What is Product Life Cycle? Definition of Product Life Cycle, Product Life Cycle Meaning and Concept
The product life cycle is the set of stages that the products or services that a company offers or markets in the market go through from their launch to their withdrawal.
From a marketing point of view , each of these phases of the product life cycle requires the use of specific tools to control the evolution of sales and achieve the objectives set.
Everything that begins usually has an end. It also happens with products.
What are the stages of the product life cycle?
These are the most important stages in the life cycle of a product:
- Introduction: The inaugural go-to- market phase . A period where sales are low and they do not expect too many benefits. The objective at this stage is to publicize the product and generate a need among consumers. To do this, it must use some instruments, such as advertising.
- Growth: In this phase, sales begin to rise little by little. Therefore also the benefits. Now the aim is to penetrate the market as much as possible. Advertising of the product or service continues.
- Maturity: Once the product is consolidated in the market, with the consequent growth in profitability, it is necessary to differentiate itself from the competition with tools such as price and advertising.
- Decline: Sales of the product or service fall, as well as profits. The market is currently very saturated and it is time to eliminate the product from circulation or innovate to remain strong.
Precisely, this last aspect is essential to extend the life of the product or service. The goal is that investing in research and development as a marketing strategy allows them to remain competitive in the market and not lose sales.
How do you continue to maintain the life cycle of the products?
Carrying out the following:
- Renewing, improving its quality and characteristics so that it continues to cause interest and impact among consumers.
- Replacing them with a new one. If the image of the product deteriorates and it is difficult to recover it, it is advisable to do a clean slate.
- Extension of the range. A new product or service that is launched on the market can complement the existing ones with new possibilities that have not been attended until that moment. In this way they become more competitive and can reach new audience niches.
Why do products or services have a limited life?
These are the main reasons:
- Because the consumer gets tired of them. Monotony causes saturation and discontent. In variety and differentiation is success.
- Because advances in technology end up out of phase. Above all, it happens with computers, mobile phones and other types of household appliances.
- Due to planned obsolescence.