The four stages of the product life cycle are an important concept in business. If you are a manufacturer, software, or retailer, it’s important to know where your products are in this stage so that you can plan accordingly. Every type of industry has different needs when it comes to its own specific types of goods or services. In this article, we’ll go over the four stages of the product life cycle.
It’s important to understand the four stages so you can prepare your marketing strategy. Every type of industry has different needs when it comes to its own specific types of goods or services. In this article, we’ll go over the four stages of the product life cycle.
Breaking Down the Four Stages Of The Product Life Cycle
Product life cycles are central to understanding how products and businesses evolve. A product is a bundle of goods or services that satisfy the same need, want, or desire.
The four stages of the product life cycle can be broken down into the introduction, growth, maturity, and decline stages. These phases represent where your company’s current strengths lie in the market.
Here’s a quick overview of the four stages of the product life cycle.
- The introduction stage – the product is introduced into the market and consumers are unaware of it.
- The growth stage – the product becomes more popular, but not everyone knows about it yet.
- The maturity stage – people know about this product and have established a routine with it
- The decline stage – sales start to decrease as newer products come out or customers get bored with this one
As a business owner, you must develop the right strategy for where your product or service is in its product life cycle. Let’s dive more in-depth into each stage.
Introduction Stage
The introduction stage of the product life cycle is the first part. At this point, the product is introduced into the market and your customers are unaware that your company even exists. In this stage, retailers have to create a demand for the new products that they carry by advertising them in newspapers, on TV, or over social media. Manufacturers will try to get their products stocked at as many stores as possible so people can see.
This can be a great opportunity to introduce them to you and what you have to offer! During this time, it’s important not to spend too much money on marketing because no one knows about you yet. Once you get the word out, your customers will start to notice and come back for more.
Growth Stage
The growth stage is where things really begin to take off! Customers are now aware of what you have in store and they want it. You’re going to need a little bit more money at this point because people are actually buying your products and you want to make sure they have enough of them.
The best thing about this stage is that people are excited about what’s new in-store, which means it will also be easier to market! You just need a few more customers so the word can spread even more quickly. This stage is when you should be doubling down on your marketing efforts.
Your strategy for this stage should be to market to as many people with different interests and needs. This is when your variety will come in handy because you’ll have multiple things for customers to choose from!
This could also be the perfect time to hire a freelance growth marketer if you’re interested in helping out with your product.
Maturity Stage
The maturity stage is when your business should be booming and the goal of a company shifts towards optimizing its profits. It’s where you’re making the most amount of money and that can’t stop. You’ve made it to this point so there are really only two things you need: more customers, or a new product line.
In the maturity stage, your product or service is a household name. You’re the one who your customers go to for this particular thing and they trust you with it! The best part about having such loyal customers is that their word of mouth goes far, which means marketing would be more effective. Get ready because people are only going to want more from you now that they know what you can provide.
The maturity stage of the product life cycle typically shows that sales will eventually peak and then slow down. Your market strategy in this stage should be to maintain the sales rate. To do this, try introducing an updated version of your product or service, which means it will also be easier to market! You just need a few more customers so the word can spread even more quickly.
The Decline Stage
In the decline stage, your product or service will start to lose market share. This means people are either not buying as much from you anymore or they’re buying from your competitor. The decline stage is the perfect time to figure out why you lost market share, and then decide what to do about it.
You might have been a household name at one point but now you’re becoming less desirable for consumers because newer options are available and they have become more popular. Your customers seem to be switching over as well which means that marketing could be ineffective
If you have a loyal customer base, then your word of mouth goes far and marketing becomes more effective. Get ready because people are only going to want more from you now that they know what you can provide.
Real Life Example of A Product Life Cycle
Let’s do an example of a product life cycle with a familiar product, iPhones. Apple’s iPhone is a mobile phone that was first introduced on June 2007. The introduction stage was when Apple first introduced the phone to the public. It was not until 2009 that we started seeing signs of growth for this company as they released iOS. With their release of iOS and App Store, it made it easier for more people to experience the iPhone.
The iPhone reached the maturity stage in 2012 with its release of iOS and App Store which made it easier for more people to experience the iPhone. In 2017, we see the decline stage beginning due to Apple releasing newer products into their portfolios such as their iPad Pro or AirPods.
Conclusion
It is important to understand the product life cycle in order to know what stage of growth your business is in and how you can create a marketing strategy that best suits it. By knowing where your product is in its life cycle, you can best plan where you’d like it to go. If you have any questions about bringing on a growth marketing lead to your team, feel free to contact me here.
