Product Life Cycle: What It Is, The 5 Stages And Examples? (Perfect answer)

The stages are development, introduction, growth, maturity, and decline.

What are the examples of product life cycle?

Example of the Product Life Cycle 2018

  • Introduction – Self-driving cars. Self-driving cars are still at the testing stage, but firms hope to be able to sell to early adopters relatively soon.
  • Growth – Electric cars. For example, the Tesla Model S is in its growth phase.
  • Maturity – Ford Focus.
  • Decline – Diesel cars.

What is meant by product life cycle explain its stages with an example?

Contact Us. A product life cycle is the length of time from a product first being introduced to consumers until it is removed from the market. A product’s life cycle is usually broken down into four stages; introduction, growth, maturity, and decline.

What are the 5 stages of life cycle?

There are five steps in a life cycle— product development, market introduction, growth, maturity, and decline/stability.

What are the 5 stages of product life cycle PDF?

The product’s life cycle – period usually consists of five major steps or phases: Product development, Product introduction, Product growth, Product maturity and finally Product decline.

What are the 6 stages of the product life cycle?

What are the stages of the product life cycle?

  • Development.
  • Introduction.
  • Growth.
  • Maturity.
  • Saturation.
  • Decline.

What are the four stages of the product life cycle quizlet?

Four stages that product goes through in the market place: introduction, growth, maturity, and decline.

What is introduction stage in product life cycle?

Definition: Introduction stage is the first stage in the product life cycle. Description: The introduction stage is the first stage in the product life cycle where a company tries to build awareness about the product or service in a market where there is less or no competition.

What is product life cycle strategy?

Guide. The product life cycle contains four distinct stages: introduction, growth, maturity and decline. Each stage is associated with changes in the product’s marketing position. You can use various marketing strategies in each stage to try to prolong the life cycle of your products.

What is life cycle for Class 5?

A life cycle is a series of stages a living thing goes through during its life. All plants and animals go through life cycles. It is helpful to use diagrams to show the stages, which often include starting as a seed, egg, or live birth, then growing up and reproducing. Life cycles repeat again and again.

What is the fifth stage of product life cycle?

Product Decline In the fifth and final stage of the product life cycle (the decline phase), revenue decreases as a result of increased competition, innovation, and changes in consumer behavior.

What are the 5 stages of the business cycle give their functions?

The business life cycle is the progression of a business in phases over time and is most commonly divided into five stages: launch, growth, shake-out, maturity, and decline. The cycle is shown on a graph with the horizontal axis as time and the vertical axis as dollars or various financial metrics.

What is a Product Life Cycle? How it Affects Your Business Explained

Everything has a shelf life of some sort. Regardless matter whether it is a car or your smartphone or any other type of goods, its usage and sales potential will ultimately run out. Due to the fact that whenever a new product is introduced to the market, it follows a predefined life cycle that is followed by every product. An evolution that takes it from being launched as the next great thing to something that everyone has and finally something that everyone has completely forgotten about. This process is ongoing, which means that every company must be conscious of how it operates and how it might have an impact on the things they sell.

What is a product life cycle?

The product life cycle is the period of time that elapses between the time that a product is launched to the consumer market and the time that it is no longer in production or marketed. This cycle may be divided into many stages, which are as follows: development, introduction, growth, maturity, saturation, and decline. Development: Typically, the product’s life cycle is used to identify whether it is suitable to enhance promotion, modify price, explore new markets, redesign packaging, and even change your messaging.

What are the stages of the product life cycle?

Costs, opportunities, and dangers are associated with each step of the life cycle, and specific products differ with respect to how long they spend in each stage. Each of the following steps is included in each stage of the product life cycle, despite varying viewpoints on whether there are four, five, or six phases total.

1. Development

The product development stage is the research phase that occurs before to the introduction of a new product. Technically, this is not included in the definition of the product life cycle, but it is an important stage that should not be overlooked. It is used to verify the feasibility of a product, confirm when it should be introduced to the market, and choose the best way to do your formal launch. At this point, expenditures are piling up without any commensurate revenue. Some goods take years of development and a significant amount of cash expenditure before they can be tested for efficacy.

The cash earned by current goods is frequently used to finance research and development by existing enterprises.

Those involved in the development of new products may find it beneficial to arrive at the minimum viable product (MVP) as soon as feasible.

You just require enough information to demonstrate to potential investors and customers how your product will function. The sooner you can demonstrate the market potential of your product, the more probable it is that you will receive investment and launch.

2. Introduction

The introduction stage is the period during which your product is first introduced to the market. It is the point at which you move beyond the product itself in order to generate a market for the product and raise consumer awareness of the product. This is where you’ll strive to define a target market, do a market study to gain an understanding of the competitive environment, and, ideally, close your first few sales. Because it is vital to reach out to potential clients at this level, marketing expenditures are considerable at this point.

Despite the fact that your advertising budget is substantial, you may carefully use it to uncover marketing channels that result in greater conversion rates.

Product pricing may be expensive in order to recuperate expenditures connected with the development stage, depending on your market position in the industry.

The ability to secure early capital and plan your financial runway are critical to the success of your product at this stage.

3. Growth

When you are in the growth stage, your product has been well received by customers, and you are now attempting to expand your market share. That indicates that both demand and revenue are increasing, preferably at a constant rate over time. The length of time it takes to achieve consistent growth is entirely dependent on your product, the present market situation, and the rate at which buyers embrace your product. If you introduce a new product into an already saturated market, you can expect your competitors to react immediately and aggressively.

Your answer during this phase will be to fine-tune your messaging, establish a stronger brand presence, and extend into other distribution channels, if this is the case.

There are a variety of alternatives to choose including support services, add-ons, and insurance packages, to name a few.

4. Maturity and saturation

When the market has reached maturity, sales will begin to level down. This does not rule out the possibility of continued growth; nevertheless, you will not see the same level of quick development as in the past. At this point, you will most likely begin to cut pricing, give free extras, or make other alterations in order to maintain your items competitive in the marketplace. You’ve also improved your productivity at the same time. Because production costs are decreasing, it is now possible to prevent making expensive mistakes throughout the manufacturing process.

  • As a result, even if your volume may not be increasing, you are most likely at your most profitable stage at this point.
  • This indicates that they have seized a chunk of the market, which has resulted in the flattening of the growth of your own product even more.
  • This is the time to make any modifications to your product or the services that go along with it in order to progress them.
  • When only incremental modifications can be made, you may nevertheless promote the product as a refresh that includes new features or advantages that complement the existing ones.

This is the newest example, since it is the Nintendo Switch OLEDedition, in which the only change is the addition of a new, somewhat larger, and clearer screen.

5. Decline

The decline stage of a product’s life cycle is characterized by declining revenue as a result of market saturation, intense competition, and shifting consumer wants and preferences. At this point, companies have a number of alternatives, including:

  • It is common for revenue to fall during the decline stage of the product life cycle because of market saturation, intense rivalry, and shifting consumer requirements. A number of choices are available to companies at this time.

It is at this point that you will need to carefully consider the costs and advantages connected with each option you are considering. Are you truly capable of making changes to the product? Are there any additional aspects that you haven’t taken use of yet? If so, is there a market that you haven’t considered yet that might benefit from your product? In order to assess what each option can entail in terms of product performance, try to run as many alternative forecasting scenarios as you can throughout this period.

The ideal situation is to have numerous products or iterations operating at various stages of the product lifecycle.

How do you know what stage your products are in?

It is at this point that you will need to carefully consider the costs and advantages connected with each option you have considered. Können Sie the product in its current form successfully revise it? What additional advantages have you taken use of that you should have? What markets have you overlooked that may be a potential customer base for your product? In order to assess what each option can entail in terms of product performance, try to run as many alternative forecasting scenarios as you can during this period.

The ideal situation is to have numerous products or iterations operating at different stages of the product lifecycle.

How to use the product life cycle to manage your business

Knowing what stage your product is at might help you design a plan for it more successfully and efficiently. As we discussed above, the stage has just as big of an impact on your decisions as it does on your company’s financial performance. Here’s how you can use your knowledge of the product life cycle to better manage and develop your company. Product life cycle diagram

Establish authority

If you want to portray your product as being cheaper, better, or offering any number of other advantages over the competition, you should do so at the introduction stage. This is the stage at which you not only develop the brand for the product, but also the brand for your company. Do you want to be regarded as a low-cost option to your competitors? Is it better to choose an environmentally friendly or a local solution? Alternatively, you could like to concentrate on your company’s objective and the way in which it runs.

Set a pricing strategy

For example, you may try to portray your product as being less expensive, superior to the competitors in terms of quality or any number of other advantages over them. When you develop the brand for a product, you are also establishing the brand for your company. Do you want to be regarded as a low-cost alternative to your competitors’ offerings?

Is it better to go green or go local? It’s also possible that you wish to concentrate on your company’s objective and how it runs. However, this is the stage during which you establish your unique selling proposition.

Create a marketing strategy

The effectiveness of a product’s marketing can have a direct impact on its performance. Fortunately, each step allows you to test and fine-tune your overall marketing plan. It is at the introduction stage that you are investigating various channels, testing a variety of advertising techniques, and trying to connect with your target demographic. Growth occurs when you’ve optimized your channel choices, discovered winning copy, and streamlined your budget to achieve maximum results. The stages of maturity and decline provide another chance to experiment with new channels and refine your approach.

What’s more, each step provides more possibilities to explore and try fresh concepts that will aid in the development of your marketing strategy overall.

Example: If you’re in the growth stage and you see that your product is reaching maturity or even declining in value, you may start looking at ways to increase the value of your product.

What factors affect the product life cycle?

The decisions you make about how to design, position, and advertise your product are all components within your control throughout the product life cycle. However, it’s important to remember that there are external elements that can have a direct impact on how well your product works and how long it remains in a certain stage of the development process.

Ease of entry

The level of competition in the market into which you are introducing a product can have a direct impact on the product’s success or failure. As a result, it might have an impact on the number of rivals that seek to enter the market. With fewer hurdles to entry (in terms of the number of rivals, expenditures, market size, and technology), the product life cycle is more likely to be short. If they are greater, making entrance into the market more difficult, you are more likely to witness a product life cycle that is longer.

Advancements in technology

If you operate in an industry or nation where technical innovation is occurring at a quick rate (e.g., phones, computers, etc.), the life cycle of your product is likely to be quite short. On the other side, certain goods, regions, and industries only see limited improvement, which means that a single iteration may be relevant for a much longer period of time than others. Here, understanding how rapidly technology develops, understanding what changes are relevant for customers, and understanding when iteration will be required to remain competitive are critical considerations.

While certain models, which are extremely costly, are capable of achieving 8K resolution, the vast bulk of sales and support are geared on 4K resolution.

When it comes to mid-range televisions and monitors, it’s probably best to maintain your products at 4K output, with a few alternatives for 8K to see whether it’s even a viable option in the long-term.

Rate of market acceptance

The acceptance of your product by customers will also influence the lifetime of your product, to continue with the television example. At this time, 4K televisions have been available for several years, but they are just now beginning to become the standard. This is due to a combination of factors, including the low cost of previous versions and the support provided by streaming services, consoles, conventional cable, and other hardware vendors. As a result, the product life cycle has become quite protracted.

The expected replacement of 8K is also potentially years away, which means that the development and maturity stages may be considerably longer than previously anticipated.

Additionally, keep in mind that the advantages of having a longer or shorter life cycle are completely dependent on the stage.

However, if you expect it to enter a long growth period, it may be worthwhile to invest the time.

Economic forces

The current situation of the economy has the potential to have a direct influence on the length of a product’s life cycle. A abrupt drop in demand, such as that caused by a global epidemic, may cause the introduction phase to be prolonged as a result of consumers spending less or more selectively. By increasing expenditure in unprecedented quantities, the recovery from a financial crisis can also shorten the introduction and even growth phases of a business cycle. This is a fairly general example, and the specifics may vary depending on your target audience, the influence on your sector, and other variables.

Keep your product life cycle in mind

An understanding of the product life cycle is critical to successfully managing and developing your company. It may assist you in developing a more precise roadmap for your company, making better strategic decisions, and even creating more accurate financial projections. Make sure that your business plan includes an examination of your market position as part of your regular plan reviews if you have developed one. You’re almost certainly already looking into every aspect of the product life cycle, but it’s well worth your while to take the time to consolidate your product’s position on a frequent basis.

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It has been modified to reflect the year 2021.

Soto oversees the Small Business Development Center, which she founded. It was in July 2007 that she relocated to Oregon from Wyoming Small Business Development Center Network, where she had worked for over 13 years as the Regional 4 office manager in Cheyenne.

Product Life Cycle Stages – Managing the Product Life Cycle

When it comes to operating and expanding a business, understanding the product life cycle is critical. Using it may assist you in creating a more precise roadmap for your company, making better strategic decisions, and even creating more accurate financial projections. Make sure that your business plan includes an examination of your market position as part of your regular plan reviews if you have already written one. Despite the fact that you’re probably already looking into every aspect of the product life cycle, it’s still worthwhile to take the time to consolidate your product’s position on a frequent basis.

Editor’s note: This article was first published in 2014.

Arlene M.

Her previous employer, the Wyoming Small Business Development Center Network, where she worked for over 13 years as Regional Director in Cheyenne, welcomed her to the state of Oregon in July 2007.

Definition of Product Life Cycle (PLC)

It is necessary to describe what the product life cycle is before moving on to examine the phases of the product life cycle stages. The product life cycle (PLC) is the sequence of sales and profits generated by a product throughout the course of its existence.

Product Life Cycle Stages

The product life cycle is divided into five major stages:

  1. Product Development is the process of creating new products. Product development begins when a corporation discovers and develops an innovative new product concept. Product development is characterized by zero revenues and a rise in the company’s investment expenses
  2. This is known as the introduction phase. As the product is brought to the market, sales begin to gradually increase. Profits are still non-existent as a result of the high costs of product launch outweighing the revenues generated
  3. Growth. The expansion stage is characterized by rapid market adoption as well as increased profit margins. Maturity. Sales growth slows down at the maturity stage since the product has gained acceptability among the majority of potential customers. Profits level off or decrease as a result of the necessity to boost marketing expenditures in order to protect the product against competition
  4. Decline Finally, sales begin to decline and earnings begin to decline.

Stages of the Product Life Cycle

Different Products – Different Product Life Cycle Stages

Not all goods go through the whole product life cycle, which is divided into five stages. While some items are introduced and then swiftly phase out of existence, others remain in the mature stage for an extended period of time. A significant amount of advertising or repositioning is used to cycle some products back into the growth stage once they have reached the decline stage. In reality, if prudent methods are implemented, a well-managed brand has the potential to last indefinitely. Coca-Cola, Gillette, and American Express are just a few examples of companies that have survived for more than a century.

Product class, form or brand in the Product Life Cycle Stages

Not all goods go through the whole product life cycle, which includes the five stages of development. Others, on the other hand, remain in the mature stage for a very long period after they have been brought to the market. A significant amount of advertising or repositioning is used to cycle some products back into the growth stage after they have entered the decline period. When appropriate methods are implemented, a well-managed brand has the potential to last forever. Coke, Gillette, and American Express are just a few examples of brands that have survived for more than a century in the marketplace.

Special Product Life Cycle Forms

Styles, trends, and fads may all be classified according to the stages of the Product Life Cycle. Their product life cycles are a little different from the norm. A style is a fundamental and distinguishing manner of expression. Homes (country cottage, practical art deco), apparel (formal and informal), and art are examples of how styles may be found in a variety of mediums (e.g. realist, surrealist and abstract). A fashion trend may persist for decades, although it is more common for it to come in and out of fashion.

  • A fashion is a style that is currently fashionable or recognized in a certain industry.
  • Fashions tend to grow slowly and to remain fashionable for a long period of time before gradually fading away.
  • A fad may be a part of an otherwise regular product life cycle, and it may go through all of the stages of the product life cycle.
  • The Rubik’s Cube is the most famous example of this.
  • When implemented properly, the product life cycle concept (PLC) may be a tremendous asset in establishing products marketing strategies for the various stages of the product life cycle.
  • For example, forecasting the volume of sales at each stage of the product life cycle, as well as the duration of each stage and the overall form of the product life cycle curve, might be challenging to achieve.
  • In order to build marketing strategies for a product, it is important to take use of the product’s present position in the product life cycle.
  • The PLC philosophy is based on the belief that businesses must constantly innovate in order to survive.

For a firm to be successful in the future, it must masterfully manage the product life cycles of its present items, regardless of how successful its current product line-up is. Developing a continual stream of new items that provide added value to clients is essential for a company’s growth.

What Is the Product Life Cycle? Stages and Examples

Whether you’re going through your parent’s old VHS tapes or shopping for a new smartphone, you’re taking part in and experiencing different stages of the product life cycle, often known as the product life cycle cycle, or PLC. When a product enters the market, it begins a life cycle that takes it from being new and valuable to finally being phased out of circulation in the market. This is typically unknown to the consumer at the time of introduction. This is a continuous process that occurs when products go from their development and introduction stages all the way to maturity and ultimate retirement.

But how does the product life cycle function in practice, and how can understanding it assist firms in optimizing their operations?

What Is the Product Life Cycle?

Essentially, the product life cycle describes the process that a product goes through from the time it is initially brought into the market until it is no longer viable or is removed from the market entirely. The life cycle is divided into four stages: initiation, growth, maturity, and decomposition. However, while certain items may be able to maintain a protracted maturity stage for an extended period of time, all products ultimately phase out of the market owing to a variety of causes such as saturation, greater competition, lower demand, and declining sales.

The 4 Stages of the Product Life Cycle

Once a product has been established, it is normally subjected to the four stages of the product life cycle (from launch to decline) before being phased out of the market altogether. Introduction, growth, maturity, and decline are the four stages of the product life cycle, respectively.

1. Introduction

Once a product has been created, it moves on to the launch stage of the PLC, which lasts for many months. This is the stage in which the product is introduced to the market for the first time. It is common for the introduction of a product to be a high-stakes point in the product’s life cycle, yet it does not always determine whether or not the product will be successful later on. During the introduction stage, marketing and promotion are at their peak, and the firm frequently expends a significant amount of time and resources on pushing the product and getting it into the hands of potential customers and clients.

Reportfamous launch presentations, which emphasize the new features of their recently (or soon-to-be launched) products, this is possibly best demonstrated.

However, it is frequently a period of high expenditure for the corporation, with no assurance that the product will generate sufficient revenue to cover its costs.

The primary objectives of the introduction stage are to generate demand for the product and get it into the hands of customers, with the hope of eventually capitalizing on the product’s increasing popularity.

2. Growth

Consumers begin to respond positively to the product and begin purchasing it during the growth stage. As the product grows more popular and sales increase, the product concept has been validated. As the product continues to get more attention and generate more income, other firms become aware of the product and its position in the market as a result. If there is intense rivalry for a particular product, the corporation may nevertheless choose to invest substantially in advertising and promotion of the product in order to defeat the competition.

During the growth stage, products are frequently adjusted in order to improve their functions and features.

Sales, on the other hand, typically expand in volume while continuing to earn money.

3. Maturity

When a product achieves maturity, its sales tend to decline, indicating that the market has been substantially saturated. It is possible that sales will begin to decline at this time. Pricing at this stage tends to become competitive, resulting in profit margins shrinking when prices begin to decline as a result of the weight of external factors such as increasing competition and decreasing demand, among other things. At this time, marketing efforts are focused on fending off competition, and businesses frequently produce new or revised products in order to reach other market niches.

This stage is referred to as the “shake-out point.” At this point, the market has achieved saturation and the sales volume has reached its maximum.

Depending on the product, the mature stage might endure for a lengthy period of time or for a short period of time.

4. Decline

Despite the fact that most organizations want to keep their products alive in the mature stage for as long as possible, the inevitable decline of practically every product is unavoidable at some point. Because there is less demand for the product during the decline stage, product sales drop dramatically and customer behavior shifts as a result of this. Because of increasing competition, the company’s product is losing market share at an alarming rate. Sales have also begun to decline. Marketing in the decline stage is frequently sparse or focused at clients who are already loyal, and prices are dropped to reflect this.

For example, items such as typewriters, telegrams, and muskets are in the midst of a long and painful fall (and in fact are almost or completely retired from the market).

Examples of the Product Life Cycle

When it comes to products, the life cycle usually takes them from the time of their debut until they are eventually phased out. But how does this cycle appear in the actual world? Here are four illustrations.

Typewriter

The typewriter is a typical illustration of the extent of a product life cycle in terms of its functionality. When typewriters were originally introduced in the late nineteenth century, they quickly gained appeal as a technology that made writing more convenient and efficient. However, once new electronic technologies like as computers, laptops, and even smartphones were launched, they swiftly displaced typewriters, resulting in a decline in typewriter demand and income as a result of the decline.

Typing is now almost solely done on desktop computers, laptop computers, tablets, and cellphones in the modern world.

VCR

The VCRs (videocassette recorders, for any Gen-Z readers) that many of us grew up with are no longer in use, and you would be hard-pressed to find one in anyone’s home these days. With the development of streaming services such as Netflix(NFLX) -Get Netflix, Inc. Report- and other similar services, Along with Amazon(AMZN) – Get Amazon.com, Inc. Report(as well as the brief intermission period of DVD players), VCRs have been effectively phased out and are in the final stages of their life cycle.

Electric Vehicles

At this point in the product life cycle, electric cars are still in the growth stage. Firms such as Tesla(TSLA) – Get Tesla Inc Reporthave been profiting on rising demand for years, yet recent setbacks may herald a shift in the company’s business strategy. Despite this, while the electric car is not necessarily a new concept, the improvements that businesses such as Tesla have used in recent years to respond to new developments in the electric vehicle industry indicate that the product is still in its early stages of development.

AI Products

While AI (artificial intelligence) has been in development (and use) for many years, the industry is always pushing the boundaries and generating new products that are currently in the introduction stage of the PLC (product lifecycle management). Even items that are already on the market, such as AI-infused sex robots or driverless automobiles, are still in the early stages of development. Those that have been introduced to the market are still in the testing and adoption stages, since they are still being evaluated and accepted by the general public.

What Is PLC Analysis?

Performing product life cycle analysis (PLC analysis) is the act of consciously inspecting a product and making strategic decisions about its design, price, and marketing in order to optimize the product for each stage of its life cycle. Companies may use PLC analysis to establish whether or not their goods are effectively serving the markets that they target, and they can get a better understanding of when they may need to move their attention to a different market. Companies may make better decisions on how to pivot and improve their product in order to ensure its long-term viability in the marketplace by assessing their product in relation to the market as a whole, their rivals, sales, and expenditures.

Popular PLC Pricing Strategies

There are a variety of pricing structures accessible to organizations with items in the launch phase that want to start earning sales right now.

Price Skimming

Price skimming is a marketing approach that includes putting the price of a product high at first, then dropping it in order to “skim” other categories of consumers as the market grows in size and sophistication. When a product is first introduced, it is expensive, and demand for it comes only from early adopters, or those who are ready to pay a higher price for the most up-to-date technology. Once the demand from that group of customers has been met, the price is reduced in order to attract demand from a new, more price-sensitive group of consumers, and so on.

Price Penetration

Price penetration is a marketing technique that entails establishing a low beginning price for a product in order to infiltrate the market as soon and efficiently as feasible. This method contributes to increasing customer awareness, which in turn boosts demand. As the demand for the goods develops, the price of the product is raised in response.

How Can Businesses Use the Product Life Cycle to Their Advantage?

Companies frequently find themselves in problems when they fail to comprehend the introduction stage of their product’s life cycle, particularly when customers do not respond favorably to the initial product offering (either because of pricing or the inherent value or usefulness of the product). In addition to product pricing, it is critical to look at product promotion and packaging as well. The product is meeting or exceeding the expectations and requirements of its target market. A company’s marketing strategy may be altered if sales are stagnant, and the company may choose to target new demographics to help promote their product to a different sector of the consumer market.

Consider how Netflix, an online streaming business, pivoted their offering by moving away from their DVD-delivery service and toward streaming movies and television programs straight online, which was received with tremendous success.

Product Life Cycle Stages and Examples

Understanding product life cycle management may assist your company in narrowing its marketing emphasis while increasing its efficiency at the same time. Consider the stages of the product life cycle and how you may utilize them to make better management decisions in this article.

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What is the product life cycle theory?

In accordance with the product life cycle hypothesis, all goods go through four stages of market advancement in their natural course: Some marketing experts consider development to be the first step of the fifth stage of the product life cycle, although the majority of marketing professionals are concerned with goods that make it through these early trials and reach the market. According on the type of goods offered, the time required at each step will vary.

Over example, new electronic equipment cycle through these stages much more quickly than a kitchen appliance that is intended to endure for several years. Understanding the stages of the product life cycle may assist you in maximizing profits at every level and determining when it is time to let go.

The four product life cycle stages

These product life cycle stages examine what happens to a product after it has been approved for sale in the market. In reality, many products never make it out of the development phase at all.

1. Introduction

The product has completed development and is now ready to be introduced to the market. Businesses must build branding and attract customers’ attention during this early stage of the product life cycle. The market may be suspicious of the product’s applications or overall quality. To solve this, a robust product-market strategy must be developed that highlights strengths while also fostering user trust. You might draw attention to your new product by offering special deals or discounts to urge buyers to test it out for themselves.

Prepare to budget for more marketing expenditures at this level than you would at any other stage, and to consider reaching out to investors for assistance if necessary.

2. Growth

Your product enters the growth stage of the product life cycle once it has been launched to the market. This research examines methods for increasing sales numbers and distribution networks. Is there a more effective technique to bring your product in front of its intended audience? Consider whether you might provide more services in exchange for more business. While the initial stages of your business are focused on marketing to a small group of people, at this time you should be reaching out to a larger audience in order to increase your market share.

3. Maturity

By this time, the product has gained widespread acceptance, and both manufacturing and marketing expenses have been decreased, resulting in increased profit. There is a risk that your target audience will already be on the lookout for the next hot new thing, so you must keep their interest by giving discounts, introducing additional functionality, or offering incentives to encourage customer loyalty. The focus of marketing efforts at this point of the product’s lifecycle should be on how your established, mature product outperforms new items introduced by rivals.

4. Decline

At long last, the product starts its inevitable phase of deterioration. Whether the technology has grown outmoded or the product has just fallen out of favor, you must find a method to breathe new life into the product and bring it back to market. This might involve developing new applications or features, or reducing output in order to stimulate demand when the resource gets scarcer. A lot of the time, it makes the greatest financial sense to sell manufacturing rights or to completely cease a product.

Product life cycle examples

There are several companies that were once at the top of the high street but have subsequently fallen out of favor.

They may have reached the end of their natural product life cycle, but there are many items that might have been made to live longer with better management. Here are a few instances of the product life cycle:

  • Throughout the product life cycle, the home entertainment business is replete with examples of how to do things better. Videocassettes, for example, are no longer available on the market. Netflix is in the declining stage, while flat-screen smart TVs are in the mature stage
  • Nintendo is an excellent example of a corporation that effectively controls its product life cycle. Nintendo games that were first launched in the 1980s are still available for purchase because they are constantly updated to reflect the most recent technological advances. Because of changing consumer preferences over the last decade, Nintendo switched to a subscription-based model for the Switch console. Nintendo demonstrates that, by implementing sound product lifecycle management practices, companies are able to hold onto their products in their mature stage of the cycle for as long as possible. As a result, well-known items such as Starbucks coffee and Apple iPhones serve as excellent examples of effective product life cycle management. The product is updated on a regular basis to keep it seeming new to customers, allowing it to outperform the competition and delay the transition to the decline stage of the product’s life cycle.

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What is a Product Life Cycle? (Definition, Stages and Examples)

A product life cycle is the period of time that elapses between the time a product is initially offered to consumers and the time it is removed from the market. The life cycle of a product is often divided into four stages: introduction, growth, maturity, and decline. Introduction: A product is introduced into the market. In order to decide advertising schedules, pricing points, product market growth, package redesigns, and other factors, management and marketing experts use product life cycle diagrams and diagrams of product life cycle diagrams.

They can also assist in determining whether newer items are ready to displace older products from the market.

Contents

To jump along to the relevant section of the guide, click on the links below:

  • What it is
  • How it works
  • Stages
  • Product life cycle strategy and management
  • Examples
  • And conclusions.

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How Does it Work?

Product life cycles include four stages, as previously mentioned: introduction, growth, maturity, and decline. But before reaching these stages, a product must first go through the stages of design, research, and development (R&D). A product may be manufactured, advertised, and launched into the market after its feasibility and potential profitability have been established. In this moment, the product life cycle officially begins. The many stages of a product’s life cycle impact the manner in which it is sold to customers in different markets.

Marketing activities diminish when the new product gains traction, and the expenses of marketing and manufacturing are reduced as a result of the decrease in costs.

At this point, the product may be removed from the market, maybe to be replaced by a more innovative alternative.

In 1965, marketing professor Theodore Levitt stated in the Harvard Business Review that the inventor stood to lose the most since many new goods fail at the introduction stage of the product life cycle.

In order to prevent actual innovation, many corporations prefer to wait for someone else to produce a successful product before copying it and selling it to their own customers.

Stages

The life cycle of a product is divided into four stages, which are as follows:

1. Market Introduction and Development

This stage of the product life cycle entails building a market strategy, which is often accomplished by an investment in advertising and marketing to make customers aware of the product and its advantages. Sales tend to be slow at this time since demand is still being established. This stage can take a long time to complete, depending on the complexity of the product, how fresh and original it is, how well it meets the demands of the target market, and whether or not there is any competition in the marketplace.

Therefore, many businesses choose to follow in the footsteps of an inventive pioneer, refining an established product and launching their own version of it.

2. Market Growth

If a product successfully navigates through the market introduction stage of its life cycle, it is ready to go on to the growth stage. As a result, rising demand should spur an increase in production, which should result in the product becoming more readily available. As the product begins to gain traction in the market, the gradual rise of the market introduction and development stage gives way to a sudden upturn. Competition may join the market at this stage with their own versions of your product – either outright duplicates or with some upgrades compared to yours.

Product pricing and availability in the marketplace become increasingly crucial considerations in order to maintain sales momentum in the face of increased competition.

3. Market Maturity

Due to the fact that a product has become well-established in the industry, the cost of manufacturing and selling the current product will decrease. Product life cycles reach this stage of maturity, and the beginnings of market saturation may be seen in the product’s life cycle. Many customers will have purchased the product by this point, and rivals will have established themselves, making branding, pricing, and product distinction even more critical in order to sustain market share in the long run.

4. Market Decline

Eventually, as competition continues to develop, with other firms attempting to mimic your success by adding more product features or lowering pricing, the life cycle will begin to shorten and eventually terminate. Decline can also be triggered by new developments that outperform your present product, such as horse-drawn carriages falling out of favor when the vehicle took over the transportation industry. Many businesses will begin to diversify their operations as a result of market saturation, which indicates that there is no longer any profit to be made.

Consumers may also shift away from a product in favor of a new option, but this may be reversed in certain cases when trends and fashions come back into play to rekindle interest in a formerly popular product or service.

Product Life Cycle Strategy and Management

Having a product life cycle strategy that is correctly managed might assist you in extending the life of your product in the marketplace. Starting with the establishment of pricing, strategy is implemented from the very beginning of the market launch stage. Pricing strategies such as ‘price skimming,’ in which the starting price is set high and then gradually reduced in order to’skim’ customer groups as the market expands, are available. Alternatively, you may choose price penetration, in which case you set the price low in order to reach as much of the market as feasible as early as possible before raising the price after the market is established.

To further increase income, it is necessary to sell your product to new demographics in order to expand your customer base.

Netflix is an example of this, having transitioned from a DVD rental distribution business to a subscription streaming approach.

Examples

As customer demands shift and new innovations are developed, many items and brands have seen a drop in their popularity. Some industries operate in multiple stages of the product life cycle at the same time, such as the televisual entertainment industry, where flat screen televisions are in the mature stage, on-demand programming is in the growth stage, DVDs are on the decline, and video cassettes are now largely obsolete, among other things. As is true with the Apple iPhone, many of the world’s most popular goods are kept in their mature stage for as long as possible, with minor changes and redesigns, as well as fresh marketing, to ensure that they remain in the minds of customers, as is the case with the Samsung Galaxy S5.

1. Typewriters

Following its debut in the late nineteenth century, the typewriter quickly gained widespread acceptance due to the way it made writing easier and more efficient. The typewriter began to decrease with the introduction of the electronic word processor, followed by the introduction of computers, laptops, and smartphones, all of which occurred in rapid succession as the industry grew and matured. However, while typewriters are still accessible, the product is nearing the conclusion of its decline phase, with few sales and minimal demand.

2. Video Cassette Recorders (VCRs)

Following its introduction as a rather costly product, video cassette recorders (VCRs) underwent rapid product expansion as costs fell, resulting in market maturity when they could be found in a large number of households.

VCRs, on the other hand, have been essentially obsolete since the invention of DVDs and, more recently, streaming services. VCRs, once hailed as revolutionary products, are now in the throes of a downward spiral from which it is improbable that they will ever emerge.

3. Electric Vehicles

Companies are attempting to push electric vehicles into the marketplace while making continuous design upgrades, which is causing them to enter a growth stage in their product life cycle. Despite the fact that electric cars have been around for a while, the constant innovation in the industry and the increasing sales potential indicate that they are still in the early stages of development and have not yet reached maturity.

4. AI Products

Artificial intelligence (AI) has been in development and use for years, and many products are still in the market introduction stage of the product life cycle, similar to electric vehicles. However, due to the ongoing developments in AI, there are many products that are still in the market introduction stage of the product life cycle. These include inventions that are still in the development stage, such as driverless cars, which have not yet been embraced by the general public in large numbers.

Conclusion

When firms understand how a product’s life cycle works, they can determine whether or not their goods are meeting the demands of the target market and, as a result, when they may need to shift their emphasis or produce something entirely new. Considering a product in connection to market demands, competition, prices, and profitability enables an organization to shift their product emphasis in order to retain longevity in the marketplace, according to a recent study. Knowing when a product’s market share is dwindling allows you to avoid having your firm suffer as a result of being unduly reliant on a dwindling market share.

While all goods have a life cycle, many of the most successful ones are able to sustain the mature stage of the life cycle for a long period of time before seeing any significant decrease.

The 6 Stages of the Product Life Cycle

A little perplexed, I used to rummage through my elder cousin’s record collection when I was 12 years old. I didn’t see the point in having CDs when I could just go to iTunes and listen to all of my favorite music there instead. CDs, in my opinion, were outmoded, and iTunes represented the wave of the future. Product life cycle (PLC) scenarios such as these are excellent demonstrations of how the PLC works in practice. The last thing anyone wants is for their product to become “outdated” and to reach the end of its product life cycle.

You may mature and expand in the marketplace by responding quickly to changing client demands, adding new products and services to your lineup, and using new technology that keeps you current with the latest trends in the industry.

The product life cycle will be covered in detail below, but if you’re in a hurry, the links provided below will get you to the information you need quickly and efficiently:

  • What is the product life cycle
  • What is the product life cycle? When do products go through each step of the product life cycle
  • Product Life Cycle Examples
  • International Product Life Cycle
  • Product Life Cycle Diagrams When Should the Product Life Cycle Be Used?
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What is the product life cycle?

Products move through a series of stages during the course of their lifespan, beginning with development and eventually terminating in decline. It’s usually divided into six stages, which are as follows: Products have a life cycle, and business owners and marketers utilize this cycle to make crucial decisions and tactics about advertising expenditures, product pricing, and product packaging. In fact, if you’re already familiar with the word, you might find this illustration a little strange. In the marketing sector, the conventional portrayal of the product life cycle consists of only four major stages: introduction, growth, maturation, and decline (or decline).

We as marketers must understand how our tactics and strategies alter based on the stage of a product’s development that we are working with.

You can also use this template to map out the phases of the life cycle of your own product.

What are the stages of the product life cycle?

  1. Development, introduction, growth, maturation, saturation, and decline are all stages of the process.

1. Development

The product development stage of the product life cycle is the research phase that occurs before a product is launched to the market. This is the time of year when firms bring in investors, produce prototypes, evaluate product efficacy, and organize their product launch strategy. The nature of this stage necessitates that organizations spend a significant amount of money without generating any income because the product has not yet been sold. Based on the intricacy of the product, how fresh it is, and how fiercely competitive it is, this stage might persist for a lengthy period of time.

Development Stage Marketing Strategy

However, even though marketing traditionally begins with the release of a product, you might begin to generate “buzz” about your product by getting the endorsement of well-known figures in the sector. Also, early (and favorable) customer research or testimonials might be published on your website. During this stage, your marketing objective is to increase brand recognition while also establishing oneself as a forward-thinking organization.

2. Introduction

It is at the introduction stage when a product is initially introduced into the marketplace. This is the time of year when marketing teams seek to raise awareness of their products and reach out to potential buyers. When a new product is released, sales are often modest, and demand grows steadily over time. Most of the time, this phase is devoted to advertising and promotional initiatives. Product testing and education are ongoing efforts on the part of companies to educate potential customers about their products.

Introduction Stage Marketing Strategy

This is the point at which the excitement begins. Now that the product has been published, you can begin to promote it via the use of inbound marketing and content marketing strategies.

The importance of education cannot be overstated at this point. Your target customer must be aware of what they are purchasing before they make a purchase. The product moves on to the next stage, which is growth, if your marketing techniques are deemed successful.

3. Growth

In the growth stage, consumers have accepted the product on the market and are beginning to invest in it on a more permanent basis. That indicates that demand and earnings are increasing, preferably at a steady and consistent rate. The growth stage occurs when the product’s market is increasing and competitive pressures are beginning to arise. Potential competitors will take notice of your achievement and will want in on the action.

Growth Stage Marketing Strategy

During this phase, marketing campaigns frequently change from gaining customers’ support to building a brand presence so that consumers pick them over emerging competitors in the marketplace. Additionally, when businesses expand, they will continue to develop new distribution channels as well as add additional features and support services to their offerings. These will also be promoted as part of your overall plan.

4. Maturity

The maturity stage is the point at which sales begin to level out following a period of strong expansion. It is at this stage that businesses begin to lower their pricing so that they can remain competitive in the face of increased competition. This is the stage in which a firm begins to become more efficient and learns from the mistakes that were made during the introduction and growth stages of the business. Marketing initiatives are often geared toward differentiating themselves rather than creating awareness.

When a product reaches maturity, it begins to enter the most profitable stage of its life cycle.

Maturity Stage Marketing Strategy

It is possible to feel like you are “sailing by” when your product has matured to the point where sales are consistent and the product has become well-established. However, it is at this point that you must establish yourself as a thought leader and differentiate your brand. As product usage rises, make continuous improvements to the product and communicate to customers through your marketing approach that the product they love is now even better than it was before. During the following step, which is called saturation, you will be protected.

5. Saturation

The product saturation stage occurs when rivals have begun to grab a share of the market, and products will neither increase nor drop in sales during this period. The moment at when the majority of consumers are utilizing a product, but there are several competing firms, is known as the saturation point. This stage is critical since you don’t want your product to become the preferred brand choice, else you will enter the decline stage.

Saturation Stage Marketing Strategy

When a market has been saturated, you’ll need to concentrate on distinction in terms of features, brand awareness, pricing, and customer service, among other things. At this point, the level of competition is at its peak, making it vital to leave no mistake about the quality of your goods.

If product innovation is not possible (since the product simply requires minor modifications at this stage), then focus your efforts on improving customer service and incorporating client testimonials into your marketing campaigns.

6. Decline

You’ll need to concentrate on distinction in terms of features, brand awareness, pricing, and customer service when the market has grown crowded. It is vital to leave no mistake about the excellence of your product at this time, since the competition is fiercest. If product innovation is not possible (since the product simply requires minor modifications at this stage), then focus your efforts on improving customer service and incorporating client testimonials into your marketing efforts instead.

Decline Stage Marketing Strategy

While most businesses would want to avoid the decline stage, there are occasions when it is unavoidable — especially if the whole market has seen a downturn, rather than simply your product. Using your marketing plan to effectively break out of this stage, you might appeal to people’s nostalgic feelings or underline the superiority of your solution. Successful organizations may also apply new advertising methods, lower pricing, add new features to boost their value proposition, explore new markets, and make changes to the packaging of their products in order to lengthen the product life cycle.

Some businesses are looking to other nations to restart the cycle of growth.

Product Life Cycle Examples

Examine the product life cycle of some well-known items that have subsequently reached the end of their useful life cycle.

1. The Typewriter

The typewriter was the world’s first mechanical writing tool, and it proved to be a fitting replacement to the humble pen and paper. Other technologies, on the other hand, gained traction and eventually supplanted it.

  • Preparation: Before the first commercial typewriter was offered to the market, the overall concept had been developed for centuries, commencing in 1575, before it was finally implemented. A brief historical overview: The first commercial typewriters were launched in the late 1800s. Rapid development: The typewriter soon established itself as a necessary instrument for all types of writing, and it was extensively employed in office settings, enterprises, and private residences. Typewriters have been in the mature period for about 80 years, owing to the fact that they were the chosen product for typing messages until the 1980s. The saturation stage occurs when a market becomes saturated. For example, in the 1990s, typewriters began to face intense competition from computers. As a result of this failure, the typewriter was gradually phased out in favor of newer, more advanced technology

2. Vine

With a fast forward to the twenty-first century, we see the emergence and collapse of Vine, a brief form of video-sharing software that was at its peak the source of many memes but finally faded away owing to the rise of other platforms.

  • Vine was launched in June 2012 and competed mostly with Instagram at the time of its launch. Introduction: The app was first made available to the general public in 2013. Its distinguishing feature was its short-form video style, which required viewers to record anything that was either humorous, ludicrous, or a combination of the two in under seven seconds. Vine has had explosive growth in the two years since its launch, with more than 200 million active users. Because of its widespread acceptance, the expression “Do it for the Vine” was coined. Vine was never able to attain maturity because it was only on the market for a few years before it went out of business. Despite the high rate of adoption, it was still a relatively new app
  • Saturation: Vine competed in a market that was already oversaturated. Instagram, Snapchat, and YouTube were the most well-known brands in the category, and Vine’s popularity began to wane shortly after its launch. With the introduction of Musical.ly, Vine saw a significant reduction in its user base and eventually shut down. In 2016, Vine was replaced by Byte, which is a short-form video sharing platform that is comparable to Vine
  • However, none of these have been able to equal Tik Tok, which arrived a few months after Vine was discontinued.

3. Cable TV

Remember the days when you had to flip through the stations on your television to find anything to watch? It’s true — and they have a distinct sensation of being from another time. While cable television is still in existence, it is reasonable to state that it is on the verge of being obsolete.

  • During the first part of the twentieth century, the technology of cable television was created. According to popular belief, it was invented by John Walson. First and foremost, the first commercial television system was created in 1950, and by 1962, the technology had begun to show signs of development. Growth: After a decades-long halt in the development of cable television (due to legislative constraints), the technology began to gain steam, and by 1980, more than 15 million households had access to cable television services. Maturity: Cable television reached its zenith around the 1990s. Approximately seven out of ten households had cable
  • A saturation of this technology occurred at the beginning of the twenty-first century, and it also began to compete with other modern innovations such as on-demand services and high-definition television (HDTV). While the internet was still in its infancy, it will eventually overtake cable television in terms of popularity
  • The fall of cable television began in 2015, and it has continued to this day. Netflix and Hulu, among other online video streaming services, have risen to prominence, and this is expected to continue in the future.

4. Floppy Disk

This relic was once a popular and easy method of storing and sharing data across computers, but it is now considered obsolete. While growing up, I had no idea what they were talking about, and the very presence of cloud data sharing and other vast memory storage methods continues to astonish me to this day.

  • IBM employees invented the floppy disk in 1970, and it was the first to be used commercially. It was an 8-inch flexible magnetic disk in a square casing with a storage capacity of 2MB
  • It was made of flexible magnetic material. Introduction: It was first launched in 1971 and quickly gained widespread recognition as the only method of transferring or storing data. Increased use of the floppy disk throughout the 1980s to the 1990s
  • Growth Maturity: During the 1990s, the market had a good response. With time, it will be able to carry up to 200MB of data storage. Saturation: At the beginning of the twenty-first century, a number of major competitors developed. People now have additional alternatives for storing their data thanks to the introduction of USB connections, external hard drives, CDs, and other media. The floppy disk had a significant decrease up until Hewlett-Packard decided to discontinue manufacture of the disk in 2009. Storage capacity for other items on the market has become more efficient as a result of this development.

Not all items are required to go through the decline stage. Companies may stay afloat and extend the product life cycle with fresh iterations as long as they have a diverse range of products at various stages of the product life cycle in their portfolio.

International Product Life Cycle

The international product life cycle (IPL) refers to the cycle that a product goes through when it is sold in foreign countries. As products reach maturity and firms seek to avoid entering the decline stage, they will often begin to look for new markets throughout the world to expand into. When a product reaches mass production, the manufacturing and production facilities are relocated to other nations. There are no differences between the stages of an international product life cycle and those of a conventional product life cycle.

Keep in mind that after you’ve laid the groundwork in a new market, your rivals will almost certainly follow, and the life cycle phases will continue until saturation and finally decline.

It is possible for you to either grow into another market or learn from past mistakes and innovate before the decline stage occurs. Following that, we’ll look at when it’s appropriate to utilize the product life cycle.

When to Use the Product Life Cycle

Consider the marketing of a brand-new product in comparison to the marketing of a well-established, established product. The marketing efforts for the former will be focused on generating awareness, whilst the advertisements for the latter will be focused on preserving awareness. Product life cycle management is also used by businesses to accomplish the following goals:

  • Establish yourself as a competitive expert. Especially if your product is fresh to the market and has only recently been released, you may position it as a new and improved alternative to an existing product. If the product is well-established, you may exploit its lengthy history of usage in your branding to your advantage. Make a decision on your pricing approach. You will choose how much to charge for your product based on the stage of its life cycle it is currently in. A new product may be priced cheaper in order to attract more consumers, but a product in the growth stage may be priced higher in order to attract more buyers.
  • Make a marketing plan for your company. The strategy you choose will be determined by the stage of your product’s life cycle. The maturity of your site and the knowledgeability of your audience have a significant impact on the sort of information you publish on your social media platforms. Respond as soon as possible before the goods begins to deteriorate. There is no worse feeling than seeing your product progressively become outdated or be supplanted by a competitive product over a long period of time. It is possible to develop a plan that will keep you ahead of the curve as you approach the saturation and decline stages of the life cycle provided you keep the various stages in mind.

Businesses profit from the product life cycle because it allows them to adjust their messaging and positioning to effectively promote the product at the stage at which it is currently at. In the event that your product has only lately been released and you attempt to sell it as a long-established solution, consumers will be able to see straight through it and will therefore trust you less.

Keep Your Product’s Life Cycle in Mind

The product life cycle stages may be used as a guide for marketing efforts, whether you’re producing a brand new product or working with a mature, well-established business. Each step will define how you communicate with your target audience about the product, how you position your brand in the marketplace, and how you decide to proceed once the decline stage is complete. By keeping the life cycle of your product in mind, you can invest in smarter marketing strategies that yield a larger return on your investment.

Originally published at 2:00 p.m.

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