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What is Product Life Cycle?

Important banking qna for banking aspirants, which is helpful in banking exam.

Mar 4, 2015 12:52 IST
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What is Product Life Cycle?

  • 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.
  • A new product is first developed and then introduced to the market. Once the introduction is successful, a growth period follows with wider awareness of the product and increasing sales.
  • The product enters maturity when sales stop growing and demand stabilises. Eventually, sales may decline until the product is finally withdrawn from the market or redeveloped.
  • In the words of Arch Paton, "A product's life cycle is very much similar to human life cycle. A product is produced, increases speedily on demand and reaches maturity and then results in to decline."
  • According to Stanton, "A product has to pass through various stages and different competitive environments from its introduction to decline.
  • Its success (of life) is determined by the fact that how best it fits in such an environment and conditions.
  • "According to Philip Kotler, "The product life cycle is an attempt to recognise distinct stages in the sales history of the product".

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