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Product life-cycle theory

The created image is a vibrant and dynamic illustration of the product life cycle stages for a smartphone. It visually represents the five stages: Introduction, Growth, Maturity, Saturation, and Decline. Each stage is depicted with distinct visual elements such as a launching smartphone, a rapidly increasing sales chart, a stable market with multiple brands, market saturation with many smartphones, and outdated models in decline. The background is modern and colorful, reflecting the fast-paced nature of the tech industry. Theory
2024.02.29
Yuya-san
Yuya-san

Hello, I'm Yuya-san!

I'm studying marketing and consumer behavior!

Do you have questions or concerns like these?

  • What is Product life-cycle theory?
  • What is a concrete example of Product life-cycle theory?

If you’re grappling with such questions and uncertainties, this time I will clearly explain:

  • Overview
  • A concrete example based on my experience

Please refer to this article to deepen your understanding of Product life-cycle theory.

  1. What is Product life-cycle theory?
    1. Stage 1: Introduction
    2. Stage 2: Growth
    3. Stage 3: Maturity
    4. Stage 4: Saturation
    5. Stage 5: Decline
    6. Impact on International Trade
  2. What is a concrete example of Product life-cycle theory?
    1. Role of Smartphones in Daily Life
    2. Introduction Phase of Smartphones
    3. Growth Phase of Smartphones
    4. Maturity Phase of Smartphones
    5. Saturation Phase and Future of Smartphones

What is Product life-cycle theory?

The created image is a vibrant and dynamic illustration of the product life cycle stages for a smartphone. It visually represents the five stages: Introduction, Growth, Maturity, Saturation, and Decline. Each stage is depicted with distinct visual elements such as a launching smartphone, a rapidly increasing sales chart, a stable market with multiple brands, market saturation with many smartphones, and outdated models in decline. The background is modern and colorful, reflecting the fast-paced nature of the tech industry.

The Product Life Cycle Theory, developed by Raymond Vernon, explains international trade patterns based on the life cycle stages of products, from introduction to decline.

Stage 1: Introduction

New products are introduced to the market.

At this stage, consumers are unaware of the product, necessitating promotion to stimulate sales.

Profits are low but increasing.

Stage 2: Growth

Demand for the product increases rapidly, leading to higher sales and profits.

Production costs decrease, and competitors enter the market.

Stage 3: Maturity

The product is widely known, with many consumers owning it.

Sales growth slows, and competition intensifies, leading to price reductions and lower profit margins.

Stage 4: Saturation

Sales volume stabilizes.

Modifying product attributes becomes necessary to attract new customers.

Stage 5: Decline

Demand decreases, leading to reduced sales.

The product may be discontinued or sold to another company.

Production often shifts to developing countries.

Impact on International Trade

As products move from growth to maturity, production shifts from the country of origin to other nations.

Eventually, the original country may become an importer of the product, demonstrating dynamic comparative advantage.

What is a concrete example of Product life-cycle theory?

The image shows a young graduate student named Yuya-san using a smartphone in various daily scenarios. He is depicted reading academic papers, checking data analysis results, scheduling classes, and communicating on social media. The background includes settings such as a university, a coffee shop, and a library, illustrating his daily life and routine. The overall atmosphere is modern and dynamic, reflecting his efficient use of technology in different aspects of his academic and personal life.

Role of Smartphones in Daily Life

I rely heavily on my smartphone in my daily life, especially as a graduate student.

It is an indispensable tool for my studies and research.

For instance, I use it to read marketing papers and materials, and check data analysis results.

This allows me to access information anytime and anywhere, significantly improving my efficiency.

Introduction Phase of Smartphones

I got my first smartphone in high school.

At that time, it was a new technology with many innovative features.

I was excited about accessing various information through apps and connecting with friends via social media.

Growth Phase of Smartphones

During my university years, smartphone performance improved dramatically.

The camera quality enhanced, making it enjoyable to take photos for my studies and hobbies.

Additionally, new apps emerged, which I used to enhance my learning and daily life quality.

Maturity Phase of Smartphones

Currently, smartphones are central to my life.

I use it for scheduling classes, managing research progress, and communicating on social media.

The market offers many competitive models, providing ample choices.

Saturation Phase and Future of Smartphones

The smartphone market is saturated, but I am interested in new technologies and features.

For example, I am always curious about new apps and services utilizing AI technology.

In the future, I expect smartphones to evolve further and make our lives even more convenient.

This article uses material from the Wikipedia article “Product life-cycle theory” which is released under the Creative Commons Attribution-Share-Alike License 4.0. Additionally, the texts and images were generated using ChatGPT.