Whenever shopping for a product, consumers participate in a product’s life cycle, regardless of its stage.
The product life cycle (PLC) is a marketing concept that has had great success since it was launched. It is important to understand each stage in a product’s life cycle in order to make better informed decisions when it comes to strategic options. However, what in theory seems to be straightforward, in reality can be less obvious.
Besides PLC concept, there is also the market’s life cycle. This is also important to analyse since a product’s life cycle is related to its category’s life cycle.
What is the product life cycle?
The concept of product life cycle is the cycle every product goes through since its launch until its withdrawal of the market. The succession of stages a product goes through defines what marketing actions should be taken into consideration, according to each stage.
Why is the product life cycle important?
Managing the PLC properly can extend the product’s time on the market. This is why it is so important. Every stage of the PLC is connected to specific marketing strategies, allowing the product to remain on the market for longer. Besides that, it is useful to understand when a product needs to be revised or changed.
Product life cycle curve
Usually, the PLC is divided into 4 different stages and this is known as the classic product life cycle curve. However, it is relevant to discuss an extended product life cycle curve that accounts for 6 different stages.
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Development stage
Development stage occurs before a product is launched in the market. This includes product and market research in order to discover whether the launch is viable or not. At this stage companies make efforts to collect investors and develop product prototypes. The marketing strategy for the product life cycle should be planned at this stage.
This is when demand for a product is being created through consumer research, endorsements and buzz around a product. How long this stage takes depends on the product being launched and the market it is being launched in. It also depends on the level of innovation of the product, whether it responds to an urgent consumer necessity and if there is pressing competition for the product.
During this stage, marketing efforts should build brand and product awareness.
