Product Life Cycle shows the different stages a product goes through from introduction to withdrawal. It has implications for the marketing strategy of a firm as it seeks to introduce, grow and maintain market share.
(Image sourced from Google - Haltian)
Introduction
- This is a stage of high costs and less revenue
- Focus should be on increasing product awareness, finding sellers willing to stock up our products.
- Strategy should be to penetrate the market through advertising and pricing
Growth
- Focus should be on expanding from small sellers to mass markets
- Strategize on better customer support, and offering new product features
Maturity
- Having reached this stage, we can target profitability and focus on extending the period through product differentiation. Pricing decisions will have to be made based on market conditions and competition
Decline
- Try to delay the final termination of product through targeted marketing. Ultimately, decision will need to be made regarding letting the product go.
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