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Product Management Life Cycle - Using Product Life Cycle Management

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Product life cycle management refers to the shelf life of products, from conception and birth of the product before and after it hits the market, its gradual decline, and strategies to get the most profit from a product before it is rendered obsolete or stops selling. As products are promoted through advertising, the marketing campaign must change over time to adapt to changes in the market demand for this product as its demand initially goes up, levels off, then eventually goes down with time. It is the goal and responsibility of every company to get as much profit out of a single product during its time on sale in the market, or in other words, its life cycle.

In the world of product management, life cycle refers to its time on store shelves or in the marketplace. Product life cycle management is very important to any sales team committed to the task of seeing marketing goals completed above and beyond expectation, bringing in more money for the company or companies manufacturing, implementing, and distributing the product. It’s important to bear these considerations in mind when formulating a sales or advertising campaign to get your product into the hands of consumers. Product life cycle management is based on several qualified assumptions about how well a product is selling in the marketplace, and attempts to determine where the product is in this cycle are hit and miss. However, it is a helpful strategy which allows companies to market their products more efficiently than through blind sales campaigns without any targeted goals. The information obtained through this mode of thought, while not completely reliable, is a good way to gauge an audience’s response to a product, no matter how long or how short the period of time it has been for sale on the national or global market.

Initially, the cost for a new product is high, usually as high as it ever will be. As demand for this new product comes down, the company typically lowers the price of the product to accommodate this leveling off of demand. It makes good business sense to gauge the trends of buyers to match the price accordingly, thus making consumers happy and making the most profits possible for the company making the product. Later on, production volumes will usually go up as well in response to the lessening demand for the product, and the price of the product will be reduced even more. At this stage, competing products may also take away from the overall sales volume, making it necessary to lower the price even more. As this trend continues toward the end of the product’s life cycle, it finally becomes a challenge to manage a profit from the product as the cost of production begins to outweigh the sales demand, forcing the company to slash prices and manage advertising to offset this effect. Finally, it becomes necessary to discontinue the product altogether.

This mode of thought in marketing is very useful for global marketing campaigns, allowing companies to get their products off the ground and make the most money they can from the sale of the product before its demand decreases to the degree that it is no longer profitable to manufacture it. Although this marketing strategy applies to many products the world over, it does not apply to all products. Some products and specific brands of products have been in production for many decades, but have yet to see a decline in sales or popularity. For this reason, the product life cycle management approach to marketing must be applied with care, and only when applicable to the situation. Taking on newer and better products is an ongoing profit strategy for companies with more than one product to sell, and whether or not to take the PLCM approach is up to the decision makers, and is dependent upon market conditions in which the product is being launched, as well as the nature and shelf life of the product itself. This useful method of boosting and maximizing sales volumes has been around for many years, and it will continue to be an important part of the way companies do business.

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