In businesses, every step requires strategic planning to ensure sales and revenues. The same formula goes for products and services too. They undergo certain important stages from production to marketing. The name assigned to those stages is product life cycle management. Depending on the cycle, marketers can examine the product’s life cycle and strategize marketing techniques to keep them afloat.
This article will help you understand product life cycle management and its stages. Let’s learn all about it.
Product Life Cycle
It can be referred to the time and length of the product starting from introduction to consumers via the marketplace until it exits from it.
The product life cycle is categorized into 4 stages— introduction, growth, maturity, and decline.
Moreover, it is a beneficial tool for marketing professionals and managers that helps them to decide certain factors. It includes developing strategies, reducing prices, expanding, redesigning, and more.
In other words, the process of analyzing and strategizing methods to maintain and support a product in the market is called the product life cycle.
Stages of Product Life Cycle Management
There are 4 stages :
When a product is newly launched in the market, the sales and profits are low. However, it further grows gradually. In the introduction stage, a product requires marketing efforts. Also, the main aim of this stage is to achieve recognition and incite product trials by consumers.
There are two kinds of price-setting methods in the first stage. It includes price skimming and price penetration. The former is a price strategy to initially charge a high price on a product and then lowers it as the market grows. The latter is a price strategy to initially keep a product price lower and then gradually increase related to market growth.
When a product continues to grow and meet market needs, then the product will reach the growth stage. With products in demand, sales revenues get higher. However, in the growth stage, the competition gets fierce as the market grows and the number of customers increases too. In addition, in the growth stage, cash flow and profits improve, and sales tend to increase to attract new consumers.
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During the maturity phase, product sales and demand increase. Manufacturers focus on strategizing the market share and may have to lower prices due to high competition, offer incentives to distributors, add certain new features to the product, and adjust marketing.
In this stage, the sales of product prices and profitability start dropping. Even though profits are low at this point but it also generates maximum profits. Moreover, the sales get low due to certain factors. It includes new innovative products in the market, the better substitution of products, and more.
In the last stage, manufacturers can either continue modifying new strategies to market products or can withdraw their products.
The 4 stages of Product life cycle management helps you to determine and analyze strategies related to products or services. Marketers need to refine and adjust the product’s needs depending upon the market requirements. It is essential to modify elements like customer feedback, market conditions, product life cycle, and more. It will further help them to sustain, attract customers, and gain profits.
We hope this article will help you to learn all about product life cycle management and its stages that will work best for your business. To make your business a huge success, get in touch with the Asinwiser team today!