Definition Of Product Life Cycle In Marketing – A product development life cycle (PDLC) or product development cycle is a way of describing all the stages a product goes through. This cycle is often divided into four or five stages: (new product development), introduction, growth, maturity, and decline.
If you’re planning to launch a new product, whether it’s a new wearable device or a new IoT solution, it’s good to be aware of the new product development cycle because you can plan when you’re in the PDLC. For example, different stages require different efforts from management, marketing and financing perspectives, and knowing your product development cycle will help you create your business guidelines.
- 1 Definition Of Product Life Cycle In Marketing
- 2 What Stages Make Up The Product Development Life Cycle (and Why They Matter!)
- 3 Customer Lifecycle Management: Definition, Strategy, + 5 Stages
- 4 Customer Lifecycle: Definition, 6 Stages & Advantages |
- 5 Stages Life Cycle Value Chain
Definition Of Product Life Cycle In Marketing
When you have an idea for a new product, you start the new product development process. During this process, your idea becomes a mass-produced product that you can market. At the same time, your business plan is developed and you move to the next stage of the new product development cycle.
What Is Customer Lifecycle Marketing? Smart Insights
When your product is ready to market, the introduction phase begins. At this stage, you build your brand and start promoting your product. You’re also building your customer base, hopefully with the help of some early adopters who are already fans of your product.
During the introduction phase of the product development cycle, you must also determine the price of your product and determine how you will sell and distribute the product as you prepare for the growth phase.
If you are successful in the introduction phase of your new product development cycle, your product will start attracting users and you will enter the growth phase. At this point, you can expect to start making profits.
During the growth phase of the product development cycle, demand for your product increases and you must work hard to keep up with demand and expectations to gain loyal customers.
Product Lifecycle Definition
By the end of the growth phase, you’ll start to have a few competitors who have seen your success and hope to replicate it.
The maturity stage of the new product development cycle is the stabilization stage. In the maturity stage, the sales of your product reach its peak and most of your customers buy the product at this stage.
Your competitors are now reaching the growth stage with their product and the market has more options. The challenge in the maturity stage of the new product development cycle is to maintain your position in the market and come up with new ways to satisfy customers. If you don’t keep inventing new things, your product development cycle will be reduced to the last stage.
When the maturity phase ends, the inevitable decline phase comes. You will start to experience a steady decline in sales and your customers may lose interest in your product or switch to a newer and better product made by a competitor.
Exploit The Product Life Cycle
To combat the product deterioration phase of the development cycle, innovation is key: making improvements to your current product or perhaps making a second generation is a good way to combat deterioration and keep pace with competitors.
If your product has had its life cycle in the market and is no longer serving its purpose, product discontinuation can be a good option.
Of course, the product development life cycle is only an outline of a common new product development cycle, not a guaranteed prediction of what will happen. A product may remain in any of the stages and never enter the decline stage.
The best learning from the product development life cycle is to know that at no stage can you rest on your laurels. If you stop innovating in the maturity stage and decide to bask in your success, you will soon find yourself in the decline stage with newer and better products killing your customers. Learn all about new product development from our topic library.
Stages Of Business Life Cycle & How To Prepare For Each
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What Stages Make Up The Product Development Life Cycle (and Why They Matter!)
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Customer Lifecycle Management: Definition, Strategy, + 5 Stages
The product life cycle describes the stages of a product from the time it is introduced to the end of production. It is a strategy tool that helps companies plan new product development and modify existing products.
With so many marketing models to choose from, it can be difficult to know which one is best to use in a particular situation. This free guide was created to help today’s marketers use our most popular established frameworks to aid decision making.
The new product development phase occurs before the start of the product life cycle, which includes market research that leads to the product launch. Therefore, this step can include the following:
The four stages are shown in the table below, although reductions can be avoided by reinventing product elements. It has also been found that some products never go beyond the introduction stage while others move through the life cycle much faster than others.
Customer Lifecycle: Definition, 6 Stages & Advantages |
Our marketing model resources are designed to help marketers, managers and business owners design, manage and optimize their marketing activities to improve performance and achieve their goals.
Product marketing managers should introduce their new product while it is relatively unknown and production is low. Prices are often higher because distribution is limited and advertising is personalized.
At this point, it’s worth going back to the infamous statistic that 95% of new products fail. So planning is key. We recommend planning your new product launch using the RACE planning framework.
Our marketing solutions for business members help define communication types, best practices and optimization techniques within the RACE planning framework that maximize the lifetime value of your customers and products.
How To Use The Product Life Cycle (plc) Marketing Model
Congratulations – your product is growing in popularity! As your market share increases, now is the time to focus your RACE goals on market penetration and development – such as communicating product benefits and building your brand.
As your product is purchased in larger quantities and as volume increases, the price will decrease and profit will increase. When scaling any business, keep in mind the practical implications for resources as summarized by Lilach Bullock in his blog post 4 Essential Elements of a Scalable Business:
Scale too quickly and you may suffer from being unprepared. Scale slowly or unevenly and you may be stuck with employees you hired and no longer need. In general, you need to make sure that your growth rate doesn’t hurt you in the long run.
This product competes with alternatives and its price decreases. Distribution becomes intensive (it is available everywhere) and advertising focuses on the differences between competitors’ products.
The Software Development Life Cycle (sdlc): 7 Phases And 5 Models
When managing a differentiation strategy, DRIP is another marketing model featured in our essential marketing models guide. DRIP stands for Differentiate, Reinforce, Inform and Persuade.
As this product reaches the end of its life, it faces fewer competitors. Price may increase and distribution is selective as some distributors have dropped the product. The purpose of advertising is to remind customers of its existence.
You can read more about each stage of the product lifecycle in our free guide to essential marketing models. 1000’s of Smart Insights members use our free resources to improve their marketing strategy skills and knowledge. Get started today.
In our free, illustrated guide to 15 classic planning model diagrams, we explain what
Stages Life Cycle Value Chain
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