Engineering for Design
Product Life Cycle
2006 Greg Heitkamp
This material is based upon work supported by the National Science
Foundation under Grant No. 0402616.) Any opinions, findings and
conclusions or recommendations expressed in this material are those
of the author(s) and do not necessarily reflect the view of the National
Science Foundation (NSF).
4 Stages of a Product Life Cycle
Product life cycles are based on the
biological life cycle an example:
• Introduction
Seed is planted
• Growth
It sprouts
• Maturity
Plant puts down roots and grow
leaves
• Decline
After period as an adult plant it
dies
Graphic Representation of a Product Life Cycle
• http://www.marketingteacher.com
/Lessons/lesson_plc.htm
Introduction
Companies seek to develop product awareness
and a market for the product through:
• Product Branding and Quality Level –
intellectual property protection, patents, and
trademarks
• Pricing – is very competitive to establish a
market product
• Distribution – Selective until a demand or want
is established for product
• Promotion – aimed ant innovators and early
adopters. Marketing is aimed to educate
consumers and build product awareness.
http://www.quickmba.com/marketing/product/l
ifecycle/
Growth Stage
In the Growth Stage Companies try to
build brand preference and build market
share for their product.
• Product quality is maintained
• Pricing is maintained as the demand
increases with little competition. Profits
rise
• Distribution channels are added to
increase product delivery to market.
• Promotion is directed at a wider buying
market.
http://www.quickmba.com/marketing/pr
oduct/lifecycle/
Maturity Stage
In the maturity stage sales growth for the
product begins to slow. Competitive products
begin to appear. Primary objective is to defend
market share.
• Product features are added to keep the
product different from the competition
• Pricing is lower because of new competition.
Demand starts to ease toward end of this
stage.
• Distribution is intense and has incentives are
offered to maintain market share.
• Promotion stresses difference from other
products
http://www.quickmba.com/marketing/product/
lifecycle/
Decline Stage
A the sales of the product continue to
decline the company has three options
• Maintain the product by adding features
to attempt to revive sales.
• Harvest the product –reduce the cost
and try to maintain product for a niche
market of loyal customers.
• Discontinue the product, liquidating
remaining inventory, or sell to another
company that may maintain or continue
the product.
http://www.quickmba.com/marketing/
product/lifecycle/
Examples of Different Stages of the Product life
Cycle
Introduction
Growth
Maturity
Decline
Third generation
Mobile Phones
Portable DVD
Players
Personal
Computers
Typewriters
E-Conferencing
E-Mail
Faxes
Hand Written
Letters
All-in-one
Racing Skin
Suits
Breathable
Synthetic
Fabrics
Cotton T Shirts
Shell Suits
Iris-Based
Personal
Identity Cards
Smart Cards
Credit Cards
Check Books
http://www.tutor2u.net/business/marketing/products_lifecycle.asp
Standards Addressed
• Standard 1: Students will develop
an understanding of the
characteristics and scope of
technology
L: Inventions and innovations are the
results of specific goal-directed
research.
Most developments of technologies
these days is driven by the profit
motive and the market.
Standards Addressed Continued
• Standard 4: Students will develop
an understanding of the cultural,
social, economic, and political
effects of technology.
I: Making decisions about the use of
technology involves the weighing the
trade-offs between positive and
negative effects.
J: Ethical considerations are important
in the development , selection and use
of technologies.
Standards Addressed Continued
• Standard 6: Students will develop an
understanding of the role of society in
the development and use of technology.
 I: The decision to develop a
technology is influenced by societal
opinions and demands, in addition to
corporate cultures.
J: a number of different factors such
as advertising, the strength of the
economy, the goals of the company,
and the latest fads contribute to the
shaping of the design of and demand
for various technologies.
Standards Addressed Continued
• Standard 13: Students will develop
the abilities to assess the impact of
products and systems.
J: Collect information and evaluate
data.
K: Synthesize data, analyze trends,
and draw conclusions regarding the
effect of technology on the individual,
society and the environment.