What is the product lifecycle?
The product lifecycle refers to the stages that a product goes through from its introduction to the market until its eventual decline and discontinuation.
Each stage presents unique challenges and opportunities for businesses, and understanding the product lifecycle helps companies make informed decisions regarding product strategies, marketing efforts, and resource allocation. To navigate the complexities of the product lifecycle, companies often turn to a Product Lifecycle Management (PLM) system.
What are the product lifecycle stages?
The product lifecycle consists of the following distinct stages:
- Development: The product concept is formulated, and research, design, and development activities take place. The product undergoes prototyping, testing, and refinement before moving on to the next stage.
- Introduction: The product is launched into the market, and customer awareness and demand are created. Marketing efforts focus on product promotion and gaining initial customer acceptance.
- Growth: Sales and customer adoption of the product increase rapidly. Market competition intensifies, and companies aim to expand market share and profitability.
- Maturity: The product reaches its peak level of market penetration, and sales growth stabilizes. Competition remains high, and companies focus on retaining market share, maximizing profits, and differentiating their products.
- Decline: Sales start to decline due to various factors such as market saturation, technological advancements, or changing customer preferences. Companies may consider product modifications, pricing strategies, or phasing out the product.