Explain life cycle of a Product.

THE PRODUCT LIFE CYCLE

Products often go through a life cycle. Initially, a product is introduced.

Fig: Life Cycle of a product

Product Introduction/ Development Stage
This is the first stage in the product life cycle. Before a new product is introduced in the market place, it should be created first. The processes involved in this stage include generation of an idea, designing of the new product, engineering of its details, and the whole manufacturing process. This is also the phase where the product is named and given a complete brand identity that will differentiate it from the others, particularly the competitors. Once all the tasks necessary to develop the product is complete, the market promotion will follow and the product will be introduced to the consumers. Product development is a continuous process that is essential in maintaining the product’s quality and value to consumers. This means that companies need to continuously develop or innovate their products to out ride new and existing competitors.

Product Growth Stage 

This is a period where rapid sales and revenue growth is realized. However, growth can only be achieved when more and more consumers will recognize the value and benefits of a certain product. In most cases, growth takes several years to happen, and in some instances, the product just eventually died without achieving any rise in demand at all. Hence, it is important that while the product is still in the development and introduction stages, a sound marketing plan should be put in place and a market and primary demand should be established.

Product Maturity and Saturation Stage
In the maturity stage, the product reaches its full market potential and business becomes more profitable. During the early part of this stage, one of the most likely market scenarios that every business should prepare for is fierce competition. As business move to snatch competitor’s customers, marketing pressures will become relatively high. This will be characterized by extensive promotions and competitive advertising, which are aimed at persuading customer to switch and encouraging distributors to continue to sell the product.

In the middle and late phases of the maturity stage, the rate of growth will start to slow down and new competitors will attempt to take control of the market. In most cases, many businesses fall and lose money in these stages as they focus more on increasing advertising spending in hope of maintaining their grip of the market.

Product Decline Stage
The decline stage is the final course of the product life cycle. This unwanted phase will take place if companies have failed to revitalize and extend the life cycle of their products during the maturity stage’s early part. Once already in this phase, it is very likely that the product may never again recover or experience any growth, eventually dying down and be forgotten.