Product Life Cycle | Product Cycle Factors | ENGINEERING STUDY MATERIALS
Product life-cycle management (PLM) is the succession of strategies by business management as a product goes through its life-cycle. The conditions in which a product is sold (advertising, saturation) changes over time and must be managed as it moves through its succession of stages.
Product life cycle
The concept of product life cycle (PLC) concerns the life of a product in the market with respect to business/commercial costs and sales measures. The product life cycle proceeds through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. PLC management makes the following three assumptions:
Products have a limited life and thus every product has a life cycle.
Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller.
Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage.
Once the product is designed and put into the market, the offering should be managed efficiently for the buyers to get value from it. Before entering into any market complete analysis is carried out by the industry for both external and internal factors including the laws and regulations, environment, economics, cultural values and market needs. From the business perspective, as a good business, the product needs to be sold before it finishes its life. In terms of profitability, expiry may jolt the overall profitability of the business therefore there are few strategies, which are practiced to ensure that the product is sold within the defined period of maturity.
Extending the product life cycle
Extending the product life cycle by improving sales, this can be done through
Advertising: Its purpose is to get additional audience and potential customers.
Exploring and expanding to new markets: By conducting market research and offering the product (or some adapted form of it) to new markets, it is possible to get more customers.
Price reduction: Many customers are attracted by price cuts and discount tags.
Adding new features: Adding value to the product to enhance its usability or to attract the attention of a wider customer base.
Packaging: New, attractive, useful or eco-friendly packaging influence the target customers.
Changing customer consumption habits: Promoting new trends of consumption can increase the number of customers.
Special promotions: Raising interest by offering Jackpot and other offers.
Heightening interest: Many of the following things attract many customers who match certain profiles: Eco-friendly production processes, good work conditions, funding the efforts of non-profit organizations (cancer cure, anti-war efforts, refugees, GLTBI, environment and animal protection, etc.) and the like.
Something important to notice is that all these techniques rely on advertising to become known. Advertising needs the others to target other potential customers and not the same over and over again.
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