What is Product Life Cycle and Why Does it Affect Your Business?

Product Plan

If you are in the corporate sector, then you must have often come across the use of the term product life cycle. It is one of the most important things to affect your business. For those are unaware of what it means, we are here to help you solve all your problems and answer all our queries. In the simplest of terms, t refers to the journey of a product from the time it is introduced in the market to the time is has been sold and used enough and the masses now desire for something different. Keep reading ahead to know the stages of a product life cycle.

  1. Introduction: First, there is introduction. You all know that introduction means to put forth something new. This is when you present the new product to the masses. This will service your existing base of clients as well help you to draw new customers. This is the stage when there is production at full swing and once you have been able to create a demand for your product, you need to sell in order to satisfy the wants of the masses.
  2. Growth: This is the second stage. In this, the product grows. This does not mean that the size of the product grows. The reference here is to the growth of the demand and the revenue. The more you sell your product. The more you are able to earn. This is the profit for which you actually started business in the first place. It is the driving force of all firms and enterprises in the world. At this stage, you may also increase the channels of marketing that you are using at present.
  3. Maturity: Thirdly, the product life cycle reaches a stage of maturity. This is the stage by when your competitors have also come to know of your strategy in use. Definitely, other new entrants pup up in the market. This means that similar items are sold by other brands who try to match up to your level of expertise. As a result, the price of your product starts to fall. For example, you can site the instance of what happens with Appleā€™s iPhones when other competitors also start to sell phones with similar features. The prices just drop.
  4. Decline: This is the last stage in the product life cycle. The demand for your product totally died out. Now, it is different if you have an extremely excellent product. Then, there may still be buyers for it. However, you may later come up with idea of selling something free with the product. That is one of the most common offers that you can see in the market. The best way to tackle this problem is novelty. This means that you either dad some feature to the existing product or simply change the packaging to keep the masses interested.

This is why product life cycle is very important for every business in the world and you need to be able to keep up with the changing trends and needs.

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