Product life cycle and its concept

By Fahad Usmani 50 Comments What is the difference between the project life cycle and the product life cycle? This is a question I have often been asked, and therefore, I have decided to write a blog post on it.

Product life cycle and its concept

The incredibly successful company that has brought us products like the iPhone and iPod. Both of these products quickly became must-have devices and sold phenomenally throughout the world. Unlike most companies, Apple was able to successfully develop an iPod killer. It did this with the future in mind, allowing them to ultimately retain the market.

What can the healthcare industry learn from such an approach? Specifically, it describes a number of commercialisation steps that each product goes through as it penetrates the market. Apple foresaw the ultimate decline of a dedicated personal music device—the iPod—in lieu of a more broadly useful device, such as the iPhone.

So, rather than dedicated time to building a better iPod, they focussed on building its perfect competitor. We all remember the white earbud headphones synonymous with iPods. As mentioned earlier, the product life cycle is separated into four different stages, namely introduction, growth, maturity and in some cases decline.

Introduction The introduction phase is the period where a new product is first introduced into the market. This typically requires a lot of resources and finances. As a result, many companies, startups especially, are practicing a new approach to product development known as The Lean Approach.

Product life cycle and its concept

The introduction phase is usually associated with slower growth as the public is not familiar with the product, the sellers may not be adequately trained to sell, and clear and definite distribution channels are yet to be established. Demand for the product is also quite immature at this stage. So how does this relate to healthcare you may wonder?

Well… a hospital may introduce a new ward. In this phase, one will see a lack of familiarity among patients about these new services, and even the healthcare providers themselves may not have enough knowledge to give enough information. This is normal and indicative of the stage the new product is at.

Growth The growth phase is when your product starts to sell at a much faster rate. The public is becoming increasingly aware of your product and word of mouth is starting to spread.

Demand is strong and the service is now booking out. Very soon, the product will begin to compete with new alternatives being introduced into the market. A good example of this stage in healthcare is the availability of a new pharmaceutical product.

Fresh from successful clinical trials, the drug is likely to generate attention in the media. Patients may approach their healthcare providers requesting that particular medication as a result of increased popularity or awareness. Decline The decline phase refers to the period when the product reaches its saturation point.

In this case, the price can start increasing, though the number of sales will decline. In this phase, a decision is needed: In healthcare, a suitable example could be a medical device or equipment such as a wheelchair.

As technology improves, the consumer market, including healthcare professionals who use that particular product may start to see it as old or outdated. They perceive the product as no longer being able to effectively provide the required care to the patient.

Product life cycle and its concept

The device sales will decrease sharply and the company needs to either improve the device, by offering a newer edition, or replace it with a better alternative. One that keeps up with the changes and needs of society.The progression of a product from its launch into a market, its growth and popularity and eventual decline and removal from the same market is known as the product life cycle.

It can be broken up into 4 basic stages: Introduction – Following product development, the marketing team develops a. System of defined steps and tasks such as strategy, organization, concept generation, marketing plan creation, evaluation, and commercialization of a new metin2sell.com is a cycle by means of which an innovative firm routinely converts ideas into commercially viable goods or services.

The theory of a product life cycle was first introduced in the s to explain the expected life cycle of a typical product from design to obsolescence.

2/1/04 AEW Services, Vancouver, BC © Email: [email protected] The Role of the Project Life Cycle (Life Span) in Project Management A literature review by R. Max Wideman. The progression of a product from its launch into a market, its growth and popularity and eventual decline and removal from the same market is known as the product life cycle.

It can be broken up into 4 basic stages: Introduction – Following product development, the marketing team develops a. Significance. Offered under different brands by competing firms, products fulfilling the same need typically do not have identical metin2sell.com differentiation of goods along key features and minor details is an important strategy for firms to defend their price from levelling down to the bottom part of the price spectrum and prevent other firms from supplying the same good to the same consumers.

Product Life Cycle - type, benefits, cost, Introduction, Growth, Maturity, Decline