The above image is a demonstration of the stages a product goes through during its lifetime. Economics and MBA students probably recognize this, although the progression and decline curve rarely translates to reality in the way it’s portrayed.
See that there are 4 major phases that a business cycle goes through:-
- The business starts its operations and sees little growth.
- The product blows up and starts experiencing sharp growth.
- The rate of growth becomes stagnant, which is sustainable.
- Product sales start to decline gradually.
These phases are business paradigms that call for different measures and strategies at different times during its life cycle. The evolution of marketing strategies in respect to these phases is termed as Product Life Cycle Management.
But Why Look at Product Marketing through the Lens of Life Cycle?
Product Life Cycle Management is important mainly because it helps you plan and manage all aspects of your product, which further helps you derive your product marketing strategies. And that mainly does 2 things:-
- Reduces Costs
When you understand what phase your business is in, you will not bother spending funds to improve segments where there is no scope of improvement.
- Maximizes Profits
It’s easy to maximize your profits when you know where to allocate your funds. Knowing what phase your business is in will bring awareness to those areas of improvement.
These are the 2 things that businesses mainly care about, and when you understand which phase of the…