The Product Life Cycle
The product life cycle is a fundamental conceptual model that illustrates how a product goes through different stages of development and eventual decline. It allows a company to plan its marketing strategy and identify potential problems. Keep reading to get the steps of the product life cycle.
Steps of The Product Life Cycle
1. Introduction- In this stage, the product is introduced to the market. The company might advertise it heavily to build brand awareness and create a demand for it. The product sales start to rise, and this is the stage where they will keep an eye on their costs.
2. Growth- This is where industry experts expect sales to rise above their competitors. This will be achieved by establishing a more significant demand for it as more people become aware of it, leading to a higher price. This is where they will try to keep costs low to remain competitive in the market.
3. Maturity- According to Raphael Avraham Sternberg, the maturity stage is where the sales will start to slow down. The growth rate will be low if any, and the price will reach a higher point. The company may try to boost sales by advertising it more aggressively or reducing costs as they try to maintain its market share and attempt to develop new products that appeal to its customers.
4. Decline- This is where the sales begin to go down dramatically. If the company does not take action, this process can continue until there are no new customers and the product is removed from the market, even though some people still want it. The company will review the market, its competitors, and what they do to remain competitive. They may try to revitalize the brand, retire it or ditch it altogether.
5. Revival- If the company takes any action, it may see a slight increase in sales. There needs to be more to completely revive the product and bring it back to its previous level of popularity. Instead, it is more likely that they will be able to get enough momentum to make a profit again and return to stage 4.
6. Resurgence- This is where the sales have risen again and continue to increase quickly. The company has succeeded in its attempts at revitalizing the brand and continuing its efforts to drive these sales further until the product reaches its peak again or goes through another cycle.
Raphael Avraham Sternberg thinks that the first two stages are where most of the investment is made, and the return will be determined by how consumers react. If they do not buy products, then that company may lose money in their economy and be forced to cut costs. Every company must think carefully when making such investments to create profit for themselves and their customers to continue growing their business. The product life cycle is essential to product development in many industries. It has helped companies plan marketing strategies while also controlling costs throughout the development process of new products.