Life cycle refers to the birth and death of an object. The concept of life cycle is widely used, especially in politics, economy, environment, technology, society and many other fields. Its basic meaning can be commonly understood as the whole process from cradle to grave.
For a product, it is the whole process from nature to nature, that is, it includes not only the production processes such as the collection and processing of raw materials needed to manufacture the product, but also the circulation processes such as the storage and transportation of the product, as well as the process of using the product and the process of returning the waste product to nature, which constitutes a complete product life cycle.
Theoretical significance
(1) product life cycle theory reveals that any product, like a biological organism, has a process from birth to growth to maturity and then to recession, and constantly innovates and develops new products.
(2) With the help of the product life cycle theory, we can analyze and judge which stage of the product life cycle, speculate on the future development trend of the product, correctly grasp the market life of the product, and adopt corresponding marketing mix strategies according to the characteristics of different stages to enhance the competitiveness of enterprises and improve their economic benefits.
(3) The product life cycle can be extended.
(4) The product life cycle is of practical significance to explain the dynamic changes of manufactured goods and has an important reference role to explain international trade. It guides people to understand and master the dynamic changes of export through the life cycle of products, and provides theoretical basis for correctly formulating product strategy and market strategy of foreign trade.