Task: Select a product (name it) with which you are familiar. What stage is your selected product at in the product life cycle? Provide a rationale for your answer. Based on your knowledge of the product life cycle, what types of changes will occur to your selected product as it continues through the product life cycle? How will this affect the marketing of your selected product?
The product, personal computer has a huge product market in that as it has become a necessity. Thus it is required by anybody and everybody now as it is satisfying various kinds of needs such as information, entertainment, communication, professional and other needs. But there is lot of innovation which is happening in this industry and many new products are also there such as Laptop, PDA and other wireless devices.
Thus we can say that products go through several stages from conceptualization of the product to its end. A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.
Products tend to go through five stages:
1. New product development stage
* Very expensive
* No sales revenue
2. Market introduction stage
* Cost high
* Sales volume low
* High prices
3. Growth stage
* Costs reduced due to economies of scale
* Sales volume increases significantly
* Prices to maximize market share
4. Mature stage
* Costs are very low
* Sales volume ...
The solution discusses how a product's life cycle affects the changes in the product at different stages.