3..product Life Cycle

PRODUCT LIFE
CYCLE
Naneetha R JMC SRMIST
What is the product life cycle?
The product life cycle is the succession of stages that a product

goes through during its existence,
starting from development and ultimately ending in decline.
Business owners and marketers
Use product life

cycle
to make important decisions and strategies
on advertising budgets, product prices, and packaging.

3
1. Development 4
• The development stage of the product life cycle is the research phase
before a product is introduced to the marketplace.
• This is when companies bring in investors, develop prototypes, test

product effectiveness, and strategize their launch.
• In this stage, companies typically spend a lot of money without bringing

in any revenue because the product isn't being sold yet.
This phase can last for a

long time, depending on
the complexity of the
product, how new it is,
and the competition.
2. Introduction
5
The introduction stage happens when a product is launched in
the marketplace.
•Price skimming: Charging
an initially high price and This is when marketing teams begin building product awareness
gradually reducing and targeting potential customers.
(“skimming”) the price as the
market grows. Typically, when a product is introduced, sales are low and
demand builds slowly.
In this phase, marketers focus on advertising and marketing

campaigns. They also work on testing distribution channels and
building product and brand awareness.
•Price penetration: The positive experiences and word-of-mouth recommendations

Establishing a low price to from these early customers can influence the broader target
quickly enter the market and accelerate product adoption
marketplace and capture
market share, before
increasing prices relative to
market growth.
6
3. Growth 7
During the growth stage, consumers have accepted the product

in the market and customers are beginning to truly buy in
That means demand and profits are growing, hopefully at a

steadily rapid pace
This momentum is crucial for sustaining business operations,

funding further product development, and generating returns on
investment.
here are some challenges that come with the growth stage. As
the market for the product expands, competition grows.
Potential competitors will see your success and will want in.
During this stage, it’s important to keep attracting new

customers and solidify your brand image so you can stay ahead
of the competition.
4. Maturity
The maturity stage is when the sales begin to level off from the 8
rapid growth period.
At this point, companies begin to reduce their prices so they

can stay competitive amongst the growing competition.
Streamlining production processes, negotiating favourable

supplier contracts, and optimizing distribution networks also
become important considerations.
This is the phase where a company begins to become more

efficient and learns from the mistakes made in the introduction
and growth stages.
Marketing campaigns are typically focused on differentiation

rather than awareness. This means that product features might
be enhanced, prices might be lowered, and distribution becomes
more intensive.
9
5. Saturation 10
During the product saturation stage, competitors have begun to

take a portion of the market and products will experience
neither growth nor decline in sales.
At this point, you want your product to become the brand

preference so you don't enter the decline stage. To achieve this,
you’ll want to focus on providing exceptional service and
building strong relationships with your customers.
Businesses must continuously invest in research and

development to improve products and offer new features.
6. Decline
11
Unfortunately, if your product doesn‘t become the preferred

brand in a marketplace, you’ll typically experience a decline.
Sales will decrease during the heightened competition, which is
hard to overcome.
Decline also occurs when products become outdated or less

relevant as newer technologies enter the market.
If a company is at this stage, it'll either discontinue its product,

sell the company, or innovate and iterate on its product in some
way.

3..product Life Cycle

Uploaded by

Copyright:

Available Formats

3..product Life Cycle

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

3..product Life Cycle

Uploaded by

Copyright:

Available Formats

PRODUCT LIFE

The product life cycle is the succession of stages that a product

Business owners and marketers

Use product life

to make important decisions and strategies

on advertising budgets, product prices, and packaging.

• This is when companies bring in investors, develop prototypes, test

• In this stage, companies typically spend a lot of money without bringing

This phase can last for a

In this phase, marketers focus on advertising and marketing

•Price penetration: The positive experiences and word-of-mouth recommendations

During the growth stage, consumers have accepted the product

That means demand and profits are growing, hopefully at a

This momentum is crucial for sustaining business operations,

During this stage, it’s important to keep attracting new

At this point, companies begin to reduce their prices so they

Streamlining production processes, negotiating favourable

This is the phase where a company begins to become more

Marketing campaigns are typically focused on differentiation

During the product saturation stage, competitors have begun to

At this point, you want your product to become the brand

Businesses must continuously invest in research and

Unfortunately, if your product doesn‘t become the preferred

Decline also occurs when products become outdated or less

If a company is at this stage, it'll either discontinue its product,

You might also like