IT chymes .
@ | Updated 21 Sep. 2017
Importance of Product Life Cycle in Marketing strategy
1. Predictive Tool- Since a product has a predictive life pattern and the problems likely to be encountered in different stages of PLC are known, the management is pre-warned of the likely changes in the product position. For eg., behaviour patterns of sales, profits, dealers, competitors, in different stages are known. Although it is difficult to forecast these changes with any degree of exactness, it undoubtedly provides a preview of the broad spectrum of product events likely to occur.
2. Planning Tool- Once product life pattern and behaviour of forces lying on it are known, management is better placed to plan its strategy in advance so as to fully exploit the product potential. Product modification, promotion and pricing strategies and dealer motivation program may be planned much earlier than the market conditions warrant.
3. Control Tool- In case of a multi-product company when a number of products are simultaneously offered in the market, not all of them fair identically. Some fare better, some not. When their position in the PLC is monitored, it may indicate the types of changes required in the marketing strategy so as to fully exploit their potential and attain maximum market share. Thus, it serves as an important market tool.