Factors affecting the life cycle of a product, Marketing Management

Assignment Help:

Factors affecting the life cycle of a product: there are many factors that affect the life cycle of a product. Statement of Joe Dean is very important in this regard. He said, "the length of a product life cycle is governed by the rate of technical change, the rate of market acceptance, and the ease of competitive, entry." Some of the important factors affecting the life cycle of a product are as follows:

1.       Rate of technical change: life cycle of a product is affected by the rate of change technical change the country. If the rate of technical change in the country is very high, the life of the products limited because new and improved products take place of old and the existing products. On the other hand, if the rate of change is not so high, the life of the product in that country may be longer. For example, the life cycle of products in India (where rate of technical change is not so high) is longer as compared to the life cycle of products in developed countries (where technical change is a higher rate).

2.       Rate of man at acceptance: the rate of customer also affects the life cycle of the products. If the rate of market acceptance is high, the life cycle of products in that country is limited. It is because the customers who have accepted the new products will soon stand out of the market. Similarly, if the customers accept the product at a slow rate, the life cycle of the of the products may be quite long. For example, in India, the market acceptance is very slow, and therefore, here life of the products is very long.

3.       Ease of competitive entry: the situation of competition in the market also affects the life cycle of the products. If the entries of competitions are easy and unchecked, the life of the products will be shorter as the new products will enter the market. As a result the existing products will be influenced out of the market. Country, if the entry of competitions is not so easy the life cycle of the products will be longer.

4.       Risk bearing capacity: the risk bearing capacity of the enterprises also decides the life cycle of its products. If the enterprises have risk bearing capacity, they can keep their product alive in the market for a long period as they can face the challenges of the market very effectively. For example, they can spend more amounts on the advertising and sales promotion to meet the competition in the market. But where the enterprises have no risk bearing capacity may fail to face the challenges of the market. They will soon with- drawn their products from the market. If they smell heavy risk. In such cases, the life cycle of their products will be shorter.

5.       Economic and managerial forces: enterprises having strong economic and managerial forces, can keep their products standing in the marketing and the life cycle of their product will be longer that of the life cycle of the products of those enterprises having weak economic and managerial base.

6.       Protection of patents: the life cycle of the products is fairly long if their patents have got registered. On the other hand, if the products are not patented their life is out short.

7.       Goodwill of the enterprises: if the goodwill of the enterprise is good in the market as the producer of goods quality products, its product will last long in the market as compared to the products of those enterprises whose goodwill is not good or which are not known to the public much.


Related Discussions:- Factors affecting the life cycle of a product

Brand equity, Brand E q ui t y: David Aakar described brand equity...

Brand E q ui t y: David Aakar described brand equity as the exclusive set of brand assets and liabilities that is connected to a brand. According to Aakar, brand equity is

Position errors, what are the marketion position errors in sri lanka

what are the marketion position errors in sri lanka

Jum jack flash, Do you think Jack is equipped with the managerial skills ne...

Do you think Jack is equipped with the managerial skills needed to head up a team that develops strategies for adapting existing company products into new products for sales in d

Discuss the different types of consumption, Question 1: "Perceived risk...

Question 1: "Perceived risk is a consumer's perception of the overall negativity of a course of action based upon as assessment of the possible negative outcomes and of the lik

Explain the term cost -pricing decisions, Explain the term Cost -pricing de...

Explain the term Cost -pricing decisions No business can survive unless it covers its cost of production and distribution. In large number of products, retail prices are c

Scope , SCOPE, OBJECTIVES AND PURPOSES OF  MANAGEMENT INFORMATION SYSTEM...

SCOPE, OBJECTIVES AND PURPOSES OF  MANAGEMENT INFORMATION SYSTEM   The scope and purposes of Management Information System can be better understood if we examine each word i

Discuss the benefits buyers get from the use of e-commerce, Question 1: ...

Question 1: (a) Define the following terms: (i) e-commerce (ii) e- business and (iii) e-marketing (b) Discuss the benefits that: i. buyers get from the use of e-c

Elements of the marketing, Elements of the marketing: the marketing thinki...

Elements of the marketing: the marketing thinking starts with the customer needs. Today each marketer wants to retain and satisfy the customer because of the intense competition.

Consumer behaviour, Consumer Behaviour       Consumer buying behaviour ...

Consumer Behaviour       Consumer buying behaviour refers to the buying behaviour of final consumer's individuals and households who buy goods and services for personal consump

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd