Product lifecycle predicts sales and guides marketing strategies. The introduction phase requires strong promotion, growth phase emphasizes brand message, and maturity phase sees sales decline due to competition.
The role of the product lifecycle in marketing is primarily to predict sales. The different stages of product lifecycles, from introduction to maturity, are unavoidable and typically correspond to predictable increases and decreases in revenue. In this way, product lifecycle factors allow business strategies to be planned in conjunction with the marketing mix to maximize brand potential at each stage.
For example, early in the cycle, the product is not well known to its target market; therefore, the promotion part of the marketing mix requires a strong emphasis. The entire marketing mix of “product, price, location or distribution and promotion” is then used strategically to create awareness and desirability with the target audience. If the introductory phase of the product lifecycle in marketing is not handled effectively, the item may fail to interest or capture the attention of its consumer base. Successful product lifecycle management is crucial at all stages, but it is especially important to build sufficient brand awareness when new items are introduced to the market.
After a successful introductory phase in the marketing product lifecycle, sales typically begin to increase. Otherwise, marketers are likely to spend some time on product development in addition to trying other promotional strategies. This growth stage of the product lifecycle in marketing is often a long one, with a lot of emphasis on creating a strong brand message. For example, if a cereal product is not selling as well as expected, market research can be done to try to find out how the item can best be marketed to appeal to the needs and wants of its target consumer. Marketers should pay close attention to the growth part of the product lifecycle, as this will often be the phase to generate the most sales.
When the product reaches its maximum growth through lifecycle management strategies, it means that over time the product has matured and new products in its category tend to reduce sales. The maturity stage of the product lifecycle in marketing is the last part, when sales slow down. The amount of revenue decline experienced due to product maturity in the market depends on many factors, such as its relevance to the target audience and the strength of competitors’ products. While the product may continue to be sold during the maturity stage and still sell reasonably well, the amount of sales during this period tends to be much lower than in the earlier growth part of the marketing lifecycle.
Asset Smart.
Protect your devices with Threat Protection by NordVPN
