What Is the Role of Product Life Cycle in Business?
Product life cycle (product life cycle), also known as "commodity life cycle". Refers to the entire movement process from the product ready to enter the market to being eliminated from the market, which is determined by the production cycle of demand and technology. It is the economic life of a product or commodity in a market movement, that is, the cycle of a commodity's transition from prosperity to decline caused by changes in consumer demand and other factors affecting the market during the market circulation process. It is mainly determined by changes in consumer consumption patterns, consumption levels, consumption structure and consumption psychology. It is generally divided into four stages: the introduction (entry) period, the growth period, the mature period (saturation period), and the decline (decline) period. [1]
Product Lifecycle
- 1. The product life cycle defined by marketing is: introduction, growth, maturity,
- (I) Product life cycle stage
- The typical product life cycle can generally be divided into four stages, namely the input period, growth period, saturation period and decline period
- 1. Investment period. When a new product is put on the market, it enters the investment period. At this time, customers do not understand the product, only a few customers who are pursuing novelty may buy, and the sales volume is very low. In order to expand sales, a large amount of promotional costs are needed to advertise the product. At this stage, due to technical reasons, the product cannot
- The four stages of a typical product life cycle present different market characteristics.
- The special product life cycle includes four special types: the style product life cycle, the fashion product life cycle, the boom product life cycle, and the scallop-shaped product life cycle. Their product life cycle curves are not the usual S type.
style Product life cycle style
- It is a basic but prominent expression in human life. Once a style is created, it may last for several generations, and according to people's interest in it, it presents a circular pattern, sometimes popular, and sometimes not popular.
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Style Product Life Cycle
Product life cycle fashion
- Refers to the style that everyone accepts and welcomes in a certain field. The characteristic of the life cycle of a fashionable product is that it was rarely accepted when it was first listed (called the unique phase), but the number of adopters gradually increased with time (imitation phase), and finally it was widely accepted (a large number of popular phases). Decline (decline phase), consumers are beginning to turn their attention to another fashion that is more appealing to them.
- Fashion product life cycle
fad Product life cycle boom (fad)
- It is a fashion that is menacing and quickly attracts the attention of the public, commonly known as fashion. The life cycle of boom products often grows rapidly and decays rapidly, mainly because it only meets the curiosity or needs of human beings. It attracts only a few people who are looking for excitement and unconventionality, and usually cannot meet the stronger needs.
- Crazy product life cycle
scallop) Product life cycle scallop
- The scallop-type product life cycle mainly refers to the continuous extension and extension of the product life cycle, which is often due to product innovation or new uses found from time to time.