The Lifecycle of a Product Kondrasheva Masha Group

The Lifecycle of a Product Kondrasheva Masha Group B 1

Companies look at their sales from the initial launch of the product and before his completely disappearance from the market.

Launch/Intro This is when the product is launched into the market after development and testing. Sales are often quite low to begin with and may increase quite slowly. At this stage, the most important thing to introduce competent marketing and advertising of the product.

Growth If the product is promoted well and well received by the market, then sales should grow significantly. Unfortunately growth cannot last forever – eventually sales growth will start to slow.

Maturity or Saturation At this point sales aren’t growing but they also are not falling. An extension strategy is a marketing plan to extend the maturity stage of a product. For example finding new markets for an existing products, re-launch it with new packaging and advertising.

Decline During this phase sales decline steadily. The product eventually becomes so obsolete that the only option is to withdraw it from the market and/or replace it with a newer product.

How the product life cycle may help to business? It is possibility to choose marketing planning, marketing mix decisions such as price or promotion changes, or new product launches. Identifying how cash-flow might be affected by the cycle.