The object life-cycle is similar to that of human life. Just as human life cannot survive indefinitely, in the same way the life of every thing is also limited and that too cannot be sold indefinitely without making necessary changes in it. This is the reason that a manufacturer or seller has to make changes in its commodity mix policy from time to time and accordingly new items are added to the commodity mix or commodity line or the goods mix by stopping manufacturing old items. Or the object line is truncated or the properties of existing objects are changed. The life of a commodity begins when it is first placed in the market for sale. Gradually, there is an increase in the market of that commodity and its demand reaches its peak and after that gradually there is a decrease in its demand due to decrease in sales.
(1) According to Arch Patton, “The life cycle of an object is in many respects parallel with the human life cycle, the object is born, has an impulsive growth, reaches a vigorous maturity and then collapses.” state is attained.”
(2) According to Philip Kotler, “The life-cycle of a commodity is an attempt to recognize that the sales history of a commodity consists of various stages—sales history passes through four stages known as introduction, growth, maturity. And call it by the name of Fall.
(3) According to Lipson and Darling, “Commodity life-cycle refers to those stages of market acceptance in which the condition of a product from its market inception to its market death. These conditions are of market introduction, market development, market culture, market collapse and market death.
Based on the above, it can be concluded that there are many stages from the beginning of the product to its end. The product life cycle is the period in which a commodity begins, grows and then ends.
How long the life cycle of a product will be depends on the nature of the product. Some goods (eg, fashion items have a very short life span. That is, they complete all the stages of their life in a short time, whereas, on the contrary, some things have a very long life span, such as machines. , medicines etc. Just as some human beings get separated from the market without going through all the stages of their life time.
Various Stages of the Product Life-Cycle The different stages of the product life-cycle can be explained in basically six headings with the help of the following diagram:
(1) Introduction – This is the initial stage of the life cycle of the product. Under this, the product is presented in the market and efforts are made to introduce the customers to it. Consumers are hesitant to buy the product because they are new and unfamiliar with it in general. As a result, the sales of the product decrease in this stage. Due to less sales, profits are also less. In this stage the cost increases as a lot of promotional expenditure is done to get the approval of the consumers. This stage is very risky. Many products fail at this stage.
(2) Growth- The product reaches the stage of development after passing the presentation stage. In this stage there is a rapid increase in sales. Attracted by more sales and profits, competitors also try to enter the market in greater numbers. The root cause of sales growth in this stage is the special promotional efforts made in the presentation stage.
(3) Maturity – In this stage also sales continue to increase, but its speed decreases, that is, sales growth does not occur at the pace at which it occurs in the stage of development. Selling momentum slows down mainly due to the entry of more and more competitors into the market.
(4) Decline – In this stage the sales of the product start decreasing. Because the product tends to substitute with better products. The reason for the decrease in sales can also be new improved competitor products or other substitute products.
(5) Saturation – Saturation is the state of a product when its sales are at their highest level. This situation is maintained till the time its substitute goods come in the market.
(6) Obsolescence or Death – This is the condition of the product, when its sales become almost negligible. The possibilities of profit are completely exhausted. Therefore, it is advisable to abandon the object. In this case the sale of the product becomes dead.
Factors Influencing the Product Life-Cycle
The major factors affecting the object life cycle are:
(1) The speed of technological change The faster the technological change, the faster the life cycle of objects will be shortened and if these changes are slow then the life of the object will be as long. For example, technological changes are taking place in countries like USA, Russia, UK and Germany etc. As far as India is concerned, technological changes are going on at a slow pace, so the life of goods here is long.
(2) Speed of market acceptance The speed of market acceptance also shortens the life of the commodity. Speed of market acceptance means in simple language the speed of acceptance by the customers. If customers are accepting a new item at a faster rate, it means that the life of that type of old item will be decreasing at a faster rate. Similarly, if the new object is being accepted slowly, the old object will continue to move and its life-cycle will be longer.
(3) Competitive penetration Competitive penetration also affects the speed of the life-cycle of an object. If new-competitive goods are coming in the market at a faster rate, then it will affect the life cycle of the goods and their life cycle will be shortened. Similarly, if competing goods enter the market too late, the life cycle of such goods will be longer.
(4) Economic forces- Economic forces also affect the life cycle of the commodity according to the arc pattern.
(5) Service-class strategy If people of different abilities and abilities are employed in an organization, then the life cycle of the objects of such organization is also affected. For example, if qualified persons are appointed by opening research and development department in an organization at the stage of presentation itself, then the life cycle of such object is affected by this and the resources and capabilities can be properly exploited.
(6) Protection by Patent – The life-cycle of goods whose patent is registered is longer than other goods. As the patent protection period for these products comes to an end, their product life-cycle reaches maturity. When price competition is done by other similar products, the products immediately from their developmental stage reach the stage of high level of competitive maturity.
Utility of Product Life-Cycle for Marketing Manager
Knowledge of commodity life cycle is very useful for a marketing manager. It can be understood as follows.
(1) As a forecasting tool, the life-cycle of a commodity alerts the marketing manager in advance that many problems will be faced when the commodity reaches the stage of maturity and decline. Thus this idea proves useful in forecasting.
(2) The object as a planning tool is the utility of the life-cycle as a planning tool. In this, knowledge of the marketing strategies to be adopted by the competitors at different stages is obtained, on the basis of which the marketing manager gets help in his planning.
(3) As a control tool – Knowledge of object life-cycle proves useful as a control tool also. For example, if an item completes the presentation stage in three months, but if the same type of item takes longer, the marketing manager is forced to consider whether a different strategy is needed for the item. The need or thing is such that it will never reach the stage of development.
(4) Development of new things The life-cycle of things teaches that just as human life is not immortal, in the same way the life of things is also not immortal. Therefore, marketing managers should pay equal attention to the development of new goods so that their goods do not fall into a state of decline.
(5) Variation of Marketing Program The concept of commodity life-cycle tells the marketing manager that different marketing efforts and policies are adopted at different stages of the commodity. The efforts and policies which are adopted at the stage of presentation of the object cannot be adopted at the time of degradation of the object.
(6) The predictable path – the commodity life-cycle tells the marketing manager that in the presentation stage there are no profits but only losses, while in the growth or development stage, profits increase. With maturity there is some reduction in profits whereas in decline or decline, profits start falling sharply and losses start happening.
(7) Basis of new item planning – For the marketing manager, the study of the life cycle of the object is an important basis in preparing plans for the presentation and development of new items and converting them into action.
(8) Basis of Marketing Strategy The life-cycle of the commodity is considered to be the basis of marketing strategy because marketing programs are designed accordingly.
