Understanding each product life cycle stage is necessary for better marketing efficiency, and it determines the business scale. Product managers must know and understand product management to make better decisions for the company. This article focuses on different stages of the product life cycle and examples. Follow the article further for better in-depth information about the same.
What is the product life cycle?
Product development is just not about designing and developing the product. Knowing what design thinking is, is indeed necessary, but there are other aspects you need to know. The product life cycle tells about the four stages of product development, which are necessary to follow for putting efficient and effective products on the market. These four stages are Introduction – Development – Maturity – Decline.
While most marketing experts focus on items that reach the market after passing these early trials, some experts consider development the first stage of the product life cycle. It depends on what kind of goods are sold and how much time will be spent at each stage. For instance, compared to a kitchen appliance that is supposed to last for a lifetime, new technological equipment goes through these stages much faster. Understanding how the product life cycle stages work to maximise profits at every level and determine when it’s time to let go is crucial.
Four stages of product life cycle theory
As a product reaches the stage of ready for sale, it goes through these stages. The development stage of many goods never even makes it to the market. This is why it is necessary to understand what each step means and depicts.
Stage 1: Introduction of the product
Once the product is all developed and ready to go to the market – the first step is the introduction. The product is complete and ready for market introduction. Businesses must build branding and attract attention early in the product life cycle.
The market may question a product’s quality or usefulness. An excellent product-market strategy is required to showcase strengths and establish user trust. A special offer or discount might entice them to try the new product. It’s also essential to figure out how to market your product at this point. Be prepared to budget for more significant marketing expenditures at this stage than others, and consider approaching investors for assistance.
Stage 2: Growth
After your product is presented, it reaches the growing phase of its life cycle. This examines methods for increasing sales statistics and distribution networks. Is there a better approach to bringing your product in front of its intended audience? Are there any other services you might provide to increase sales?
This stage involves marketing to a larger audience to increase your market share; in the initial phase, you focus on marketing to a small group of people. Lenders or investors may still grant funding even though the product is starting to gain sales income.
Stage 3: Maturity
The product is highly recognized at this time, and manufacturing and marketing expenses are cut to increase profit. The risk is that your audience will look for the next new and shiny item.
To keep their interest, introduce fresh features, and use incentives to build loyalty, you need to provide incentives, introduce fresh features, and implement incentives to keep their interest. Your marketing efforts at this level should focus on how you outperform your competitors’ new products.
Stage 4: Decline
Ultimately, the product starts its natural decline stage. Yet if the innovation has grown outmoded or has just fallen out of favour, you must discover strategies to revitalise the product.
This might involve discovering new applications or features or reducing output to raise demand as it gets scarcer. In many circumstances, selling production rights or discontinuing the product makes the most meaningful financial sense.
Real-Life Product Life Cycle Examples and Instances
A corporation like Nintendo effectively controls its product life cycle. Despite being outdated with current technology, Nintendo games from the 1980s are still available. Nintendo adopted a subscription model with the Switch platform to meet consumer trends.
Nintendo shows how companies can extend the life of their products through effective product life cycle management. Starbucks coffee and Apple iPhones are both examples of well-known products with good product life cycle management. The product is regularly updated to keep consumers interested, defeating the competition and delaying the transition to the decline stage of life.
Product life cycle theory is required to make a functional product space in the market and make it competitive. You can opt for various product management certification courses, which can help with the product life cycle and other product development dimensions. With these courses, you can contribute much more to product development and its success.