Quick Guide To Understanding the Product Lifecycle
As manufacturers, we know much more goes into producing products than consumers realize. From a product’s inception to the moment it’s taken off store shelves, the product goes through a variety of changes, and each change is accompanied by the hard work of a myriad of different parties.
The more one understands this process, the more one can maximize their profits. That’s why we’ve compiled this quick guide to understanding the product lifecycle.
What Is the Product Lifecycle?
Every living thing goes through a life cycle. Eggs hatch into tadpoles which become bullfrogs. Caterpillars turn into cocoons which turn into butterflies. Similarly, a product lifecycle describes the process a product goes through from “birth,” or initial development to “death,” or its retirement from the market.
Stages of the Product Lifecycle
As the name would suggest, this is the stage in which the product is first introduced to the market. This is arguably the stage that requires the most work from manufacturers. Sales are slow, and manufacturers have to research the consumer response to their product and adjust their marketing accordingly.
If a product completes the introduction stage successfully, it will enter the market growth stage. This is when a product gains traction and sales increase. As the sales increase, competition also increases with it. This will likely increase the need for advertisements to help establish the product’s place in the market.
When the product is firmly established, it has officially reached the maturity stage. Manufacturers no longer have to do high-volume marketing to keep the product on the market. However, since by this point the market will begin to become saturated, keeping your product as distinct as possible is critical.
The maturity stage can last for years at a time, but eventually, all good things must come to an end. Once demand drops, the product will eventually fade from the market. Several things can lead to decline, such as:
- Market over-saturation
- Changing consumer behavior
- Economy deterioration
- World events
Eventually, there are a few choices available for a company. They can attempt to reinvent the product and reintroduce it again to keep it relevant, or they can retire the product altogether.
How To Use the Product Lifecycle To Your Advantage
There is a reason why using guides to understand a product lifecycle is important. When one is aware of the process a product goes through once it hits the market, they can use this information to make decisions that will help their product be successful.
For instance, if you know you’re about to introduce a product, you can adjust your budget to put more funds toward market research. When a product’s sales plateau later on, you can make cost-cutting steps accordingly or start taking steps toward reintroducing your product.
While you discover ways to help your product thrive in the market, let Industrial Automations help you with manufacturing by providing you with the industrial electronic parts you need to keep your factories going.