Stages of Product Life Cycle PDF

# Stages of Product Life Cycle ## 1. Product Development The new product planning process involves a series of steps: 1. **Idea Generation** - searching and looking for new product or business opportunities. The employees, channel members, competitors, and customers can be good source. 2. **Idea...

# Stages of Product Life Cycle ## 1. Product Development The new product planning process involves a series of steps: 1. **Idea Generation** - searching and looking for new product or business opportunities. The employees, channel members, competitors, and customers can be good source. 2. **Idea Screening** - ideas which are not suitable, not attractive, or poor are junked. Ideas together with characteristics are rated based on a rating from 1-10 3. **Concept Testing** - ideas which have proceeded the screening stage will now require feedback from the consumer. 4. **Business Analysis** - is an evaluation of market factors, revenues, cost and trends. 5. **Product Development** - ideas are transformed into tangible form. 6. **Test Marketing** - requires a selling of a fully developed product in a selected city and observing the actual or on the spot performance under the chosen marketing plan. 7. **Commercialization** - this involves the real/actual marketing of the product in the target market. The different activities to introduce the product to the market must be presented - The company should think of a new product. A new product is a modification, creation, and innovation of an existing product which makes the product more significant to the customer. ## II. Introduction - A new product is introduced into the marketplace and the objective is to generate consumer interest. ## III. Growth - The product starts generating profits and the company is able to recover the initial investments. - Increasing sales and market share are the key objectives of this stage. - Competition begins to intensify during this phase. - Promotion and distribution play a crucial role in strengthening customer base. ## IV. Maturity - Sales growth starts to slow down as the product reaches its peak. - The product has become established in the market, and most of the potential customers have already purchased it. - Profitability remains high. - Companies must defend their market share against competitors who are also trying to capture a share of the market. ## V. Decline - The product's sales falls as alternatives and new competitors enter the market. - Companies may reduce or lessen the items produced and outlets used, promotion utilized, or they can revive and renew the product by repositioning, repackaging or they can stop the product. ## The Product Life Cycle The Product Life Cycle concept describes and relates the product's sales, profits, customers, competitors, and marketing emphasis from its beginning until it is removed or pull out from the market. ## Tips in Choosing the Business Name 1. **Easy to recall or remember** - the business name must be understandable, so it is easily stored or recalled in the memory. 2. **Pleasant Meaning Creates Pleasant Feelings** - it produces positive or favorable feeling upon saying or introducing to the public. 3. **Easy to Pronounce** - the business name must be mentioned as freely as it can be. 4. **Easy to Spell** - the business name must be simple or easy. Words that are used in everyday communication will be an advantage. 5. **Related to the Product** - the business name must describe or relate the product. It represents the features of the product ## The Entrepreneur should look deeper into following area based on: ### **Productivity** -> Product specifications must be maintained -> Work schedules must be followed to save time and energy -> Inventory reports must be available and warehousing activities. ### **Customer Requirement** -> Needs demand analysis -> Demographic profile of the customer -> Marketing research will determine the true picture of the market demand and the product competitors. ### **Profitability** Sources of funds: :> Savings, :> Assets, :> Banks, :> Partnership & :> Stock options ### **Viability** -> They must give emphasis on the technical and manpower complements. -> They must introduce new technology to make work easier for the working team.