The product life cycle

The product lifecycle is a concept that explains how products go through four distinct stages from birth to death: introduction, growth, maturity, and decline. The product lifecycle is a very important cycle for marketers to know before introducing a new product to the market. The strategies marketers use varies depending on the stage of the cycle it is in. Here is a brief overview of what the stages of the product life consist of and how prices, sales, profits, goals, and marketing strategies change throughout the life of a product.

Introduction Stage
The introduction stage is when a single company produces a single product. The purchasers of the product in this stage are usually the eager first-time buyers. The sales at this point in the cycle are increase at a slow but steady rate yet the profits are still negative due to the research and development startup costs. Pricing strategies are usually high to recover those R&D costs or else low to attract a large consumer base. Marketing in the stage is all about informing the consumer about the product.

Growth Stage
In the growth stage new competitors enter the market creating different variations of the product. The goal of the marketers is to encourage brand loyalty. Sales are now rapidly increasing while profits start to see positive numbers and often times peak. The pricing may need to be reduced if it started off high because of competitors. Marketers promote heavy advertising to seek a competitive advantage.

Maturity Stage
Now the products contain new features and most of the sales come from replacing the products. Marketers are now seeking to attract new users who are maybe late to jump on the product wagon. The sales however start to decline and the profit margins narrow. The prices are set in order to maintain the marketshare. Marketers are now advertising for the purpose of reminding consumers about the product.

Decline
During the decline stage the number of variations for the product decreases and the goal for marketers is to remain profitable and make the decision of whether or not to keep the product. The sales and profits are now declining and the product prices are quite reduced. There is little to no marketing during this stage because of decreased profitability.


Works cited :
Solomon, Michael R., Greg W. Marshall, and Elnora W. Stuart. Marketing: Real People, Real Choices. Upper Saddle River, NJ: Pearson Prentice Hall, 2006. Print.