market that has many product models.
At the beginning of this stage and end of the previous one, sales have reached their peak levels. Customers are already familiar with the products and they have several substitutes to choose from, thus product life cycle essay depends on customer preference of a products feature. Since the brand is established, product life cycle essay, advertisement expenditure is minimal. Profit margins are also low as key players cut their prices in order to maintain market share. The best companies and products are the ones that stand competition at this stage. Thus, the main goal of this stage is to expand product market share from previous stage. At this stage, many companies abandon the market as demand for their products decreases due to the fact that customers change their tastes and preferences.
This tendency provokes the development of more competitive products. Old products will attract little customer demand, but companies that have highly differentiated products may continue to product life cycle essay profit Perreault et al, As a result, companies embark on other marketing strategies hoping to rejuvenate and extend the product line on the marketplace. In this section, I will use iPod and iPhone products to demonstrate the differences between mature and growing market. Apple Inc is an American multicultural corporations dealing with marketing and designing of computer software, consumer electronics, and Personal computers Markoff, Technological products have shorter product life cycles because companies are persistently evolving and improving their products by prolonging their significance and extending their life.
Apple Inc, for instance, develops new and better technology after every twelve to eighteen months and, as a result, product life cycle essay, the products it offers to its customers are always innovative and revolutionary. iPod sales trend in figure 2 shows the product cycle. Before its peak sales invarious generations of the product had been introduced such as Nano, Class and Touch and iPhone in the middle of the year Cahill,Para 2. This year, there was little competition for iPod but introduction of iPhone distracted its potential sales. Both and years presented in the figure indicate that the sales had been stabilized and afterwards started to decline.
InApple quarterly sales report revealed a decline in the sales of iPod. These sales had been reduced from 11 million to On the other hand, iPhone curve shows that these days it is going into its growth stage, and it has registered an increase in sales. The company has also introduced a new product in called the iPad. However, it is iPod that has significantly contributed to the higher profits that apple has experienced. In spite of this, its sales graph has reflected the S-curve that indicates that it is undergoing the product life cycle. As we have already discussed, in order to prevent decline, product life cycle essay, it is necessary to improve the product features to rejuvenate the growth of sales.
This may include development of new iPad model that will have additional feature. In introduction phase of the product, costs are higher and there is no return for the company. As a result, it does not recover the cost incurred in product development at this stage. As the product progress to the third stage of PLC, company registers increased sales and the product life cycle essay is be recognized, this results in further cutting the cost and increasing returns. In our case, iPod made more profit because it overstayed in the maturity stage, which is the phase with the least costs.
Since in growth stage the company registers increasing sales, iPhone curve is rising steadily, but in the maturity, the sales volumes even out because the market is beginning to be saturated by products of different models. This PLC analysis tool is important to a company like Apple Inc, which offers goods in the technological industry where the product must be constantly enhanced. Product life cycle analysis reveals different pictures for a production. In introduction stages, capital outlay is high and sales are low which results in low profits. This is followed by growth where sales volumes begin to rise and cost lowers due to decrease in advertisement and promotions costs.
This stage register an increase in profits, but spending is still high as a company strives to expand market share. In maturity stage, cost gets even lower as the product brand is established, competition increase, product life cycle essay, and new generation products are developed. The product is more profitable due to lower cost in this stage. At the decline stage, product life cycle essay, sales decrease due to the fact that customers change tastes and profit margin remains intact Marketing assignment No. Avlonitis, GStrategic Industrial MarketingStanoulis, New York. Business — The Basics n. Cahill, B. iPod Sales — does this graph look familiar? Christiansen J.
and Vinther E. J PRODD MANAG Haslam, C. Komninos, I. Research paper for Urban and Regional Innovation research unit, Aristotle University of Thessalonikipp. Kotler, P. Prentice Hall, New Jersey. Marketing Assignment No. Marketing Teacher. Markoff, J. The New York Times. Nagle, T. A guide to Growing More ProfitabilityPearson Education, New Jersey. Perreault, W. In Basic Marketing. A Marketing Strategy Planning Approach, Ed. McGraw-Hill, New York. Tellis, product life cycle essay, G. Division of Research Graduate School of Business Administration The University of Michigan. Need a custom Product life cycle essay sample written from scratch by professional specifically for product life cycle essay
law of life essay example
This cycle forms the basis for the concept of product lifecycle and, by extension, a framework for describing the path a certain product will follow in a particular period of time. In product management, this concept comprises of introduction, growth, maturity and decline stage. In the introduction stage, it takes some time for a product to be accepted by the public, but by the time it reaches the growth stage it is able to attract many customers. In maturity stage, its market even out as competitors develop competitive products, and its popularity declines. Old products are finally withdrawn from the market marking decline Marketing Teacher, , Para 1. Since PLC depicts the product path from the launching period, it is a perfect tool for managing a product.
Organizations can establish customer demands and alter the products features to meet these requirements. In addition, it helps the organization to determine when cost recovery will commence, as well as define the volume of transactions. This information is important to the organization for two reasons. First of all, it is possible to tell when a product can be introduced or withdrawn from a market. However, PLC has its limitation, especially it lacks for the universality in application Tellis, nd, 6.
This paper discusses the concept of PLC and how it is applied to cost recovery. It further examines how the concept has been successfully applied in development of technological products by Apple Inc. In addition to the four stages in figure 1 presented, I will also discuss the development phase in this section. This phase involves the conception of a product idea and various changes made on the basis of the original mode before it is being developed into a final product. The model product is passed through the test market before being delivered to the target customers. In the development stage, company does not generate any revenue, although it incurs expenditures. This stage is followed by launching of the model product that survives test market. At this stage, the product adopted after development phase is launched.
Because of promotion at this stage, the costs are high, advertisements and need for equipment for distribution are needed, and thus, this phase involves spending with little returns NetMBA, , Para 2. Some companies prefer to outsource some functions such as distribution in order to reduce the cost. The main goal of this stage is to establish a customer loyalty and increase product demand. A product that makes to this stage enjoys public awareness and significant rise in sales. As a result, the company is satisfied because it can now start recovering its initial costs Business — The Basics, Nd, 7. Because of the increased public awareness, distributors readily accept the product since it is easy to market.
Consequently, the company derives profit and recovers initial expenditure. This stage is an opportune moment to maximize product market share. Products that are new entrants into the market gain market share quite easily Komninos, , 6. However, as the market expands, competition begins to emerge and, as a result, prices begin to decline. Previous stage competitions continue and increase in strength and ferocity. This is because more competitors have begun to develop similar products. Competition to maintain the market share becomes intense and profits starts to dwindle. Differentiation of strategies applied in order to survive in this market that were initiated at the previous stage are widely used. The result of this differentiation is a market that has many product models.
At the beginning of this stage and end of the previous one, sales have reached their peak levels. Customers are already familiar with the products and they have several substitutes to choose from, thus demand depends on customer preference of a products feature. Since the brand is established, advertisement expenditure is minimal. Profit margins are also low as key players cut their prices in order to maintain market share. The best companies and products are the ones that stand competition at this stage. Thus, the main goal of this stage is to expand product market share from previous stage. At this stage, many companies abandon the market as demand for their products decreases due to the fact that customers change their tastes and preferences.
This tendency provokes the development of more competitive products. Old products will attract little customer demand, but companies that have highly differentiated products may continue to make profit Perreault et al, , As a result, companies embark on other marketing strategies hoping to rejuvenate and extend the product line on the marketplace. In this section, I will use iPod and iPhone products to demonstrate the differences between mature and growing market. Apple Inc is an American multicultural corporations dealing with marketing and designing of computer software, consumer electronics, and Personal computers Markoff, Technological products have shorter product life cycles because companies are persistently evolving and improving their products by prolonging their significance and extending their life.
Apple Inc, for instance, develops new and better technology after every twelve to eighteen months and, as a result, the products it offers to its customers are always innovative and revolutionary. iPod sales trend in figure 2 shows the product cycle. Before its peak sales in , various generations of the product had been introduced such as Nano, Class and Touch and iPhone in the middle of the year Cahill, , Para 2. This year, there was little competition for iPod but introduction of iPhone distracted its potential sales. Both and years presented in the figure indicate that the sales had been stabilized and afterwards started to decline.
In , Apple quarterly sales report revealed a decline in the sales of iPod. These sales had been reduced from 11 million to On the other hand, iPhone curve shows that these days it is going into its growth stage, and it has registered an increase in sales. The company has also introduced a new product in called the iPad. However, it is iPod that has significantly contributed to the higher profits that apple has experienced. In spite of this, its sales graph has reflected the S-curve that indicates that it is undergoing the product life cycle. As we have already discussed, in order to prevent decline, it is necessary to improve the product features to rejuvenate the growth of sales.
This may include development of new iPad model that will have additional feature. In introduction phase of the product, costs are higher and there is no return for the company. As a result, it does not recover the cost incurred in product development at this stage. Example of a product in decline stage is VCR. VCR is experiencing decline in capacity utilization due to the market shift to alternative products. VHS was introduced in , and by , Toshiba had introduced plans for Digital Versatile Disc DVD. By , the film industry had started using DVDs. The demand for DVD surpassed that of VHS by and by , Hollywood studies stopped using VCR by I chose the consumer electronic industry because the major force driving the industry is innovation and technology.
Launching a new product is probably the most daunting task for product manager of consumer electronics because of the frequency by which it happens compared to traditional industries where a single product can stay in the market for many years. Normally, consumer electronics exist long before they are introduced into the marketplace. The low number of sales of consumer electronics is not usually due to logistics problems. The low sales result from two factors: the low number of buyers ready to embrace innovation and the initial high cost of products due to the need to break even with the cost of research and development.
The recommended marketing strategies for Samsung are detailed below. The company uses demographic segmentation to study potential customers. It is evident that Samsung is targeting the U. market following the decision by the South Korean giant to chose the U. as the venue to launch its latest smartphone, the Galaxy S4. When a new product is introduced into the market, sales volumes are usually very low. As such, Samsung must look for strategic goal of acquiring a strong market position. The product targets the high-end market, educated people, affluent as well as early adopters of technology. Samsung should improve the product features such as software and size in order to differentiate it from Apple as well as other devices using Android.
The new smartphone comes with a variety of new features, but the company should avoid overwhelming users with large number of features, not all of which may prove useful. As such, Samsung should consider removing some of the features and reduce the price slightly. Samsung should leverage its superiority its wide following in the low-end smartphone market to start challenging Apple in the high-end smartphone market. The company has the potential to position itself in the high-end market as evidenced by sales data following the introduction of high-end Galaxy. In the growth stage of the product life cycle, sales, revenues, and profits begin to grow as the product gains popularity and market acceptance.
Concerning market segment, Apple requires more than the early adopters to increase the total market size. This involves targeting data producers, data users, technology pragmatist, as well as technology enthusiast. Apple has traditionally segmented its products vertically, with each product having a particular use. Apple should consider targeting older people who rarely use computers. Another target market would include iPod and iPhone users who are comfortable with a touch screen but need something bigger. Another target market to consider are students who are tired of carrying heavy textbooks and want to download their e-book anywhere and anytime they need. Apple can position iPad to students as e-textbook with good price and convenience, as well as an easy to carry, movie, game, music, and internet surfer device.
Apple would position the product to Kindle lovers and book lovers as an easy to and a device that is more than a book, with a wide selection of e-books and more than, applications. In order to remain competitive, Apple should consider selling mainly to major content consumers because this will drive the likelihood of them consuming other Apple content. Additionally, Apple should not compete based on price regardless of what competitors offer. Apple should maintain the iPad as a premium brand. Apple changed its pricing strategy when it launched iPad, with prices lower that that anticipated by the market. Apple should not consider reducing the prices further in an attempt to increase their customer base. The company should however form a larger distribution network to keep up with the pace of demand.
Nintendo Wii is currently in the maturity stage. The company segments its markets geographically and mainly target developed countries and affluent market segments. Due declining sales, the firm should consider expanding its market to developing countries because they have the potential for market growth. Nintendo Wii uses differentiation approach in market targeting. The main target markets include the upper middle class families, older people, soccer moms, and generation Y and childless couples. The company should also target the high-end market by innovating new products. Nintendo should position Wii as a family product that is not expensive, that has more family oriented games and easy to use. Wii should also add social attributes to its key competitive advantages.
Adding more apps to the Wii, building a co-branding relationship with social sites, and using social media capabilities to market are some of the recommended product strategies. Nintendo can also up-date product design and include stickers of app logos. Nintendo should adopt competitive-based pricing by keeping prices lower than that of PS3 and Xbox. They should also keep the prices affordable for families because their preferences will encourage them to many accessories offered by Wii. The company can also introduce bundle pricing to increase sales revenue. The company can employ both push and pull strategies in promotion. They can have displays in prominent stores as well as demo kiosks.
They also need to conduct massive sales promotion and advertising campaign to extend product stay in the market. The marketing objectives should be to inform, persuade, and remind. The company should also try personal selling to reach more customers. VCR is currently in the decline stage and there are possibilities for the product to face extinction. The company should segment it markets based on demographics with older people constituting the main target market. Older people still prefer using VCR and VHS as a way of visiting the past. The company can also target enthusiasts who believe that the old videotape format creates better sound and picture compared to digital media. We accept sample papers from students via the submission form. If this essay belongs to you and you no longer want us to display it, you can put a claim on it and we will remove it.
Just fill out the removal request form with all necessary details, such as page location and some verification of you being a true owner. Please note that we cannot guarantee that unsubstantiated claims will be satisfied. Note: this sample is kindly provided by a student like you, use it only as a guidance. ID Subscribe to WowEssays Premium and get access to over 1 MILLION high-quality downloadable samples. GET ACCESS NOW. Password recovery email has been sent to email email. HIRE WRITER PREMIUM DATABASE Sign in. HIRE WRITER PREMIUM DATABASE. Type of Paper. Essay Topics. Educational Tools. Who We Are Contact Us Our Writers Honor Code WowEssays Reviews Blog Our Services. ORDER PAPER LIKE THIS.
Premium samples database Get access to over 1 MILLION samples with WowEssays Premium! LEARN MORE. The Product Life Cycle The life cycle of a product is divided into four stage based on the revenue generated by the product or service. Industry Selection The industry that I selected for this analysis if consumer electronics industry. Products and product life cycle stage The introduction stage is when the public first hears about or sees a product. Reason for choosing consumer electronic industry I chose the consumer electronic industry because the major force driving the industry is innovation and technology. Marketing strategy for Samsung S4 Launching a new product is probably the most daunting task for product manager of consumer electronics because of the frequency by which it happens compared to traditional industries where a single product can stay in the market for many years.
Marketing strategy for iPad In the growth stage of the product life cycle, sales, revenues, and profits begin to grow as the product gains popularity and market acceptance. Marketing Mix Apple changed its pricing strategy when it launched iPad, with prices lower that that anticipated by the market. Marketing strategy for Wii Nintendo Wii is currently in the maturity stage. Product strategy Adding more apps to the Wii, building a co-branding relationship with social sites, and using social media capabilities to market are some of the recommended product strategies.
Marketing mix Nintendo should adopt competitive-based pricing by keeping prices lower than that of PS3 and Xbox. Marketing strategy for VCR VCR is currently in the decline stage and there are possibilities for the product to face extinction. Mobile Phones. Video Games. Older People. Cite this page Choose cite format: APA MLA Harvard Vancouver Chicago ASA IEEE AMA. Accessed 07 January Product Life Cycle Essay. February Accessed January 07, Retrieved January 07, com, Feb Free Essay Examples - WowEssays.
No comments:
Post a Comment