Different Stages Of The Product Life Cycle – Product managers create the marketing mix for a product as it moves through its life cycle. A product lifecycle is the pattern of sales and profits over time for a product (Ivory Dish Detergent) or a product category (Liquid Detergent). As products move through each stage of their lifecycle, companies must continually review their marketing mix to remain competitive and meet the needs of their target customers.

Coca-Cola adds new drinks to its product portfolio every year. Some of these new beverages are close to the original Coca-Cola Classic, but others, such as vitamin water, represent entirely new categories of soft drinks. What challenges do new products such as vitamin water face during the introduction phase of the product lifecycle? (Credit: kobakou/ Flickr/ Attribution 2.0 Generic (CC BY 2.0))

Different Stages Of The Product Life Cycle

Product lifecycle can be used for planning. Marketers who understand the concept of cycles can better predict future sales and plan new marketing strategies. (Figure) provides a simple summary of strategic needs at different stages of the product lifecycle. Marketers must ensure that the product has moved from one stage to the next before changing their marketing strategy. A temporary decline in sales should not be interpreted as a sign that the product is dying. Withdrawal of marketing support can become a self-fulfilling prophecy leading to the premature demise of a healthy product.

What’s The Product Life Cycle?. Today A Lot Of People Know About The…

Once a product reaches the market, it enters the product life cycle. This cycle typically has four stages: introduction, growth, maturity, and decline (and sometimes death). Profit margins are typically small during the introduction period, peak at the end of the growth period, and then decline.

Price indicates value, helps position a product in the market, and provides a means of obtaining a fair return on investment. If the price is too high, the product will not sell and the company will incur a loss. If the price is too low, the company may incur a loss even if the product sells well. Prices are set according to price targets.

The pattern of sales and profits for a product or product category over time. The introduction phase in the product lifecycle aims to increase product awareness. Click here to learn more about the implementation stages and how they work.

Learn how to leverage consumer insights to improve your market position and discover valuable information about your customers.

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Have you ever looked at your parents’ old VHS tapes or your siblings’ CD collection and wondered why you even have them when you can do everything with just one click? This is an example of a cycle.

Every time a product is introduced to the market, it goes through a life cycle, from a young, working product to an old, retired product. Most products eventually become obsolete, and no one wants their product to become obsolete. It’s important to understand what stage your product is at in order to develop better marketing and strategies.

This article explains the product lifecycle, including its stages, how it works, and examples. We’ll also look at how it differs from the BCG matrix.

The product life cycle (PLC) is the process by which a product is developed, brought to market, and finally removed. Generally, a product life cycle has five stages: development, introduction, growth, maturity, and decline.

Reading: Stages Of The Product Life Cycle

The concept of product life cycle was introduced by German economist Theodore Levitt in 1965. He worked at his famous Harvard Business School and published his model of the product life cycle in his Harvard Business review article (1). He pointed out that although the product lifecycle is a widely known concept, it is rarely used tactically. In his article “Leveraging the Product Lifecycle” he states:

“Today, the concept of the product life cycle is at the Copernican cosmological stage of 300 years ago. Many people knew about it, but few are using it in an effective or productive way. It seems like there weren’t many.”

The development stage of the product lifecycle is the beginning of a product’s journey. Before a product hits the market and generates revenue, companies spend huge amounts of money on market research and product development strategies.

Product development begins with concept refinement, product testing, and designing a launch strategy. Testing your product concept at this stage helps you learn how consumers will react to your product and get direct feedback.

What Is Product Development Lifecycle: Stages And Examples

Companies bring in investors, develop prototypes, test product effectiveness, and develop a launch strategy. The goal is to develop a prototype or product sketch to show to potential investors or customers.

The length of the development phase depends on the complexity of the product. For new products, this stage is usually longer because pioneering the product is more difficult than improving further iterations.

The product introduction stage is when the product is first introduced to the market. Although it is a critical period in the product lifecycle, the success of the product is not completely dependent on it.

During this stage, your marketing team will focus on increasing product awareness to reach your target audience. Most companies spend a lot of capital on promoting their products. When you first launch a product, the stakes and costs are both high as you try to establish yourself in the market.

Product Lifecycle Marketing 101: Marketing Strategies For Each Stage

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

The length of the introduction phase depends on a variety of factors, including customer needs, product competition, product complexity, and the novelty of the product idea. Launching a new product is generally more difficult than innovating an old one, so many new products fail during the introduction stage. However, with a good idea and proper execution, you can launch your new product with confidence.

The product growth stage begins when the product is established in the market and accepted by consumers. Sales typically increase and the business begins to generate revenue. Demand and profits for products 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 implementation stage. However, the focus will be on establishing a brand identity and increasing the product’s market share rather than attracting customer attention. The focus is on showing customers why they should choose your brand over your competitors.

Solved Stage Of The Product Life Cycle A B C D Х Sales

The next important part of growth is expansion. This includes adding new features to products/services, improving support, opening new distribution channels, etc. Competitors also enter the market with similar or improved products, so you need to maintain quality while improving your product.

The fourth stage of the product lifecycle is maturity. That is when the product reaches its peak, the highest point of the PLC. We may not see rapid growth, but production costs will likely fall and sales will stabilize.

In the maturity stage, the market may become saturated and growth opportunities may disappear. A competitor may have captured a portion of the market and many consumers may be using your product instead of yours. The challenge now is to maintain the market position of the product in the long term and take certain measures to avoid serious setbacks.

Now that the product has matured, it may be tempting to sit back and relax, but money never sleeps, and neither should you. None of the big-name brands got to where they are by doing nothing.

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Let’s take the example of Coca-Cola. Even though they don’t rely on marketing, they don’t stay away from media. They know that brands are not forever and no matter how popular they are with consumers, they are always subject to changes in consumer behavior and market volatility.

Marketing efforts at this stage are primarily focused on highlighting the product’s personality rather than building awareness. If this continues, it may enter the decline stage of the product life cycle.

When a mature product loses customer interest and sales begin to decline, the product enters the decline phase of the product lifecycle. Not all products necessarily face a decline stage. Companies can survive by having multiple products at different points in the product lifecycle. Generally, product sales decrease in the face of increased competition, ultimately leading to product decline.

Although market declines are often inevitable, there is still much you can do about them. For example, if a marketing team notices a decline in the market, they can promote nostalgia for the product and emphasize the product’s advantages over competitors. You can discontinue your product, innovate your product, or even sell the company that owns your product.

Get The Most From Your Product Life Cycle |smartsheet

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 works.

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