What are the advantages and disadvantages of the product life cycle, and what are the characteristic

Product Life Cycle Theory.

The disadvantages are: 1. The starting and ending points of each stage of the product life cycle are not easy to confirm.

2. Not all product life cycle curves are standard S-type, and there are many special product life cycle curves.

3. It is impossible to determine whether the product life cycle curve is suitable for a single product project level or a product collection level.

4. The curve only considers the relationship between sales and time, and does not involve other variables that affect sales, such as cost and **.

5. It is easy to cause "marketing myopia", thinking that the product has reached the recession period and prematurely excludes the good products that still have market value from the product line.

6. Product decline does not mean that it cannot be regenerated. With the right improvement strategy, the company may be able to create a new life cycle for its products.

The market characteristics of each stage of the product life cycle are as follows:

1. Market characteristics in the input stage: customers are not familiar with the product, only a few customers who pursue novelty will buy, and the sales volume is low; a large amount of promotion costs; Products cannot be produced in large quantities, so the cost is high, sales growth is slow, and enterprises may lose money; The product needs to be further improved.

2. Market characteristics in the growth period: a large number of new customers began to buy, and the market gradually expanded; The products are mass-produced, the production cost is relatively reduced, the sales volume rises rapidly, and the profit also grows rapidly; Competitors enter the market to participate in the competition, resulting in an increase in similar products, a decrease in the growth rate of corporate profits, and finally a peak in life cycle profits.

3. Market characteristics of the mature stage: the market demand tends to be saturated, there are few potential customers, and the sales growth is slow until it declines; Competition is gradually intensifying, products are reduced, costs are increasing, and enterprises are declining.

4. Market characteristics during the recession period: the emergence of new products or new substitutes will change consumers' consumption habits and turn to other products, thereby rapidly reducing the sales and profits of the original products.

The product life cycle is the service life of a product, the time it takes for a product to disappear from birth. The life cycle of a product is closely related to the performance of its own products, market demand, market environment, national policies, etc., most of which can be: introduction period, growth period, maturity period, and decline period.

Next, let's take a closer look at the four life cycles of a product.

Introduction period: refers to the product from design and production to the market to enter the testing stage.

Growth period: When the product enters the introduction period and the sales are successful, it enters the growth period.

Maturity period: refers to the product into mass production and stable into the market, after the growth period, with the increase in the number of people who buy the product, the market demand tends to be saturated.

Recession period: refers to the product entering the elimination stage.

Characteristics of the product life cycle:

At different stages of the product life cycle, there are different characteristics in terms of sales volume, profits, buyers, market competition, etc.

Introductory period Growth period.

Maturity Decline.

Pre-Late Stage.

Sales volume is low.

Rapid growth continues to grow.

There is a downward trend.

Decline in profits.

Tiny or minus-large.

The peak gradually decreases.

Low or negative buyers.

Lovers of novelty.

More Volkswagen.

Volkswagen followers.

There is little competition.

Rise increases.

Much less.

The product life cycle, also known as the "product life cycle". It refers to the whole movement process of the product from the beginning of preparing to enter the market to being eliminated and withdrawn from the market, which is determined by the production cycle of demand and technology.

It is the economic life of a product or commodity in the market movement, that is, in the process of market circulation, due to the change in consumer demand and other factors affecting the market, the cycle of commodity from prosperity to decline.

Brief introduction. The concept of product life cycle, abbreviated as PLC, compares the sales history of a product to the life cycle of a person, going through the stages of birth, growth, maturity, aging, and death. As far as the product is concerned, it is to go through a stage of development, introduction, growth, maturity, and decline.

1) Product development period.

From the idea of developing a product to the period of successful product manufacturing. During this period, the sales of this product were zero, and the company's investment continued to increase.

2) Introduction period.

New products are newly launched and sales are slow. Due to the high cost of introducing products, profits are usually low or negative at the beginning, but there are no or very few competitors at this time.

3) Growth period.

There are the following factors that affect the product life cycle:

1. Product development period: from the idea of developing products to the successful period of product manufacturing. During this period, the sales of this product were zero, and the company's investment continued to increase.

2. Introduction period: new products are newly launched, and sales are slow. Due to the high cost of introducing products, the initial balance period is usually low or negative, but there are no or very few competitors at this time.

3. Growth period: The product has been quite well-known after a period of time, with rapid sales growth and significant increase in profits. However, due to the rapid growth of the market and profits, it is easy to attract more competitors.

4. Maturity period: At this time, the market growth trend slows down or is saturated, the product has been accepted by most potential buyers, and the profit gradually declines after reaching the peak. At this time, the market competition is fierce, and the company needs to invest a lot of marketing expenses in order to maintain the product position.

5. Recession period: During this period, the sales volume of products declined significantly, and profits also fell sharply. Survival of the fittest, market competitors are becoming more and more empty.