The product life cycle consists of four stages: introduction, growth, maturity, and decline. Marketers adjust pricing, promotion, and distribution as the product moves through each stage. The introduction phase involves advertising to create demand, while the growth phase aims to increase market share. The maturity stage sees sales growth slow, and the decline stage marks a decrease in sales. Companies may discontinue the product or find new uses for it.
In marketing, any product offered for sale goes through a series of stages called the product life cycle. As a product reaches each of the stages in a product life cycle, marketers adjust the product’s pricing, promotion, and distribution. There are four stages in a product’s life cycle: introduction, growth, maturity, and decline.
The introduction phase begins before the product is even released. The company advertises in an attempt to create a demand for the product. The product may only be released initially in select areas so the company can see if it’s accepted before spending big bucks on state, national, or worldwide distribution. A common example of this is movies, which often run in select theaters before being released anywhere. In the introductory stage, the price can be low to make the product more accessible to buyers or high to try to recoup development costs.
At this stage, most of the marketing is aimed at early adopters, the people who always want to try out the new gadget or product. Reviews from new users can help influence the opinions of more cautious consumers. If sales do not go well in the introductory phase, the product can be discontinued without ever undergoing the other phases of a product life cycle.
During the growth phase, the company tries to increase its market share, which means it tries to attract people who were going to buy a television, for example, to buy the new model released by the company. To do this, the company can add new features and services to the product. It will widen distribution and create publicity aimed not only at early promoters, but also at the rest of the world. Sales data tends to grow steadily during this phase of the product lifecycle.
The maturity stage marks the end of strong sales growth. The company may be forced to lower its prices to compete with similar products released by other companies. The advertisement will attempt to emphasize the differences between the company’s product and other similar products. In some cases, the company may offer special incentives or promotions to encourage people to choose its product over others in the market. This is usually the longest phase of a product life cycle.
The last stage of a product’s life cycle is the decline stage. At this stage, sales begin to decline. In some cases, the company will cut losses and discontinue the product. The company may also choose to further reduce costs and continue to sell the product or add new features and find new uses for it.
Protect your devices with Threat Protection by NordVPN
