The Product Lifecycle

University:
California State University, Northridge
Course:
BUS 104 | Introduction to Business
Academic year:

2023
Views:

171

Pages:

1
Author:

JJIssac

THE PRODUCT LIFECYCLE Stages of Development Just like living things, products experience different stages from birth to decline. When a new product first launches onto the market, it enters the Introduction phase. During this pioneering time, sales are still low as buyers become aware of its existence through promotional efforts. Word slowly spreads in the ensuing Growth stage, until a peak is reached in Maturity as the product gains wide acceptance. Eventually though, Saturation sets in as interest starts to wane. Competition grows fiercer too. If not adapted, sales will ultimately enter the final Decline stage until the product is no longer viable. Reaching Consumers It takes effort to gain traction during those early phases. Adoption follows five steps - gaining Awareness, sparking Interest, prompting Evaluation of value, encouraging Trial use, and cultivating long-term Adoption as a regular purchasing choice. Savvy marketers employ diverse communication tactics to smoothly guide buyers through this process. Target Markets Require Finesse How a product is positioned depends highly on whether targeting Consumer or Industrial client s. Whereas individuals make personal purchases, organizations dominate industrial trade. Distribution tends to be more concentrated for industrial customers compared to households. And Purchasing dynamics differ, with multiple influencers often involved in complex B2B decisions versus individual consumers. Impulse buys are rarer in steady, serious industrial settings too. Navigating External Forces Beyond internal controls lie evershifting external factors continuously impacting any business landscape. Economic conditions like inflation and interest rates dictate realities outside management's control. Technological progress also creates perpetual disruption. Government rules and policies set the terms. Intense Competition requires strategic adaptation. And dynamic Social trends shape consumer preferences. This diverse Environment demands deft monitoring and reaction. Dynamic Strategizing is Key By weighing internal strengths against external variables through careful Environmental Analysis, savvy operators develop timely, responsive strategies. Changes like emerging technologies may breed fresh opportunities while threatening obsolescence. Regulations redefine boundaries as competitors jockey for edge. And consumers' lives drive relevance amid all macro change. Only through diligent scanning and flexibility can market offerings be optimized for maximum impact over the long product journey.