Example 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 usually divided into four or five stages: (new product development), introduction, growth, maturity, and decline.
If you are planning to launch a new product to the market, be it a new wearable device or a new IoT solution, it is good to be aware of the new product development cycle, because when you are in the PDLC, you can plan your business around it. Different stages require different types of efforts from management, marketing and funding perspectives, for example, and knowing your product development cycle will help you create your business roadmap.
- 1 Example Of Product Life Cycle In Marketing
- 1.1 Product Life Cycle Management: Insights With Apple’s Example
- 1.2 Pdf] The Impact Of Product Life Cycle On Supply Chain Strategy
- 1.3 Product Life Cycle
- 1.4 The 6 Stages Of The Product Life Cycle [+examples]
Example Of Product Life Cycle In Marketing
When you have an idea for a new product, you begin the new product development process. In this process, your idea becomes a mass production-ready product that you can take to market. At the same time, your business plan develops and you move to the next stage of the new product development cycle.
Strategies For New Product Launch Addressing Product Life Cycle Stages
When your product is ready to market, the introduction phase begins. At this stage, you build your brand and start promoting your product. You will build your customer base with the help of some early adopters who are already fans of your product.
During the introduction phase of the product development cycle, you need to determine the price of your product and establish how you are going to market and distribute the product as you prepare for the growth phase.
If you succeed in the introduction phase of your new product development cycle, your product will start gaining users and you will enter the growth phase. At this point, you can start making some profit.
During the growth phase of the product development cycle, demand for your product increases and you have to work hard to keep up with demand and expectations to gain loyal customers.
Product Life Cycle Management: Insights With Apple’s Example
Towards the end of the growth phase, you start to have some competitors who have seen your success and are hoping to copy it.
The final phase of the new product development cycle is the stabilization phase. At the closing stage, the sales of your product reach a peak and most of your customers are buying the product at this stage.
Your competitors are now reaching a growth stage with their product and the market has more options. The challenge is to hold your market position in the closing phase of the new product development cycle and come up with new ways to delight your customers. If you don’t keep inventing new things, your product development cycle will spiral into the last, decline phase.
When the maturity phase ends, the inevitable decline phase comes. You will start to notice a steady decline in sales and perhaps your customers will lose interest in your product or switch to a new, better product made by a competitor.
Understanding The Industry Life Cycle: Phases And Examples
In the development cycle, to fight the decline phase of a product, innovating is key: coming up with improvements to your existing product, or perhaps making a second generation, is the best way to fight decline and keep up with the competition.
If your product has reached its life cycle in the market and is no longer serving its purpose, the best option is to discontinue the product.
Of course, the product development life cycle is an outline of a typical new product development cycle, not a guaranteed prediction of what will happen. A product can linger in any number of stages and never go, for example, into a degradation stage.
One of the best learnings to take away from the product development life cycle is to know that you can’t rest on your laurels at any point. If you stop innovating at the maturity stage and decide to enjoy your success, you will soon find yourself in the decline stage with new and better products that alienate your customers. Learn all about new product development from our content library.
Pdf] The Impact Of Product Life Cycle On Supply Chain Strategy
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Stages Of Business Life Cycle & How To Prepare For Each
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Functionality cookies help perform certain functions such as sharing website content on social media platforms, collecting feedback and other third-party features. A product’s life cycle refers to the length of time since the product was introduced to the consumer. market until it is removed from the shelves. This concept is used by management and marketing professionals as a factor in determining when it is appropriate to increase advertising, lower prices, expand into new markets, or redesign packaging. The process of devising ways to continuously support and maintain a product is called product life cycle management.
Crossing The Chasm In Technology Adoption Life Cycle Explained
Like people, products have life cycles. Product life cycle is divided into four stages – introduction, growth, maturity and decline.
A product starts with an idea and, within the confines of modern business, it doesn’t go any further until it undergoes research and development (R&D) and is found to be viable and potentially profitable. During that time, the product is produced, sold and rolled out. Some product life cycle models include product development as a stage, although at this stage the product has not yet been brought to the customer.
As mentioned above, there are four generally accepted stages in the product life cycle. Here are the details about each.
The introduction stage introduces a new product to first-time customers. A company must typically invest heavily in advertising and a marketing campaign focused on making consumers aware of the product and its benefits, especially if what the product does is not widely known.
Product Life Cycle
During the introduction phase, the product usually has little-to-no competition, as competitors get their first glimpse of the new offering. However, companies still experience negative financial results at this stage because sales are lower, promotional prices may be lower to increase customer engagement, and the sales strategy is still being evaluated.
If the product is successful, it moves to the growth phase. It is characterized by increasing demand, increase in production and expansion of its availability. The time spent in the introduction phase before a company’s product experiences strong growth varies between industries and products.
During the growth phase, the product becomes more popular and recognized. A company may still choose to invest heavily in advertising if the product faces heavy competition. However, marketing campaigns are geared towards differentiating a product from others as opposed to introducing a product to the market. A company can refine its product by improving functionality based on customer feedback.
Financially, the growth period of the product life cycle leads to increased sales and higher revenues. As competition begins to offer competing products, competition increases, forcing the company to lower prices and experience lower margins.
The 6 Stages Of The Product Life Cycle [+examples]
The maturity stage of the product life cycle is the most profitable stage, a time when production and marketing costs fall. As the market becomes saturated with the product, competition is now greater than at other stages, and profit margins begin to shrink, some analysts refer to the stage of maturity as when sales volume has “peaked out”.
Depending on the good, the company can begin to decide how to innovate its product or introduce new ways to capture a larger market presence. This involves getting more feedback from customers and researching their demographics and their needs.
At the maturity stage, competition is at its highest. Competing companies have
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