Managing the product through successive stages of the product life cycle is an important role for a product manager. Assess the three ways to manage a product through its life cycle including examples to help clarify your assessment. Indicate the reasoning why you would prefer one method over another in a given situation. You can use any product in your examples.
Every PLCM product life cycle management depends on the type of product we are a business of. Generally, Product life cycle determines where the business is heading to. There are 4 stages and they are
For a new product, in the earlier parts of the product lifecycle, the cost of promoting the product may be larger than the revenue it brings in. Or it can be successful if marketed effectively. These products will be increasingly profitable during the Growth and Maturity phases. This stage is the Introduction.
With introduction stage, it is having innovative ideas of advertising with big media agencies. This is the stage when the product of the company is first introduced into the market. This is the period of slow sales growth of the product. The profits at this stage are almost non-existent as the company had heavy expenditures on introduction of product in the market. Ex: Sponsorship ads showing up in breaks of soap, Reality shows, sports channel, Cartoon channels.
While in the growth Stage Company has to achieve break-even point and maximize their profit as they are now well developed company and has a positive image in the mind of the consumers. In the maturity stage Company are at its full peak and all the super profit opportunity has been achieved and now they are to choose to diversify their company. In the last stage of declining, the company has to shut down when they are not able to achieve a variable cost.