Professional Documents
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Journal of Marketing
60 / Journal of Marketing, Fall 1981 Vol. 45 (Fall 1981), 60-67.
What Is A Product-Market for the nylon, which is subsequently processed
Purpose of Life Cycle Analysis? further to be suitable for different applica-
tions such as carpeting, tire cord, and ho-
A problem that confronts all strategy analysis is siery? (Levitt 1965) The answer is certainly
the variety of levels of aggregation that characterize no, for each application requires an entirely
hierarchical product structures, ranging from the different strategy. Indeed, it would be more
generic product class and industry, to the product meaningful to construct a hfe cycle for syn-
type or form, and down to variants and brands. thetic carpet fibers, for example.
The extreme positions on the question of appropriate
level of aggregation for life cycle analysis are: look • Technological substitution processes. Until
at all levels, on the grounds that they each yield the mid-sixties, beverage cans were almost
different insights, or forget the whole concept exclusively three-piece steel/tin combina-
tions, until two-piece aluminum cans began
because generic product classes serve such enduring to replace them. Then in the mid-seventies
needs that meaningful trends are not usually two-piece steel cans were developed to re-
apparent, while product forms are so volatile that capture the position of steel (Machnic 1980).
it is difficult to judge with accuracy in which stage But during this period, neither the functions
of the life cycle the form is or when it will proceed nor the customers of metal cans were
to the next stage (Dhalla and Yuspeh 1976). In- changed. Thus a new product hfe cycle was
termediate positions include those who argue that not necessary.
since managers cannot control product forms or
classes, the analysis must be confined to the brand • Sequentially unfolding segments. Some life
level (Enis, LaGarce, and Prell 1977). cycles are a composite of the sequential
The relevant question is which level best cap- introduction and development of a basic
tures the consequences of the underlying forces function/ technology within a series of related
for change. However, there are many dimensions customer segments. Cardozo(1979) describes
along which a product can change. When is a change how a specialized communications system
sufficiently distinct to justify a separate hfe cycle was first accepted for process control ap-
analysis? One useful answer is proposed by Abell plications and then extended to security ap-
(1980), who defines a product as the apphcation plications within the same adopting firms.
of a distinct technology to the provision of a After two years a new segment for combined
particular function for a specific customer group. security and process applications was identi-
Only when there is a change along one or more fied.
of these dimensions that involves a sharp departure
from the present strategies of the participating As each of these examples demonstrates, prod-
competitors is a separate hfe cycle necessary. The uct life cycles summarize the effects of many
advantage of this heuristic can be seen from its concurrent changes. While these influences must
application to problem situations that in the past be understood, they may not dictate an entirely
have fueled enduring doubts about the life cycle: new product life cycle.
• The timeless consumer product. Was the What Are The Underlying Factors
chairman of Procter and Gamble justified in
saying they don't believe in the product life That Determine The Parameters of the
cycle by citing the case of Tide synthetic Life Cycle?
laundry detergent which was introduced in Numerous forces have been hypothesized to in-
1947 and was still growing in 1976? During fluence the sequence and duration of the stages,
the 29-year lifetime, it had undergone 55 the shape of the curve, and the magnitude of sales
significant modifications in response to at each transition to a new stage. Past attempts
changes in consumer preferences, laundry to validate the existence of the hfe cycle have
habits, washing machines, and fabrics (Hop- uncovered many shapes, durations, and sequences
kins 1977). Clearly they have successfully (Buzzell 1966, Cox 1967, PolU and Cook 1969, Rink
adapted this product to extended maturity and Swan 1979). These efforts have not been
without significantly changing either func- matched by systematic research into the reasons
tion, technology, or customer. for the difference between shapes. Yet, this knowl-
• The multiple function material. Is there a edge is critical to informed forecasting and strategy
meaningful hfe cycle for a material such as development. The hmited evidence, however, sug-
REFERENCES
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Cox, William Jr. (1967), "Product Life Cycles as Marketing 351.
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Dhalla, Nariman and Sonya Yuspeh (1976), "Forget the Substitution: The Case of the Beverage Can Market,"
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Dolan, Robert J. and Abel P. Jeuland (1981), "Experience Mahajan, Vijay and Eitan Müller (1979). "Innovation Diffu-
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