What is a life cycle 3
The graph of the life cycle in the figure below represents the idealized normal course for the changes in sales or profit of a successful product accepted by the market. Depending on the product type, faster and slower, flatter or steeper courses of the life cycle of products are possible. As a rule, the life expectancy of the products will increase the closer they are to the raw materials and decrease the closer they are to consumption.
See also: product life cycle concept, product life cycle
is the presentation of the "life cycle" of a product from the time it was launched on the market to the time it was withdrawn from the market. On the one hand, one considers the length of time in which it is sold and, on the other hand, the different sales volumes over time. Ideally, it is assumed that the product is initially rarely sold (because there is a lack of awareness, bias on the part of consumers and mostly competing products), later increasingly until the point in time when the market is more and more saturated, and from this phase again in smaller amounts. A distinction is therefore made between the following phases: 1. introductory phase, 2. growth phase, 3. maturity phase (increasing saturation of the market) and 4. degeneration phase. The American scientist Rogers assigned corresponding types of consumers to these phases: 1. Innovators: cosmopolitan, willing to take risks, high purchasing power; 2. Early adopters: similar to innovators; 3. Early Majority: follows the consumption of the first two groups, see follower effect; 4. Late Majority: waiting for the product to prove itself; 5. Laggards (procrastinators): uninformed, low income. Each phase of the life cycle requires separate measures in the context of the • paragraph.
The life cycle models represent biologically oriented concepts for analyzing the “life cycle” of a product, a product group of services or a type of business. In the literature, the product life cycle concept has found the most widespread use. The life cycle of a product is the expected or empirically determined success development of a product during the period in which the product is on the market. By determining the turnover, sales volumes, profit or contribution margin development, statements should be made primarily about the use of marketing-political instruments, buyer behavior, the types of entrepreneur and the market and competitive structure. For this purpose, the “life story” of a product from its market launch to its withdrawal from the market is usually divided into five distinct phases (life cycle, phases of the). The empirical studies on the product life cycle are not generally applicable. The life cycle concept is hardly suitable to provide a basis for a demarcated marketing concept. In addition to the inadequate determination of the life cycle curves and the delimitation of the life cycle phases, the assumption of a "cycle or phase-determined" behavior, the weaknesses of the life cycle models lie in an insufficient differentiation according to goods categories and unsatisfactory delineation of the concept of goods (e.g. the connection to services). However, the approaches do give a certain rough orientation.
The phases passed through from the development of a bank service to its termination. The concept comes from the material goods area; it is generally not or can hardly be represented in the same way for bank services.
The life cycle of a subject or an object, divided into typical sections or phases (examples: product life cycle, market phases).
Synthetic systems (companies), like natural organisms, are subject to the law of "becoming and passing away". Analogous to biology, an inevitable development is assumed. A deterministic and time-related market reaction model is derived from this. The product life cycle therefore considers the development of results as a function of the passage of time, whereby a normal distribution (= Gaussian bell curve) is assumed ideally. The cumulative values result in a logistic function. The following objects can be considered: an industry market, a product line market, a product or program market. When discussing statements in the life cycle model, irritations often arise from the fact that there is uncertainty about the delimitation of the object to be examined. For example, a single product can be at the beginning of its life cycle, whereas the product line is already at a very advanced stage. In terms of its life cycle, the product line can in turn be classified differently than the industry of which it is part. See also life cycle analysis and product life cycle (with graphic representation).
The life cycle of a product can be divided into several phases, whereby it is assumed that a product will develop in terms of its development, launch and sales Phase 1: Development phase 1 Phase 2: I market development. Phase 3: Growth Phase 4: Maturity Phase 5: Decline Time Performance Momentum, consolidation and decline phases can be characterized. For the graphical representation of the life cycle, reference is made to the development of the quantitative sales, turnover or profit or contribution margin over time. In the literature, an ideal-typical curve shape is usually assumed, which corresponds to the curve shape according to the law of income (see p. 688): Empirical studies have led to very different curve shapes. The development processes for new products are seldom continuous, but are mostly characterized by “breaks”.
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