Ciclo De Vida De Un Producto

PRODUCT LIFE CYCLE

NAME : VILLANUEVA MÁRQUEZ, MELISSA MARIEL.

CYCLE : VII – A.

COURSE : TECHNICAL ENGLISH I.

TEACHER : MONTOYA CAMACHO, MARIO

PRODUCT LIFE CYCLE

The life cycle of the product (sometimes, CVP) is the evolution of the sales of an article during the time that remains in the market. Products do not generate maximum sales volume immediatelyafter entering the market, nor keep growing indefinitely.

The concept of 'life cycle of a product' is a tool of marketing or marketing. The conditions under which a product is sold changes over time; Thus, sales vary and price, distribution and promotion strategies (the 'marketing mix' variables) must be adjusted taking into account the time or phase of the life cycle in which the product is.LIFE CYCLE STAGES

Products follow a variable rate of sales over time, and go through four phases: introduction, growth, maturity and decline.

The market introduction stage
Stage of growth
Stage of maturity
Decline stage

1.-The market introduction stage

The phase of introduction (also called submission) occurs just after the time that a new product is introduced in the market. Salesare low because there is still no wide acceptance of the product on the market. The availability of the product (for the buyer) is limited. The competition is limited or non-existent.

2.- Stage of growth:

If the market accepts the product, the sales increase rapidly. Physical distribution planning is difficult at this stage of growth. However, the availability of the product extends alsoquickly throughout the country, to increase the interest of the buyer in the product.

3.- Stage of maturity
This is a so-called longest period of maturity. The sales increase is slow or has stabilized at a level, the maximum levels of sales. It is already considered a product established in the market so we can say that it is an old product.
At this time, achieves higher profitability andmore time with different marketing techniques can be extended.
4.- Decline stage
There comes a time in which the sales fall (decline or decay), in the majority of the products by changes in technology, competition, or the loss of interest by the client. Often prices drop and the benefits are reduced.
The CVP has its theoretical foundation or raison in the THEORY OF DIFFUSION OF INNOVATIONS.LIFE CYCLE MANAGEMENT

Life cycle isn't exactly the same for all products. While some have a release for a short period, the majority of consumer products is maintained at the stage of maturity for years (e.g. milk).
The marketing people must know the phase of the cycle in which products are to be able to adjust policies and strategies of the marketing mix at this stage, that strategies arechanging as the product moves from a phase to another.

* Advertising, for example, must be informative in the phase of introduction, persuasive in the stages of growth and maturity, and aimed to keep the memory at the decline stage.

* Promotion budgets tend to be higher in the early stages and are declining in maturity and decline.

* The price tends to be high in the introduction andgrowth phases, but in maturity the price must be competitive to stay in the market.

* The distribution is low in the phase of introduction; wider in the growth and maturity phases.

EXTENSION OF PRODUCT LIFE CYCLE

Companies are struggling to extend the life of the product. This is much cheaper keep a product on the market that remove it and launch a new. Marketers have designed differenttechniques to avoid or delay the phase of decline of the product. Strategies using the producers include the following:

Three patterns of prolongation of the life cycle of the product

1. Long and stable maturity.
2. Update.
3. Relaunch.

Three specific examples of the life cycle of the product

1. Change in trend or style.
2. Fashion.
3. Short-lived novelty.
Relaunch...