Explain Product Life Cycle? What are its characteristics?
The Product Life Cycle (PLC) is the life span of a product from development, through testing, promotion, growth and marketing, to decline and perhaps regeneration.
Characteristics of PLC
Following characteristics can be seen in the Product Life Cycle concept
1. Each product or goods has a life cycle like human beings, plants and animals.
2. The life cycle of each product begins with its introduction in the market and passes through the phases of market development, maturity, becomes leader and ultimately declines.
3. The speed of movement through various stages of life cycle, cannot be the same for all goods.
4. Profits in the business enterprise, grow quickly in the introduction stage and decline/decrease in the maturity stage due to competitive conditions. However, there is overall increase in sale during the maturity stage.
5. With the decrease in profits in the maturity stage, changes such as research and development, production pattern, marketing and financial control activities etc become essential.
Stages in Product Life Cycle (PLC)
The Product Life Cycle comprises four stages
The introduction stage of the PLC is characterized as follows
This stage of PLC has the following features
This stage of PLC is characterized as follows
As per Philip Kotler, stages of product life cycle has been divided into
1. Market Introduction
2. Market Growth
3. Market Maturity
4. Market Decline
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