The concept of the product lifecycle is a tool to measure the marketing world. Products are like human beings. They are born, they grow, they reach maturity and then they enter their old age, enter the declining stage and they die. Hence, by adapting and using the product lifecycle, marketers can acquire the knowledge and understanding they need of how to make a product work on the market. Let’s begin by discussing each of these phases.
1. Introduction phase :
Generally getting into the market with a new product is packed with uncertain risk. Since a man has to be developed from scratch. How long it takes for a customer to pick up or adopt depends on the complexity units of the product. In any given case, the length of this process can vary, such as awareness of the value of the product, switch-cost from the existing solution, competitive competition, etc. This phase includes prototyping and user testing of the product. Your goal is to build product recognition and grab as much market share as possible before rivals arrive.
2. Growth phase :
Sales grow rapidly in this phase. Early adopters are repeating their purchases and influencing the rest of the potential clients. Many companies have noticed the potential advantages of the expanding market and they launch competitor products. But why have they waited to launch in the first place? Because the first entrant took almost all of the risk of failure.
3. Maturity phase :
None of the product stabilizes in this phase. Almost all of your target consumers have consistently tried or used the product. And growth comes only from substitution or entry of new customers into our target customer group. Your goal is to try to retain your high segment or product market share so that you succeed while retaining high margins. That phrase might last for a long time. Yet a time will come when demand starts to diminish and thus, you will find ourselves in the next phase.
4. Declining phase :
There are many reasons for our product to enter the declining stage. It can be changed in technology. For example Ola in the taxi industry. In this phase, your objective as a marketeer is to re-benefit.
The product lifecycle method is a strategic guide that will help you to anticipate the market place of your goods and rivals and to prepare accordingly to take advantage of the opportunities and escape the risks. The main question that we may ask ourselves is what to do to break away from the life cycle of a product.