Product Life Cycle
A graphic visualisation of the ‘life cycle’ of a product that shows the relationship between sales and time. It can also be drawn to compare time, costs and revenue etc.
The product life cycle is an important concept when developing a marketing strategy, each stage should suggest the emphasis of marketing effort.
Raise awareness through advertising
Sell into supply chain
Target early adopters
Product might only offer basic features
Still need to generate high levels of awareness – possible develop Brand
Ensure high levels of coverage in supply chain – build relationships to create barriers
Consider reduced price to grow share
Develop product range to offer more features
Prior to maturity there might be a period of shake-out Do you stop in the market or move to another?
Protect market share
Rationalise product range
Remaining customer base migth be less price sensitive
The life cycle stage is an important characteristic to consider when developing marketing strategies. Tools such as the Boston Consulting Group Matrix rely on an estimation of the stage in the life cycle that a product or strategic business unit (SBU) has reached.