Importance of product life cycle in business includes various points to determine the marketing strategies related to the particular product. The Importance are:-

1. It works as a forecasting tool,
2. It works as a planning tool,
3. It works as a control tool,
4. It provides for marketing programs,
5. It provides an estimate for profits,
6. It helps in the development of new products.

1. It works as a forecasting tool-

This is the first importance of product life cycle and it means is an important tool for sales forecasting because with the study of product life cycle management becomes aware of a problem that a product faces at different stages.

This tool also helps to determine the future work and goals of a necessary product company and also helps to study the market conditions regarding their sales potential. It can be very helpful for your future business expectations.

2. It works as a planning tool-

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This is the second important and it means is an important tool used for planning a particular object because it provides necessary data to plan marketing strategy and policy for compilation.

It also helps to adopt the competitor’s policies and programs for making a suitable marketing strategy. This tool is very important for making the data reports of product life cycle management.

3. It works as a control tool-

This is the third importance of product life cycle and it means it helps in controlling because the marketing manager can make the necessary arrangement to make a product available to the market and repair for plans to control losses.

In this tool, a marketing manager plays an efficient role in calculating the control work. This tool also helps to decide the plan’s strategy and this tool is also designed to analyze the plan so that it can detect whether the work or project is going well or wrong.

4. It provides for marketing programs-

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This is the fourth importance and it means the various plans, policies, procedures, and strategies are followed in the different stages of the product life cycle. Thus management can prepare marketing programs accordingly to achieve success.

Marketing programmes are also very important for the development of product situation.

Also Read:

• Marketing Strategies of a Product Life Cycle

Marketing Programmes are designed by the marketing manager for the achievement of marketing objectives. Marketing Programmes includes various things they can build the proper report for market analysis and those things are: collect data, create surveys, competitor analysis, sales forecasting, find the ideal customers, and so on.

5. It provides an estimate for profits-

This is the fifth importance of product life cycle and it means the rate of profit increases or decreases vary with the turnover ratio of an organization. At the introductory stage, profits are negligible after which they go and began to fall gradually and then become nil.

All this can be stimulated through the study of product Life Cycle. If profit will decrease, that means the business is at a declining stage and vice versa.

6. It helps in the development of new products-

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This is the sixth importance and it means, as we know, the life of a product is always limited. Thus management tries to improve its existing products or develop a new. It can be done by the events that take place in the market, promotional plans in the market, and also knowing their pricing policy to prepare for the development of new products if required.

The Life Cycle of a product begins with its entry into the market and passes through the stages of market development, maturity, and end.

I hope you learned the Importance of Product Life Cycle concept. If your concept has been cleared. So please do Like, Share, and Comment…

Also Read:

• Marketing Strategies of a Product Life Cycle