Product Life Cycle Theory

1446 Words6 Pages

Product life cycle theory was introduced by Raymond Vernon professor at Harvard University. The first mention it in his book “product life cycle of international investment and trade” in 1996. Product life cycle refer to the product of its market life. In other words, it means that the process of a kind of new products entering the market from the beginning to be eliminated. The concept of the product life cycle is like the Copernican view of the universe was many years ago: a lot of people do not knew about it, but almost no one seemed to use it in any effective way. Because people are always make an inaccurate strategy to facing different phase. A product’s life cycle (PLC) can be divided into four stages that are introduction, growth, maturity …show more content…

However, research has shown that the class S-shaped curve does apply to a wide range of products; PLC may lead to inappropriate action, such as, harvesting or dropping the product. When the correct response should be increased marketing support; There is no doubt that PLC do not have the predictable function since products of four stages passes through without defining their duration. They have to choose the comparator products to measure their products life cycles. It can be seen there are many uncertain factor of PLC; the stylized marketing objectives and strategy prescriptions may be misleading. Even if a product could accurately be classified as being in a PLC stage, and sales are not simply a result of marketing activities. Although PLC theory has some limitations, it reflects different competitive position of the some product in many countries that also help to determine the direction of international trade and investment. As products moves from lifecycle phase to lifecycle phase, the elements of the marketing mix as a useful tool to promote them …show more content…

It should be noticed that is to improve marketing productivity rather than holding or building sales. There is intense price-cutting and many more products are withdrawn from the market. Company is stand on the crossing road and they need to choose which road is suitable for this kind of product. There are three options in the ultimate decline phase. In my opinion, the old product is very existence can absorb managers’ time and energy. Moreover, it will discourage or delay the development of a new, potentially more profitable replacement product. During decline step, product line should be reduced that is base on the sale situation. Occasionally, old product is beneficial to promote new product. Price may be lowered to liquidate inventory of discontinued products because profits can be improved by reducing marketing spend and cost

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