### 날짜 : 2023-11-25 20:24
### 주제 : 5.1 Product Life Cycle #마케팅 #공부
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# **5.1 Product Life Cycle**
> The product life cycle (PLC) is a fundamental concept in marketing that represents the stages a product or service goes through in its market existence. Understanding the PLC is essential for developing effective marketing strategies and making informed business decisions. Here's a detailed look at the key aspects of the product life cycle:
#### **1. Introduction Stage**
- **Characteristics:** This is the initial stage when a new product is introduced to the market. Sales are typically low, and the product may not be profitable yet.
- **Marketing Focus:** Companies invest heavily in marketing and promotion to create awareness and attract early adopters.
- **Challenges:** High development and marketing costs, slow sales growth, and potential challenges in establishing a customer base.
#### **2. Growth Stage**
- **Characteristics:** In this stage, sales begin to grow rapidly as the product gains acceptance. Competitors may enter the market.
- **Marketing Focus:** Companies continue marketing efforts to expand market share. Pricing may remain stable or decrease slightly.
- **Challenges:** Competition intensifies, and companies need to maintain quality and customer satisfaction.
#### **3. Maturity Stage**
- **Characteristics:** Sales stabilize in the maturity stage, with slower growth rates. The market becomes saturated, and competition is high.
- **Marketing Focus:** Companies focus on retaining market share, cost efficiency, and differentiating their products.
- **Challenges:** Intense competition can lead to price wars, and companies need to innovate to stay relevant.
#### **4. Decline Stage**
- **Characteristics:** In the decline stage, sales and profits start to decline as consumer interest wanes or shifts to newer products.
- **Marketing Focus:** Companies may choose to discontinue the product or maintain a niche market. Marketing efforts may be reduced.
- **Challenges:** Managing declining sales and deciding whether to phase out the product or revitalize it.
#### **Strategies Along the Product Life Cycle**
- **Introduction:** Focus on creating awareness, building a strong brand, and capturing early adopters. Pricing may be high to recover development costs.
- **Growth:** Expand market share, improve product features, and consider pricing adjustments. Advertising and promotion remain important.
- **Maturity:** Maintain market share, control costs, and explore product extensions or variations. Focus on customer loyalty and service.
- **Decline:** Decide whether to discontinue, revitalize, or maintain the product in a niche market. Manage costs and inventory.
#### **Extension Strategies**
- Extension strategies aim to prolong the product life cycle. They include product improvements, line extensions, entering new markets, or rebranding.
#### **Product Portfolio Management**
- Companies manage a portfolio of products with varying life cycle stages, ensuring a balance between cash cows (mature products) and stars (high-growth products).
Understanding the product life cycle helps marketers adapt their strategies to each stage, allocate resources effectively, and make decisions regarding product development and management. It's a valuable tool for maximizing the lifespan and profitability of products in the market.
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