Describe in detail the progression that products and service

Describe in detail the progression that products and services undergo during the product life cycle. How does the marketing mix play into the PLC model in each stage? Types of buyers? How does the Boston Consulting Group interface with the PLC?

Solution

product life cycle consists of 4 stages during its life, named as introduction, growth, maturity and decline.

in introduction stage we introduce our product in the market with the perdetermined aspects. we send our product into the market with great quality and features which can fulfill the needs of the customers.

the second stage is growth stage: in this our sales will boos in the market and majority of the new customers will purchase our products. in this level we introduce so many variations in our product. we may introduce small variotions in our prodct like package, different colors, smells and so on

maturity: at this level our produt reaches all the target cusomers and further we can not expect good number of new customers. there are chances to expect a little number of new cusomers. at this level our sales are high, huge volumes can be sell in market, company can recieve good revenues as well as profits. if we stay at this period for a longer period, we can enjoy huge profits.

decline: once we reach the top, we need to introduce new variants in the product, with new features. otherwise the customers may not come to our product and our sales comes down. at this level we can not expect profits.

the promotional activities plays important role in the each stage. while we are in introduction stage, we require huge advertisements to reach potential and target customers. for that we should select the correct channel to promote our product. and even in growth stage also we need to spend higher amounts on promotional activities. but when we reach the maturity level, we can minimise the expenditure on promotional activities. and in decline stage, the role of promotional activities are zero.

BCG matrix explained a 9X9 matrix which speaks about a products life cycle and its promotional expenditure. and it is a good practice to implement practically.