Evaluate the Strengths and Weaknesses of the Concept of the Product Lifecycle. Choose Several Case Research Familiar to you personally. How Does the...

Title: Assess the strengths and weaknesses of the concept of the product lifecycle. Choose some circumstance studies familiar to you. How does the theory in the product lifecycle drive online marketing strategy in these cases?

With the development of technology and the evolution of contemporary society, the competition of market has become more and more intense. This trend drives the new ideas of products to come up regularly and makes time gap become extremely brief between the launch and the decline of new items. At the same time, the pace of removal of a new product is going to boost.

In 1966, Prof. Raymond Vernon released the item Lifecycle (PLC) theory in ‘International Investment and International Trade in the Product Cycle'. The product lifecycle refers to the four stages in the life of a merchandise which are: introduction, growth, maturity, and drop. (Raymond Vernon, 1966) This kind of theory has some advantages to aid company in developing its product marketing strategy, but the product manager or perhaps company agent must identify their concentrate on customer group and understand the demand standard of their products.

Although the PLC theory could have its some weakness or unfit in certain items, it indicates the different level of awareness during the several stages and help the organization make the technique clearly and precisely too. The purpose of this kind of paper should be to explain and evaluate the actual strengths and weaknesses of PLC are, why use PLC theory, and how the theory affects marketing strategy.

Product lifecycle consists of four stages. In the first stage, the Advantages Stage, new product is just introduced and gets into the market with almost no awareness so that the quantity of sales is very low. Advertisement and sales promotion expense almost be the cause of the most section of the total price and there is simply no profit from this stage. (Porter, 1980; 1985; Kotler ou al., mil novecentos e noventa e seis; Blackwell et al., 2001; Grant, 2002; Kotler and Armstrong, 2004).

The second level of lifecycle is called the Growth Stage. A growing part of customer already allows the product after the successful introduction stage. Visibility, demand and sales increase in numerous product sales channels. At the same time, the production expense starts lowering so that products gain the most profit with this stage.

Following the development stage is a Maturity Level. In this level, the market reveal is steady. Due to the mass production, the production cost is with the lowest cost in these four periods. However , with the increasing range of competitors, the need of the product becomes condensed, which means that several competitors need to spend additional money on advertising improve their products.

A final stage is definitely the Decline Stage. Demand and sales show up to the lowest level by this time inside the product lifecycle. Products become unacceptable and they are replaced simply by new products with higher efficiency and lower price. Producer starts to reduce the development and give up the market.

One of the significant current discussions in paper is the strength of product lifecycle. Product lifecycle theory offers the guidance and marketing methods which are appropriate at a particular stage and helps the company managers make their very own sale strategy easily and effectively. For example , the initial generation of iPhone was released on January 2007. Since then, Apple iPhone Organization has focused considerably on this product and focused on the prediction in the life pattern of their items. In the initially stage, Apple sets up a higher price for the merchandise in order to stimulate basic requirements, and it makes promoting and helps bring about the brand visibility as well. First, with its bold and ground breaking style and satisfaction, Apple captured the planet's attention successfully. The product value decreases a little bit in the progress stage, and after that Apple begins to strengthen product sales channel to stimulate selective demand, stress their own company, and boost products. Next, in the third stage, Apple makes...

Recommendations: Raymond Vernon. (1966). ‘International Investment and International Trade in the Product Cycle', The Quarterly Diary of Economics, Vol. eighty, No . two (May, 1966), pp. 190-207. The UBER Press. Sold at http://www.jstor.org/stable/1880689 (accessed on16 03 2009).

iPhone Support life Cycle

http://www.collegeessaysamples.org/product-life-cycle-iphone/

Raymond Vernon. (1979) ‘The Product Cycle Theory ‘, The Wright State University Press. Offered at http://www.wright.edu/~tdung/product_cycle.htm (accessed on21 August 2013).

Louis T. Wells, JR. (1968) ‘A Support life Cycle to get International Control ‘, Record of Marketing, Volume. 32 (July, 1968), pp. 1-6. American Marketing Affiliation. Available at http://wenku.baidu.com/view/0a0d6c1f6bd97f192279e90c.html

Porter, Meters. E. (1980). Competitive Approach: Techniques for Examining Industries and Competitors. New york city: Free Press.

Porter, M. E. (1985). Competitive Benefit: Creating and Sustaining Remarkable Performance. Nyc: Free Press.



News

 External and Internal Conditions Business Essay

External and Internal Conditions Business Essay

External and Internal Conditions By Dorothy Bruce Professor Ira Poladeen Business Capstone Apr 28, 2015 A great organization's environment includes factors…...

 importance of time Essay

importance of time Essay

Time is precious. It is invaluable. It is one of the highly effective factors. Our life is scored in terms of period. We grow in time, stay in…...

 Guns Are a Danger to Society Essay

Guns Are a Danger to Society Essay

Firearms are a Threat to Contemporary society Just imagine being placed in a movie theatre around night time and instantly some upset man will come in and starts…...

 Sample Essay

Sample Essay

Topic: Relationship between Teachers' qualification and Students' educational performance in Senior Large Schools in Lagos Point out, Nigeria. Exploration Question: Carry out teachers' certification affect the educational performance of…...

 Shakespeare Creates About Problems that Are Still Relevant Today Article

Shakespeare Creates About Problems that Are Still Relevant Today Article

Shakespeare creates about problems that are still relevant today William shakespeare writes regarding issues that continue to be relevant today because his themes happen to be universal, his…...

 The Wm. Wrigley Junior. Company Example Essay

The Wm. Wrigley Junior. Company Example Essay

CAPITAL COMPOSITION, VALUATION, AND COST OF CAPITAL Executive Synopsis Aurora Borealis LLC can be an activist Hedge pay for. They are aiming to buy a sizable stake…...