Monday, January 14, 2019
Compare and Contrast the Characteristics of a Growing and a Mature Product Market Essay
Use extended examples to comp are and contrast the characteristics of a suppuration and a mature return mart. Regardless of the value of e actually emergence, they completely progress done a point of intersection life regular recurrence. The pattern starts with the macrocosm of the product and gradually moves to growth, maturity and finally be replaced by natural improved products or naturally decline. Each of these stages of product life pass requires a unalike grocery storeing mix and research. The life of a product is the period over which it appeals to customers.The sales performance of any product rises from naught when the product is introduced to the market reaches a peak and then declines to nothing again. Examples of products that confuse had short lifespan in recent years are family line computers. New models with new specifications are launched on the market rapidly to be replaced by newer models which is a similar story for mobile phones (ref the times ampere-second calling studies Marketing Theory online) Increase in the earn of the federation is ein truth businesses core goal. To reach the goal product life cycle management is vital.Some companies use strategic planning and other(a)s follow the staple fiber rules of the different life cycle stage that are analysed later. The performance of the product has the main effect on the performance of every business from income to profit to cost recovery. Product life cycle helps business management go down which of its current products should receive more or less investment to witness the business achieves its objectives. Lets take an example of apple iPhone mental home orchard apple tree first introduces iPhone in Macworld San FranciscoJanuary 9, 2007 (ref Apple Press info online). evolution The apple iPhone sales for the year 2008 with 245% sales increase (ref CNNMoney iPhone sales grew 245% in 2008 online). Maturity They introduced iPhone in other networks like 3G, 3Gs and V odafone. Decline iPhone 3G sold in cheaper price. Now they have moved from iPhone 3G to IPhone 4 and the latest iPhone 4 Siri. Apple first introduced iPhone in Macworld San FranciscoJanuary 9, 2007. After its qualifying iPhone made very secure marketing sales in the stores. Many multitude lined up in front of the apple store to buy the newly released iPhone. shortly after its release apple had the sales of 6. 89 million (ref CNNMoney iPhone sales grew 245% in 2008 online). Apple used various promotional strategies to increase their market share. Their TV ads introduced people what their key features where and how they could be used. The first UK network to sell iPhone was O2 (ref BBC news O2 get iPhone contract in UK online). After the partnership amid the two business companies, O2 provided different monthly plan and tariffs for iPhone. More people where interested in buying iPhone in monthly plan and tariffs with O2.Apple in like manner provided their customers with 1 Year f ree warranty for iPhone by which they managed to net profit trust and satisfaction from the customers. Because the iPhone was only supported by a oneness network 02, the companionship started to face decline in sale prices. They were at the maturity stage so the iPhone brought different plan and ideas to boost up their sales again. In order to do so apple rock-bottom price of iPhone. They made partnership with other networks like Vodafone (ref BBC news Vodafone enters UK iPhone market online).Positive progress where then follow throughn after they planned to join other networks and reduce the product price. In the time between 2009 and 2010 apple were equal to sell 20, 731,000 iPhone. But they are rapidly doing at that place product phylogenesis and now they have recently released iPhone 4s on 14th October 2011 (ref techradar. com apple iPhone 4S UK release date announced online). Through the above different phases Apple has been adequate to(p) to establish itself a third p osition in the smartphone market share. This shows how different product phases can affect a company.As you can see iPhone had the popularity on the introduction and increased sales on the growing phase but it started to have fewer sales and went into maturity. At the maturity phase apple had to invest more on their product emergence and increase their sales and popularity. They had less income but more expenses as they had to implement development plans and strategies and increase advertisement. During the phases apple may not have been able to sluice up profit but they gradually came up with new ideas and increased income.Summing up the product life cycle has a significant impact on the business strategy and performance including marketing and product development. It also helps the business determine when its reasonable to eliminate certain product, what are the consequences and also work on substituting it with new innovative product. But with the benefits there are also some limitations of product life cycle. As Products, companies and markets are different, so not all products or operate go through every stage of the PLC.There have been many cases where products have done for(p) straight from introduction to decline, usually because of bad marketing, misconceived features, lack of value to the consumer or simply a lack of need for such a product. However, even if products would go through every stage of the PLC, not all products/services spend the same length of time at each stage. This adds other level of complexity in determining which PLC stage the product is in and consequently, which strategy to apply (ref marketing91. com limitation PLC online).Hence, there are both benefits and limitations of product life cycle and it has different effect on a company depending on which stage the product is and what strategy is to be implemented. The Product demeanor Cycle model is inefficient when dealing with Brands or Services. Brands are not products but do have a life cycle of their own, and products be to a certain brand will experience a very different life cycle than the brand itself. For example, Dell and Mercedes-Benz are very strong brands whose life cycle is marginally affected by the also-ran of any of the products, which they hold (ref marketing91. com limitation PLC online).