Product Life cycle, 4 stages of product life Cycle — Transcript

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1. 0:00hi welcome to education leaves
2. 0:03in this video i am going to discuss what
3. 0:06is product life cycle
4. 0:07stages of the product life cycle and
5. 0:10example of the product life cycle
6. 0:13let's start the video if you look at any
7. 0:16new or old appliance in your home
8. 0:19you will notice that the product is
9. 0:21still in the market or it has
10. 0:22discontinued by the manufacturer
11. 0:25that means you are experiencing
12. 0:26different stages of the product life
13. 0:29cycle
14. 0:30this process happens continuously to
15. 0:32every product into the market
16. 0:34from the launching the product all the
17. 0:36way through decline stages and eventual
18. 0:38discontinuation
19. 0:40so what is product life cycle the term
20. 0:44product life cycle refers to the time
21. 0:46period a product is introduced to
22. 0:48consumers
23. 0:49until it's removed from the market some
24. 0:52of the products may stay in a long
25. 0:53maturity state
26. 0:55all products eventually phase out of the
27. 0:57market due to several factors including
28. 0:59saturation
29. 1:00increased competition decreased demand
30. 1:03and dropping sales
31. 1:04this concept is used by the management
32. 1:06and marketing department of companies
33. 1:08as a factor in deciding when it is an
34. 1:10appropriate time to increase advertising
35. 1:13reduce prices expand to new markets
36. 1:16or redesign the packaging
37. 1:19stages of the product life cycle
38. 1:23now look at the product life cycle
39. 1:25diagram
40. 1:26y-axis represents sales volume and the
41. 1:29x-axis represents
42. 1:31time there are four stages that are
43. 1:33generally accepted in a product life
44. 1:36cycle one
45. 1:37introduction stage two growth stage
46. 1:403 maturity stage 4.
47. 1:44decline stage let's understand each
48. 1:47stage
49. 1:47separately introduction stage
50. 1:52after successfully developing a product
51. 1:54first stage is the introduction
52. 1:56where the product is being launched into
53. 1:58the market
54. 1:59this stage basically includes a
55. 2:01substantial investment in advertising
56. 2:03and marketing
57. 2:05focused on making consumers aware of the
58. 2:07products features and its benefits
59. 2:09in the introduction stage the company is
60. 2:12first able to get a sense of how
61. 2:14consumers respond to the product
62. 2:16if they like it or not and how
63. 2:18successful it may be
64. 2:21growth stage after successfully
65. 2:24introducing the new product
66. 2:26a gradual rise in its sales curve can be
67. 2:28seen
68. 2:29at some point in this rise a significant
69. 2:32increase in consumer demand occurs
70. 2:35and sales started to take off if
71. 2:37competition for the product becomes high
72. 2:40the company have to heavily invest in
73. 2:42advertising and promotion to beat out
74. 2:44competitors
75. 2:45as a result of the product sales growth
76. 2:47the market itself tends to expand
77. 2:51more new customers are becoming aware of
78. 2:53the product and trying it
79. 2:55if the customers are get satisfied with
80. 2:57the product
81. 2:58they will buy it again and again
82. 3:01maturity stage
83. 3:03this is the most profitable stage of the
84. 3:05product life cycle
85. 3:07as the production volume increasing the
86. 3:10costs of producing and marketing decline
87. 3:13also its sales tend to slow that
88. 3:15indicating a largely saturated
89. 3:18market companies will reduce the
90. 3:20marketing
91. 3:21and starts to develop new or alternative
92. 3:23products to reach different market
93. 3:25segments
94. 3:27longer or shorter maturity stage
95. 3:29depending on the product
96. 3:31for some brands the maturity stage is
97. 3:33very drawn out
98. 3:35an example of that coca-cola
99. 3:38decline stage although companies will
100. 3:42hardly try to keep the product alive in
101. 3:44the maturity stage
102. 3:46as long as possible the decline stage
103. 3:48for every product is unavoidable because
104. 3:50of the deletion of the product from the
105. 3:52market
106. 3:53in this stage of the product life cycle
107. 3:56product sales drop rapidly and consumer
108. 3:59behavior changes
109. 4:00as there is decreasing demand for the
110. 4:02product
111. 4:03eventually the product will be
112. 4:05discontinued from the market
113. 4:08let's see an example of the product life
114. 4:10cycle
115. 4:12when the typewriter first introduced in
116. 4:14the late 19th century
117. 4:16typewriters grew in popularity there's a
118. 4:19technology that improved ease and
119. 4:21writing accuracy
120. 4:22however new electronic technology like
121. 4:25computers
122. 4:26laptops and even mobile has quickly
123. 4:28replaced typewriters
124. 4:30causing their revenues and demand to
125. 4:32drop off
126. 4:34if you want to read in details or
127. 4:36download the pdf
128. 4:37go through the link in the description
129. 4:40like the video
130. 4:41and don't forget to subscribe to my
131. 4:43channel