WHat is Product life-cycle management PLM ? (marketing)

 

Product life-cycle management (marketing)

 

Product life-cycle management (PLM) is the progression of business management's strategies throughout a product's life cycle.

 As a product progresses through its series of stages, the circumstances under which it is sold (advertising, saturation) change over time and must be managed.

Contents

• 1Goals
• 2Product life cycle
  • 2.1Extending the product life cycle
  • 2.2Characteristics of PLC stages
  • 2.3Identifying PLC stages

Goals

Product life cycle management's (PLM) objectives include shortening the time to market, enhancing product quality, cutting costs associated with prototyping, identifying potential sales opportunities and revenue contributions, maintaining and sustaining operational serviceability, and minimizing environmental effects at end-of-life. 

The business must comprehend its customers, markets, and rivals in order to develop successful new products. Product Lifecycle Management (PLM) combines people, information, business systems, and processes. 

For businesses and their extended supply chains, it offers product information. PLM solutions assist businesses in overcoming the growing complexity and engineering difficulties associated with creating new products for markets that are highly competitive around the world.

Product life cycle

The term "product life cycle" (PLC) refers to the period of time a product spends on the market in relation to financial and commercial costs and sales metrics. 

The product life cycle includes numerous phases, multiple professional disciplines, and a variety of processes, tools, and skills. The three presumptions made by PLC management are as follows:

• Each product has a life cycle because they have a finite lifespan.
• Each stage of a product sale has its own challenges, opportunities, and difficulties for the seller.
• Each stage of a product's life cycle necessitates a different approach to marketing, financing, manufacturing, purchasing, and human resources.

Once the product is created and launched onto the market, it must be managed effectively in order for customers to benefit from it. 

The industry conducts a thorough analysis of all external and internal factors, including laws and regulations, the environment, economics, cultural values, and market needs, prior to entering any market. 

The product must be sold before it reaches the end of its useful life from a business standpoint in order to be successful. 

There are a few strategies used to ensure that the product is sold within the designated period of maturity because the product's expiration could shock the business's overall profitability in terms of profitability.

Extending the product life cycle

By increasing sales, it is possible to prolong the life cycle of a product.

• Advertising:Its goal is to increase its audience and attract more potential clients.
• Exploring and entering new markets: It is possible to increase sales by conducting market research and introducing the product (or an altered version of it) to new markets.
• Price reduction:Discounts and price reductions draw a lot of customers.
• Adding new features: adding value to the product in order to improve its usability or draw in a larger audience.
• Packaging: Target customers are influenced by new, appealing, practical, or eco-friendly packaging.
• Changing customer consumption habits: Promoting new consumer trends may result in an increase in customers.
• Special promotions: generating interest by making offers like the jackpot.
• Heightening interest: Customers who fit certain profiles are drawn to many of the following: environmentally friendly production methods, favorable working conditions, supporting charities that fight against diseases like cancer, oppose war, aid refugees, protect the environment, and protect animals, among others.

It's crucial to note that all of these methods depend on advertising to gain popularity. Advertising requires that others target different potential customers rather than using the same message repeatedly.

Characteristics of PLC stages

There are the following major product life cycle stages:

1. Market introduction stage

	At this point, the product has just been released onto the market for the first time, and while sales are beginning to slowly and steadily increase, there is currently little to no profit being made. The product's initial market is uncompetitive, and the business initially invests in advertising and uses a variety of other tools for promotion to inspire and raise consumer awareness, leading to discerning consumer demands for a specific brand. The products begin to gain distribution because they are initially new to the market. At this point, the product's quality is unknown, and its price will also be determined as low or high. costs are very high slow sales volumes to start little or no competition demand has to be created customers have to be prompted to try the product makes little money at this stage
	2. Growth stage In the growth stage, the product is clearly present on the market, has devoted customers, and experiences rapid sales growth. More potential customers are learning about the product and giving it a try. Customers are becoming increasingly satisfied with the product and are continuing to purchase it. The frequency of product repetition for trial purchases has increased. More enticing and attractive inventions are starting to flood the market, thanks to competitors. This contributes to increased market competition and drives down the cost of the goods. costs reduced due to economies of scale sales volume increases significantly profitability begins to rise public awareness increases competition begins to increase with a few new players in establishing market increased competition leads to price decreases
	3. Maturity stage The product's cost has decreased during the maturity stage as a result of the product's increased volume and the beginning of the curve effects. Additionally, it appears that more and more rivals are leaving the market.  Thus, there are now very few customers left for the product, which lowers sales of the product. In comparison to the profit generated, the product is declining and it costs more to attract new customers at this level. Recalling the outlet distribution is aided by the brand or product differentiation achieved through price reductions and rebates. Additionally, the overall cost of marketing is reduced by improving distribution and promotional effectiveness through brand and segmentation switching. Due to experience curve effects and rising production volumes, costs are reduced. Market saturation is reached as sales volume reaches its peak. increased entry of rivals into the market Prices typically decrease as a result of the abundance of alternatives. To keep or grow market share, brand differentiation and feature diversification are prioritized. lowered industrial profits
	4. Saturation and decline stage Due to the product's removal from the market, both the profit and the sales of the product have started to decline at this point. At this point, the product's market began to experience declining sales and declining cash flows. At this point, the product may be kept, but there should be fewer advertisements. Costs start to be less than ideal. lower sales volume Prices and profitability drop Efficiency in production and distribution becomes more difficult to achieve than higher sales. Note: Product termination typically only signifies the exit of a single participant within the context of an ongoing business program, not the end of the business cycle.

Identifying PLC stages

Finding patterns in some of the common product features at each stage is possible, but determining the stage of a product is more of an art than a science. 

It can be very challenging to pinpoint a product's stages when it is transitioning. More recently, it has been demonstrated that user-generated content (UGC), such as online product reviews, has the ability to expose buyer personality traits, which can then be used to determine the stage of a product's life cycle.