Product lifecycle (marketing)

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.

The goals of Product Life Cycle management (PLM) are to reduce time to market, improve product quality, reduce prototyping costs, identify potential sales opportunities and revenue contributions, and reduce environmental impacts at end-of-life. To create successful new products the company must understand its customers, markets and competitors. Product Lifecycle Management (PLM) integrates people, data, processes and business systems. It provides product information for companies and their extended supply chain enterprise. PLM solutions help organizations overcome the increased complexity and engineering challenges of developing new products for the global competitive markets.

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:

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. Product life cycle is guanine concept and this term ‘product life cycle’ is associated with every product that exists, however, due to a limited shelf life the product has to expire. 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.

1.  Extending the product life cycle.

Extending the product life cycle by improving sales, this can be done through

a.  Advertising: Get the new audience and potential customers.

b.  Price reduction: Everyone is attracted with price cuts and discount tags.

c.  Adding new features: Adding value catch buyer’s attention.

d.  Exploring new markets: Selling the product to new markets to get maximum customers.

e.  New Packaging: New attractive packaging influence the target customers.

f.   Changing customer consumption: By appreciating more frequent use showing their own benefit.

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