Post by account_disabled on Feb 28, 2024 5:36:10 GMT
As we know, every product that is launched on the market is subject to a life cycle, known as the " product life cycle ": but what does this process really consist of and what are the phases that distinguish it? First of all, the product life-cycle is used in marketing strategies as it allows you to design and monitor all the phases that concern it in order to be able to analyze the evolution and trend of any product on the market over time: every company will therefore have to take into account both the characteristics of the product and the sector in which it will be offered since its duration will be determined mainly by the sales trend . The entire process can be documented through project management tools such as, for example, Gantt charts capable of providing a graphic representation of a calendar of activities to plan, coordinate and trace specific project guidelines, always keeping the project status clear. 'advancement.
Product life cycle: the phases The life cycle of a product essentially consists Paraguay Phone Number of four phases : introduction , growth , maturity and decline . Let's see them together: Phase 1: introduction The duration of the introduction period depends on the market's predisposition to accept the new product: in this phase the costs for the company are very high as it has to present a mostly unknown product which will consequently be followed by non-existent profits and limited distribution . Phase 2: Growth Subsequently, consumers begin to know the product, the company will then have to identify possible weak points to correct them in order to encourage the growth of the product. With the rapidly rising sales curve , the first profits are achieved, thus reaching a balance between income and expenditure , thus beginning the profit period for the company, in which unit production costs decrease, new distribution channels arise and to include competitors. Phase 3: Maturity In this third phase , sales stabilize, the customer and supplier base is solid and prices begin to decrease to counter the competition.
Even though sales generate profits, they will soon begin to decrease. Phase 4: Decline The product becomes outdated compared to competing ones, sales decline and profit margins are reduced leading the company to replace it with more updated versions or remove it directly from the market. Consequently, the life cycle cost of the product is the cumulative cost between the conception of the product and its disposal . Product life-cycle and its importance in business strategies Therefore, during the life of a product , the company must modify its marketing strategies to respond to the changes in the market and the pressure exerted by the competition by analyzing the various indicators until it is decided to remove the product itself from the market since it is no longer of interest to consumers and synonymous with losses for the company which will thus be able to allocate time and resources to the next product . If you liked this article and you are passionate about digital marketing, our blog awaits you with lots of other content.
Product life cycle: the phases The life cycle of a product essentially consists Paraguay Phone Number of four phases : introduction , growth , maturity and decline . Let's see them together: Phase 1: introduction The duration of the introduction period depends on the market's predisposition to accept the new product: in this phase the costs for the company are very high as it has to present a mostly unknown product which will consequently be followed by non-existent profits and limited distribution . Phase 2: Growth Subsequently, consumers begin to know the product, the company will then have to identify possible weak points to correct them in order to encourage the growth of the product. With the rapidly rising sales curve , the first profits are achieved, thus reaching a balance between income and expenditure , thus beginning the profit period for the company, in which unit production costs decrease, new distribution channels arise and to include competitors. Phase 3: Maturity In this third phase , sales stabilize, the customer and supplier base is solid and prices begin to decrease to counter the competition.
Even though sales generate profits, they will soon begin to decrease. Phase 4: Decline The product becomes outdated compared to competing ones, sales decline and profit margins are reduced leading the company to replace it with more updated versions or remove it directly from the market. Consequently, the life cycle cost of the product is the cumulative cost between the conception of the product and its disposal . Product life-cycle and its importance in business strategies Therefore, during the life of a product , the company must modify its marketing strategies to respond to the changes in the market and the pressure exerted by the competition by analyzing the various indicators until it is decided to remove the product itself from the market since it is no longer of interest to consumers and synonymous with losses for the company which will thus be able to allocate time and resources to the next product . If you liked this article and you are passionate about digital marketing, our blog awaits you with lots of other content.