Different Stages Of Product Life Cycle In Marketing – We pull back the curtain on what you need to know about market research sample size, from the terms you’ll encounter, what factors will affect your budget expectations, and why sometimes you just have to embrace the gray area and move on.

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Different Stages Of Product Life Cycle In Marketing

Have you ever looked at your parents’ old VHS tapes or your brother’s CD collection and wondered why they have it when everything is just a click away? Each such example is an example of the product life cycle.

How To Manage The Maturity Stage Of Product Life Cycle

Every time a product enters the market, it has a life cycle that carries it from young and useful to old and retired. Most products eventually become obsolete but no one wants that for their products. Understanding what stage your product is in is important for good marketing and strategizing.

In this article, we will discuss the stages of product life cycle, how it works and its examples. We will also see how it differs from the BCG matrix.

The product life cycle (PLC) is the process by which a product is manufactured, goes to market and is finally disposed of. Generally, the product life cycle consists of five phases — development, introduction, growth, maturity and decline.

The concept of product life cycle was introduced in 1965 by a German economist – Theodor Levitt. He worked at the famous Harvard Business School and published his product life cycle model in an article in the Harvard Business Review (1). He noted that while the product life cycle was a widely known concept, it was rarely used strategically. In his article – Exploiting the Product Lifecycle, he says:

What Is A Product Life Cycle? (definition And Examples)

“The concept of the product life cycle today is on par with the Copernican view of the universe 300 years ago: many people knew about it, but hardly anyone seemed to use it in an effective or productive way.”

The stage of product life cycle development where the product journey begins. Even before the product hits the market and generates revenue, companies spend a lot of money on market research and a product development strategy.

Product development begins with concept refinement, product testing and designing a launch strategy. Product concept testing at this stage can help you learn consumer reactions to the product and get first-hand feedback.

Companies bring in investors, build prototypes, test product performance and develop launch strategies. The goal is to create a prototype or a product sketch to show potential investors and customers.

The Life Cycle Of A Product

The length of the development phase can vary depending on the complexity of the product. For a new product, this phase is usually longer because pioneering a product is more difficult than further iterative improvement.

The introduction phase of a product is when it is first launched in a market. This is an important time in the product life cycle but the success of your product does not entirely depend on it.

At this stage, the marketing team focuses on creating awareness about the product to reach the target audience. Most companies spend huge amounts of capital on product promotion. When you first launch a product, both the stakes and costs are high as you try to carve out your niche in the market.

An example of pre-launch product promotion is Apple’s famous launch presentation, which has remained an essential part of its brand for over 20 years. Keynotes announce and highlight new features of their newly-released (or soon-to-be-released) products After the initial launch, you can use inbound and content marketing to further promote the product.

What Is A Product Life Cycle? (definition, Stages And Examples)

The length of the introduction phase depends on various factors such as customer demand, product competition, product complexity and novelty of the product concept. Launching a new product is usually more difficult than innovating an old product, which is why many new products fail in the early stages. However, with a great idea and proper execution, you can launch a new product with confidence.

A product’s growth phase begins when the product makes its place in the market and is accepted by consumers. Sales usually increase and the business starts generating revenue. Product demand and profits are increasing at a steady pace and more and more competitors are entering the market.

Marketing at this stage is just as important as the introduction stage. However, it will be more focused on increasing the product’s market share than trying to establish a brand identity and attract customers’ attention. The focus is on showing customers why they should choose your brand over your competitors.

The next important part of growth is expansion. This includes adding new features to your product/service, improving support and opening new distribution channels. Since competitors will enter the market with a similar or improved product, you need to maintain quality while refining the product.

How To Pick Product Life Cycle Management Software

The fourth stage of the product life cycle is maturity. This is when the product is at its peak – the highest point during the PLC. Although you may not be growing rapidly, production costs will likely decrease and sales will stabilize.

At the maturity stage, market saturation may occur and you will run out of growth opportunities. Competitors may have a share of the market and many customers are using their products instead of yours. The challenge now is to maintain the product market position over time and take specific measures to avoid any significant shocks.

Now that the product has matured, you may be tempted to sit back and relax, but money never sleeps and neither should you. None of the famous brands sit back and get where they are.

Take the example of Coca-Cola. Although they don’t rely on marketing, they don’t leave the media. They know that brands don’t last forever and no matter how popular you are with consumers, you are always subject to consumer behavioral changes and market volatility.

Product Life Cycle: How To Extend Product Market Presence

Marketing efforts at this stage are mainly focused on highlighting product uniqueness rather than creating awareness. If you’re not persistent, you’ll likely enter the decline phase of the product life cycle.

When a mature product loses customer interest and its sales begin to decline, it enters the decline stage of the product life cycle. Not all products necessarily face a decline phase. Companies can stay afloat by having multiple products at different points in the product life cycle. Generally, product sales decline in the face of increasing competition and ultimately lead to product decline.

Although market declines are often inevitable, there’s still a lot you can do about it. For example, when you notice a decline, your marketing team can build nostalgia around the product to highlight its superiority over competitors. You can also discontinue the product, innovate the product, or sell the company that owns the product.

Coca-Cola needs no introduction. It is one of the most popular drinks in the world. Let’s take a look at Coca-Cola’s product life cycle and how it has passed through various product life cycle stages.

What Is The Product Life Cycle? Stages And Examples

The typewriter was the grandfather of the keyboard still known for the mechanical sounds its keys made. Despite being a worthy successor to pen and paper, the typewriter was eventually replaced by other technologies

Before the era of CDs and DVDs, floppy disks were used to store and share data between computers.

If you’re a ’90s kid (or older), you probably remember the days when you had to change the TV channel to watch something. While cable TV may seem old fashioned in the face of Netflix and Hulu, many still use it.

Global warming and climate change are no longer tomorrow’s problems, and electric vehicles are one way to bring about change. While EVs are generally more expensive than gasoline vehicles, they also leave a smaller carbon footprint. (3)

Stages Of The Product Life Cycle: Strategies For Success

Product life cycle and BCG matrix are similar concepts but relate to different aspects of a product’s performance. (2) BCG matrix shows below market share and market growth how a particular product affects cash consumption and generation. The product life cycle uses sales/revenues and profitability over time.

Named after the initials of the Boston Consulting Group, the BCG Matrix AKA the Growth Share Matrix has four steps — Question Mark, Star, Cash Cow and Dog.

Question marks are products that do not yet have a market but have great growth potential Stars are top products that generate substantial revenue. Cash cows are stellar futures, i.e. products that have matured and are entering a decline phase. Finally, dogs are problem products that do not sell well (or generate revenue) and are unlikely to recover.

Simply put, question marks and stars are products that have growth potential and demand marketing investment. Cash cows are close to being obsolete and you don’t invest money in them. Even with substantial investment the dog will not recover.

Product Life Cycle Stages Explained With Examples

Marketers conduct market research using the product life cycle to customize their marketing efforts at each stage. Managers use the product life cycle

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