FINAL Product Life Cycle

8/11/2019 FINAL Product Life Cycle

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Definition-Product life cycleis a business technique thatattempts to list the stages in the lifespan ofcommercial/consumer products

Characteristics

a) limited lifeb) Product sales pass through distinct stages

c) Profits changes

d) Different strategies in each life cycle stage

e) Products require different marketing,financial, manufacturing, purchasing, and humanresource strategies in each lifecycle stages.
http://textilelearner.blogspot.com/2012/02/textile-manufacturing-process-process.htmlhttp://textilelearner.blogspot.com/2012/02/textile-manufacturing-process-process.htmlhttp://textilelearner.blogspot.com/2012/02/textile-manufacturing-process-process.html


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Donald Clifford in 1965,

-Collection of information about the products behavior

-Analysis of competitor short-term strategies

- Analysis of number of competitors in respect ofmarket share.

- Collection of information of the life cycle of similarproducts

- Estimation of sales volume for 35 years from

product launch. - Estimation of the total costs compared to the total

sales for 35 years after product launch


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Style, Fashion, and Fad Life Cycles


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Introductory Stage

High failure rates

Little competition

Frequent product modification

Limited distribution High marketing and production

costs

Negative profits

Promotion focuses on awarenessand information

Intensive personal selling tochannels

Full-Scale Launchof New Products


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Increasing rate of sales

Entrance of competitors

Market consolidation

Initial healthy profits

Promotion emphasizes brand ads

Goal is wider distribution

Prices normally fall

Development costs are recovered

Offered in moresizes,

flavors, options

Growth stage


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Declining sales growth

Saturated markets

Extending product line

Stylistic product changes

Heavy promotions to dealers and consumers

Marginal competitors drop out Prices and profits fall

Niche marketers emerge

Many consumerproducts are inMaturity Stage

Maturity Stage


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Long-run drop in sales

Large inventories of

unsold items

Elimination of all nonessential

marketing expenses

Rate of decline depends onchange in tastes or

adoption of substitute products

Decline Stage


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Copyright2008 McGraw-Hill Australia

Pty Ltd

PPTs t/a Marketing: The Coreby Kerin et al

Slides prepared by Andrew Hughes,

How stages of the product life cycle relate to a firms marketing

objectives and marketing mix actions

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Copyright2008 McGraw-Hill Australia

Pty Ltd

PPTs t/a Marketing: The Coreby Kerin et al

Slides prepared by Andrew Hughes,

Managing The Product Life Cycle

An important task for a firm is to manage its

products through the successive stages of

their life cycles.

Marketers rely on three ways to manage a

product through its life cycle:

modifying the product.

modifying the market.

repositioning the product.

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Product design and evaluation

Successful product design involves learning from other designs which have features similar to theones you want in your product.

You also need to be able to evaluate the quality of your product and to understand how tomaintain quality throughout the design and manufacturing stage.

Approaching design

It is important that you, the designer, are able to identify the features of a product that make it

either a success or failure. The first stage of design of a newproduct involves studying other products with similar or desirable

features, through identification, analysisand evaluation.

This process helps the designer in a number of ways:

It avoids copying other designers' work (this is called plagiarism).

It identifies features or aspects of existing products which could be improved - such as by reducingthe cost, adding extra features, making it easier or more comfortable to use or making it look moreattractive to certain groups.

It can identify technologies or ideas which could be transferred or applied to a new function orarea.
http://www.bbc.co.uk/schools/gcsebitesize/design/systemscontrol/designevaluationrev1.shtmlhttp://www.bbc.co.uk/schools/gcsebitesize/design/systemscontrol/designevaluationrev1.shtmlhttp://www.bbc.co.uk/schools/gcsebitesize/design/systemscontrol/designevaluationrev1.shtmlhttp://www.bbc.co.uk/schools/gcsebitesize/design/systemscontrol/designevaluationrev1.shtmlhttp://www.bbc.co.uk/schools/gcsebitesize/design/systemscontrol/designevaluationrev1.shtmlhttp://www.bbc.co.uk/schools/gcsebitesize/design/systemscontrol/designevaluationrev1.shtmlhttp://www.bbc.co.uk/schools/gcsebitesize/design/systemscontrol/designevaluationrev1.shtmlhttp://www.bbc.co.uk/schools/gcsebitesize/design/systemscontrol/designevaluationrev1.shtmlhttp://www.bbc.co.uk/schools/gcsebitesize/design/systemscontrol/designevaluationrev1.shtml


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Evaluating design

Sucessful designs: Apple iPod and Dyson vacuum cleaner

What makes a design successful? How do you judge a design? There are a wide rangeofmethodsand strategies for analysing and evaluating designs. The two methods that follow are easy-to-remember acronyms:

F.A.C.E. value

Function - What does it do and how does it work?

Aesthetics - Is it attractive, why and what makes it so?

Construction - What is it made from, how and why?

Economics - How much does it cost and is this good value for money?

C.A.F.E.Q.U.E.

Cost - How much does it cost and is it good value for money?

Aesthetics - Is it attractive, why and what makes it so?

Function - What does it do and how does it work?

Ergonomics - How easy or comfortable is it to use?

Quality - How well is it built, what materials are used?

User - Who is it for and is it appropriate? Environment - What effect do the product's manufacture, use and disposal have?

A product's unique characteristics and features are called the product specification. You need to be able to identifythese and compare them with the specification of other similar products. This will help you to evaluate howsuccessful a product's design has been.
http://www.bbc.co.uk/schools/gcsebitesize/design/systemscontrol/designevaluationrev2.shtmlhttp://www.bbc.co.uk/schools/gcsebitesize/design/systemscontrol/designevaluationrev2.shtml


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Quality control

Quality control or QC is a way of controlling a manufacturing system. It is accomplished by a series of checks and inspections throughout the designand making of the product to ensure it is being made to specification and to the required standard. The results of the quality control checks are thenfedback into the system to rectify any shortcomings. Quality control is also sometimes known as quality assuranceor QA.

The criteria you might use for checking the quality of a circuit board are listed below.

Neatness of soldering

Top view - circular shape around leg.

Side view - 'volcano' shape.

Appearance - bright and shiny.

Accuracy of soldering

Solder located evenly around component leg.

Solder on the pad not along the track.

No solder 'stains' or 'dribble' on the printed circuit board (PCB).

Circuit performance

The circuit works the way it was intended.

The circuit functions consistently over time.

The circuit works whilst being shaken.

Product assembly

The PCB, parts, and components are secure.

There is no overlap of assembled parts.

The circuit works even when shaken.

Quality of finish

It is a marketable product (ie you might buy it).

It is an attractive product.

It is well made.

As a systems and control designer you need to be able to devise and apply test procedures to check the quality of your work, as well as identifycritical stages of the manufacture for quality checks.

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FINAL Product Life Cycle