Product Life Cycle

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Product Life Cycle (PLC) is a term used to describe individual stages in the life of a product. Product life cycle is an important aspect of conducting business which affects strategic planning. Product life cycle can be divided into several stages characterized by the revenue generated by the product. Product life cycle is very similar to a life. A living being is first born (introduction). Then it grows through its youth (growth) to become an adult (maturity). When it gets old, it declines both mentally and physically (decline), after which it eventually dies. An analogy to this process can be observed in production as well. First, a product is being developed. After we know what it is that we are selling and what the customer wants, we introduce it to the market. As our product becomes known by consumers, it grows until it establishes a solid position in the market. At this point, our product is mature. After a period of time, the product is overtaken by development and the introduction of superior competitors. Then it goes into decline and is eventually withdrawn. All these phases together are called product life cycle. Business strategy and performance is affected to a great degree by life cycle stages of a product or service. Business priorities, budgeting, funding, production, distribution, and marketing -- all these production aspects change depending on how long a product or a service has been in the market. The product life cycle method identifies the four (five) distinct stages affecting sales of a product, from the product's inception until its retirement. INTRODUCTION In the Introduction stage of the product life cycle, a product or a service is introduced to the market. This stage involves focused and intense marketing effort designed to establish a clear identity and promote maximum awareness. Consumers are testing the product in this phase.

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