Post by ruhaimaromana22 on Nov 2, 2024 6:44:45 GMT
Product life cycle
Nowadays, one of the changes that is constantly evolving in the business world is the market, an aspect that is undoubtedly fundamental for the success of any product.
Due to these constant changes, companies must always remain alert, since products have a limited life and undergo significant evolution. These changes range from launch to withdrawal, and go through different stages and undergo variations in the sales process.
What is a product life cycle?
In marketing, this aspect is known as the set of stages that a product must go through, from its introduction into the market to its withdrawal.
The life cycle of a product arises social media marketing service from the analogy that exists between the evolution that human beings and products undergo, both must go through different processes and stages throughout their existence.
From the moment a living being is born, it begins a life cycle that goes through birth, adolescence, adulthood, old age and death. All of these stages are what a human being must go through to complete his life cycle in the world correctly. The same occurs with a product, which must also go through a series of stages that make up its life cycle in the market.
Stages of a product life cycle
The life cycle of a product consists of 4 main stages: introduction, growth, maturity and decline. Identifying all these factors is a negative part of product evolution and demand.
In addition to duration, which is one of the phases that determines the company's ability to adapt its products to the needs of consumers and ensure that they can be met.
Introduction
This stage of a product's life cycle is the one that generates the greatest uncertainty and risk. It is also the stage that requires the greatest investment and cost, since it is the first contact that a product experiences with the consumer. The introduction of a product must be carried out once a marketing plan is in place.
On the other hand, this stage of a product's life cycle must include a prior market study, in addition to product development, investment in communication campaigns and promotional marketing actions, all of these aspects are part of a marketing plan.
One of the keys to this stage is to define and work on the positioning of the product, and to know in advance the response that the market will have to it. In this way, it will be possible to react quickly and with orientation to the strategies previously outlined within the marketing plan.
Typically, in the introduction of a product's life cycle, demand is a lower aspect than supply. All this is because the highest percentage of sales comes from the most innovative consumers and early adopters.
Growth
Once the objective of introducing the product to the market has been achieved, the growth stage begins. In this stage, the mission is to position the product in the defined segment so that it begins to be accepted by consumers. In this way, sales will begin to grow, and therefore, profits for the company.
Increased profits lead to lower manufacturing costs, either due to economies of scale or the acquisition of experience in the manufacturing process. Despite this, competition is not usually an aspect that is highlighted much during this stage. However, new competitors may appear, and the differences between products must be specified, thus taking the first step towards building brand positioning.
The key to the growth stage is to strengthen the brand positioning and make changes so that the product adapts adequately to demand.
Maturity
This stage of a product's cycle is usually the longest. It occurs once the product has reached its highest point in terms of market share.
During the maturity stage, many changes occur in relation to sales. These generally start at a slow and decreasing pace until they reach a point of acceptable stability, which then begins to stop.
Competition at this stage is an aspect that must be taken as a priority. Not only to compete on price, but also to identify and work on the factors that allow obtaining a product with a value proposition that differentiates it from the rest on the market.
Anticipating the decline in benefits with proposals and innovations that make the product attractive and satisfy their needs is the key to sustaining sales and achieving success at this stage of a product's life cycle.
Slope
This is a life cycle stage that no company wants to reach. It occurs because sales decline and consumers substitute them for more attractive options. In general, during this stage all the benefits that could be obtained in the three previous phases turn into losses.
A decline causes a product to cease to be profitable for the company, which makes it necessary to take necessary measures. However, the most advisable thing to do once this stage of the life cycle is reached is to retire it, since there are few opportunities for a company to revive the product and satisfy customers through it.
The key to success at this stage is to minimize the investment made, and plan the actions necessary to replace the product or modify it but focusing on a new market.
Knowing and managing each of the stages of a product is vital to making the right decisions that lead a company to success.
Thank you for reading our blog. We invite you to come and read all the ones we have written that you will surely like, like this one, click here.
We invite you to visit our Instagram feed where we also show you in detail what we do with each graphic design project.
Nowadays, one of the changes that is constantly evolving in the business world is the market, an aspect that is undoubtedly fundamental for the success of any product.
Due to these constant changes, companies must always remain alert, since products have a limited life and undergo significant evolution. These changes range from launch to withdrawal, and go through different stages and undergo variations in the sales process.
What is a product life cycle?
In marketing, this aspect is known as the set of stages that a product must go through, from its introduction into the market to its withdrawal.
The life cycle of a product arises social media marketing service from the analogy that exists between the evolution that human beings and products undergo, both must go through different processes and stages throughout their existence.
From the moment a living being is born, it begins a life cycle that goes through birth, adolescence, adulthood, old age and death. All of these stages are what a human being must go through to complete his life cycle in the world correctly. The same occurs with a product, which must also go through a series of stages that make up its life cycle in the market.
Stages of a product life cycle
The life cycle of a product consists of 4 main stages: introduction, growth, maturity and decline. Identifying all these factors is a negative part of product evolution and demand.
In addition to duration, which is one of the phases that determines the company's ability to adapt its products to the needs of consumers and ensure that they can be met.
Introduction
This stage of a product's life cycle is the one that generates the greatest uncertainty and risk. It is also the stage that requires the greatest investment and cost, since it is the first contact that a product experiences with the consumer. The introduction of a product must be carried out once a marketing plan is in place.
On the other hand, this stage of a product's life cycle must include a prior market study, in addition to product development, investment in communication campaigns and promotional marketing actions, all of these aspects are part of a marketing plan.
One of the keys to this stage is to define and work on the positioning of the product, and to know in advance the response that the market will have to it. In this way, it will be possible to react quickly and with orientation to the strategies previously outlined within the marketing plan.
Typically, in the introduction of a product's life cycle, demand is a lower aspect than supply. All this is because the highest percentage of sales comes from the most innovative consumers and early adopters.
Growth
Once the objective of introducing the product to the market has been achieved, the growth stage begins. In this stage, the mission is to position the product in the defined segment so that it begins to be accepted by consumers. In this way, sales will begin to grow, and therefore, profits for the company.
Increased profits lead to lower manufacturing costs, either due to economies of scale or the acquisition of experience in the manufacturing process. Despite this, competition is not usually an aspect that is highlighted much during this stage. However, new competitors may appear, and the differences between products must be specified, thus taking the first step towards building brand positioning.
The key to the growth stage is to strengthen the brand positioning and make changes so that the product adapts adequately to demand.
Maturity
This stage of a product's cycle is usually the longest. It occurs once the product has reached its highest point in terms of market share.
During the maturity stage, many changes occur in relation to sales. These generally start at a slow and decreasing pace until they reach a point of acceptable stability, which then begins to stop.
Competition at this stage is an aspect that must be taken as a priority. Not only to compete on price, but also to identify and work on the factors that allow obtaining a product with a value proposition that differentiates it from the rest on the market.
Anticipating the decline in benefits with proposals and innovations that make the product attractive and satisfy their needs is the key to sustaining sales and achieving success at this stage of a product's life cycle.
Slope
This is a life cycle stage that no company wants to reach. It occurs because sales decline and consumers substitute them for more attractive options. In general, during this stage all the benefits that could be obtained in the three previous phases turn into losses.
A decline causes a product to cease to be profitable for the company, which makes it necessary to take necessary measures. However, the most advisable thing to do once this stage of the life cycle is reached is to retire it, since there are few opportunities for a company to revive the product and satisfy customers through it.
The key to success at this stage is to minimize the investment made, and plan the actions necessary to replace the product or modify it but focusing on a new market.
Knowing and managing each of the stages of a product is vital to making the right decisions that lead a company to success.
Thank you for reading our blog. We invite you to come and read all the ones we have written that you will surely like, like this one, click here.
We invite you to visit our Instagram feed where we also show you in detail what we do with each graphic design project.