What are the 5 stages of the product life cycle?

The life cycle of a product is the progression of a product through 5 different stages: development, introduction, growth, maturity and decline. The concept was developed by German economist Theodore Levitt, who published his product lifecycle model in the Harvard Business Review magazine in 1965.We are still using this model today. Each product has a life cycle, which goes from product development to recall. But what are the five stages of the product life cycle? In general, the life cycle of a product consists of product development, market introduction, growth, saturation, and decline.

Since most companies understand the different stages of the product lifecycle and that all the products they sell have a limited lifespan, most of them will invest heavily in developing new products to ensure that their businesses continue to grow. Products, like our friend the frog, go through several stages of development. The path they take through these stages is called the product life cycle. It begins when a product is available for purchase for the first time and ends when it is removed from the shelves, real or virtual.

Once a product is developed, it normally goes through the four stages of the product life cycle, from introduction to decline, before being gradually removed from the market. The product development stage is the research phase that precedes the launch of a product. Technically, this isn't part of the product lifecycle, but it's an important step that needs to be considered. Once a product has been developed, the stage of introducing the PLC begins.

The product is introduced to the market for the first time at this stage. The launch of a product is often a high-risk moment in the product life cycle, although it does not always determine the ultimate success of the product. marketing and promotion peak during the introduction stage, and the company usually invests a significant amount of effort and capital in promoting the product and putting it in the hands of consumers. However, this is usually a period of high expenses for the company, with no guarantee that the product will pay for itself with sales.

The product has been accepted by customers during the growth phase and you are now trying to increase your market share. That means demand and revenues are rising, ideally at a constant rate. The time needed to achieve consistent growth depends entirely on your product, the current market landscape and the rate of customer adoption. If you introduce a product to an already crowded market, expect the competition to react quickly.

Because the market is so crowded, the least successful competitors are often kicked out of the competition during the maturity stage. This is known as a shaking point. At this point, saturation has occurred and sales volume has peaked. The maturity stage can last a long or short time, depending on the product.

For some brands and products, such as Coca-Cola (KO), the maturity period is long and prolonged. Overtaken by companies such as Microsoft (MSFT), typewriters are coming to the end of their phase of decline, with minimal sales (if any) and dramatically reduced demand. To type in the modern world, almost everyone uses a desktop computer, laptop, tablet or smartphone. As a result, these products are in the growth and maturity stages of their life cycle.

Although AI (artificial intelligence) has been in development (and application) for many years, the industry continues to go further and develop new products that are approaching the introduction phase of the PLC. Existing products, such as AI-powered sex robots or autonomous cars, are still under development. Those that have been released to the market are still in their infancy, as consumers are still testing and adopting them. Many of us grew up watching videotapes on VCRs (video cassette recorders for any Generation Z reader), but nowadays it would be difficult to find one in someone's house.

With the rise of streaming services such as Netflix and Amazon, video recorders have been effectively phased out and are in the final stages of decline. It is often possible to research historical life cycles to determine the acceptance rate. Also, keep in mind that the benefits of a longer or shorter life cycle are entirely dependent on the stage. However, if you foresee that it will enter a period of prolonged growth, it may be worth it.

The current state of the economy can have a direct impact on the length of the life cycle of a product. A sudden drop, such as that caused by a global pandemic, can lengthen the introduction phase due to lower or selective consumer spending. However, recovering from a financial crisis can also shorten an initial phase and even growth phase due to a massive increase in spending. This is a broad example and depends entirely on your target audience, the impact on your industry, etc.

You just have to keep an eye on market trends and take note of any changes to ensure that you're prepared to adapt as needed. The product lifecycle guides a company as it moves from introduction to growth and maturity and, eventually, to decline. It is not intended to be a rigid tool, and it is essential to use common sense and a general understanding of the market together with the life cycle. Products, like people, have life cycles.

The life cycle of a product is divided into four stages: introduction, growth, maturity and decline. This is the first stage of a product's life. The product is new. New product means “a product that opens up an entirely new market, replaces an existing product, or significantly expands the market for an existing product”.

The initial stage needs a greater amount of investment. At this stage, the product is introduced to the market and made available to customers with a slow increase in sales. Profit may be low, due to strong publicity and sales promotion to stimulate demand. When I was 12 years old, I used to be confused about my cousin's CD collection.

Why have a CD when I can go to iTunes and listen to all my favorite songs? This is a perfect example of a product life cycle (PLC) in action. The product life cycle refers to the six stages a product goes through during its existence, from development to decline. Business owners and sellers use the product lifecycle to make important decisions and strategies about advertising, budgets, product pricing, and packaging. In the marketing industry, the typical description of the product life cycle has only four main stages: introduction, growth, maturity, and decline.

At HubSpot, we agree that these are vital to a product, but the two stages, “development” and “decline”, are not addressed enough. The development stage of the product life cycle is the research phase before a product is introduced to the market. This is when companies attract investors, develop prototypes, test the effectiveness of products and design strategies for their launch. This phase can last a long time, depending on the complexity of the product, how new it is and the competition.

For a completely new product, the development phase is particularly difficult because the first pioneer of a product is not always as successful as subsequent iterations. Moving into the 21st century, we see the rise and fall of Vine, a shortened video-sharing application that was the source of many memes at its peak, but that eventually declined due to other platforms. The stages of the life cycle of an international product are identical to those in the life cycle of a normal product. However, the development stage is different, because local customs and regulations can affect the time it takes to bring the product to a new market.

The product life cycle is the period that elapses from when a product is introduced into the consumer market until it deteriorates or stops being sold. This cycle can be divided into different stages, including development, introduction, growth, maturity, saturation, and decline. The life cycle of a product is typically used to determine when it is appropriate to increase advertising, adjust prices, explore new markets, redesign packaging, and even adjust messages. The product development stage is the research phase before a product is launched.

Technically, this falls outside the definition of the product life cycle, but it is a vital step that must be taken into account. In short, it is used to determine the viability of a product, confirm when it should be released and how to approach its official launch. The introduction stage is when the product is first launched on the market. It's where you go beyond the product itself to develop a market for the product and create awareness about the product.

Here, you'll work to create a target market, perform market analysis to understand the competitive landscape and, ideally, get your first sales. This is also the stage in which intellectual property rights are protected. Depending on your position in the market, product prices may be high to recover the costs associated with the development stage. It can also be lower, meaning that you'll initially run at a loss until you gain traction.

This is where initial funding efforts and mapping out your cash portfolio are vital to the success of your product. In the growth stage, the product has been accepted by customers and is now striving to increase its market share. That means that demand and revenues are growing, ideally at a constant rate. How long you achieve consistent growth depends entirely on your product, the current market landscape and the rate of customer adoption.

The mature stage is when sales stabilize. This doesn't mean you won't keep growing, you just won't see the same level of rapid growth as before. Usually, at this point, you'll start to lower prices, offer free additions, or make other adjustments to keep your products competitive. At the same time, you've also become more efficient.

Production costs tend to decrease, so that costly errors in the manufacturing process can now be avoided. Even your marketing expenses are likely to be more refined and effective at this stage. So, while it may not be growing in volume, it's likely to be more profitable at this stage. However, it's worth remembering that your competitors are likely to have already consolidated their own offerings at this stage.

This means that they have taken a share of the market, which has led to stagnant growth of their own product. It's likely that most consumers are already using a version of your product and have started to develop their brand preferences. If you can, try running different forecast scenarios during this time to see what each decision could lead to based on product performance. We hope you have other products to help support your business when one deteriorates.

Ideally, you should have several products or iterations running at different points in the product lifecycle. During the presentation stage, you can try to position your product as the cheapest, best, or with any number of benefits over the competition. This is when you not only establish the brand of the product, but also your business. Each stage has a potential impact on your pricing.

The introduction stage consists of positioning yourself against the competition and trying to compensate for development costs. Growth can be achieved in a variety of ways, depending on availability, additional features, support, and other benefits. Maturity and saturation can be directly affected by competition, leading to new developments and price declines. The decline phase will almost ensure a drop in price or a return to the introduction stage with a new version of the product.

This will restart the pricing conversation, as the performance of the original product will directly influence your initial price position. The better you understand where your product is in the cycle, the better you can prepare and adjust prices when necessary. The performance of a product can directly depend on how well you market it. Fortunately, each stage helps you test and refine your marketing strategy.

During the presentation phase, you'll explore different channels, try different advertising media and work to connect with a target audience. The growth stage is when you refine your channel selection, find a winning text and streamline your spending. The stages of maturity and decline are another opportunity to test new channels and adjust your strategy. Maybe you'll introduce a blog, try to sell the product on a channel that you avoided with new messages, or try more variations in text and images to increase your profitability.

Knowing the stage your product is taking and what comes next can help you better prepare for adjustments. For example, if you're in the growth phase and you're starting to see signs of maturity or even decline, you can start exploring ways to expand the value of your product. As we said before, this could involve performing an upgrade, adding additional services, or trying to access adjacent markets. While some incredibly expensive models can achieve 8K resolution, most sales and support are focused on 4K resolution.

Depending on your position in the market, it may make sense to be the market leader and focus on high-end sales. On the other hand, if you are dedicated to mid-range televisions and monitors, it probably makes more sense to keep your products with a 4K output with some 8K options to see if it's relevant. Following the example of television, the life cycle of your product also depends on how quickly consumers accept it. This is due not only to the price of the previous models, but also to the compatibility of streaming services, consoles, traditional cables and other hardware manufacturers.

This has led to a somewhat extended product life cycle. The introduction phase took years to be officially accepted by the market. In addition, the promised replacement of the 8K may be years away, which means that the growth and maturity stages could be extended even longer. It is often feasible to explore historical life cycles to see what the acceptance rate might be.

And keep in mind that the benefits of a longer or shorter life cycle are entirely dependent on the stage. If you stay in the filing stage for too long, you may not see an effective return to cover the expenses. However, if you expect it to enter a prolonged growth phase, it may be worth it. The real state of the economy can directly affect the length of the life cycle of a product.

A sudden drop, caused by a global pandemic, for example, can lengthen the introduction phase due to lower or selective consumer spending. On the other hand, recovering from a financial crisis can also shorten an introductory and even growth phase due to a massive increase in spending. Save 40% on LivePlan business plan software until January. At this stage, the product maintains a fairly stable market share, and companies may consider increasing their services through additional sales.

That's why it's important to understand what phase your product is in order to make better commercial and marketing decisions. For example, a company is more likely to incur high marketing costs of 26 million reais in the introduction phase. However, this cycle informs the company about how to best use its resources, what are the future prospects of its product and how to plan strategically to launch new products to the market. Since then, product lifecycle theory has evolved to focus less on geography and more on marketing.

At this stage, companies tend to spend a lot of money without generating revenue because the product is not yet being sold. Product sales are starting to fall due to market saturation and alternative products, and the company may choose not to undertake additional marketing efforts, since customers may have already determined if they are loyal to the company's products or not. Let's discuss the ins and outs of the product lifecycle and how you can take advantage of it to manage your business. In the late 1960s, Raymond Vernon, professor at Harvard Business School, developed this marketing theory in response to an economic model that did not take into account current trends in international trade; that is why it was originally called international product life cycle theory.

At this point, marketing is mainly concerned with avoiding competition, and companies often develop new or modified products to reach different segments of the market. The maturity stage of the product life cycle is the most cost-effective stage, the time when production and marketing costs decrease. They may need to adjust the brand message or improve the features of the product, and they may continue to invest heavily in product marketing and advertising. This is the phase in which a company begins to be more efficient and learns from the mistakes made in the introduction and growth stages.