• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Business
  • Commerce
  • Management
  • Insurance
  • Banking Finance
  • Marketing & Advertising
  • Tech

Business Finance Articles

Your First Financial Choice....

  • Education
  • Career
  • Investment & Money
  • Accounting & Taxation
  • Transportation & Logistics
  • Industries

How Product Life Cycle Helps Businesses

Last Updated on July 29, 2021 By Asad Naeem Leave a Comment

The product life cycle is the process through which a product covers its journey throughout, from beginning to end. It is completed with steps that include

1. Idea, Research, and Development: The very first stage of the product life cycle is that a person gets an idea about any product, does research on anything, and creates a team. He checks the impact of that product on the market and develops the product.

2. Introducing in Market: The next step is to introduce the product into the market. All that is to be done are advertisements, brochures, public dealing, and giving samples to the market.

3. Growth: The product then starts its growth. Constant hard work is required to take that product to an upper level. This is a very important step in the life cycle of a product, as all the other steps rely on this one.

4. Maturity: The product starts getting its maturity in the market. Now, it has many competitors. The sales are the highest on this point. Gradually, the market becomes saturated and sales start to decline.

5. Decline: The product has reached its fate that is to decline. The life cycle is now ended. This all process is very important in the following ways.

It supports Business decision making. The life cycle of any product helps the new beginners in marketing and entrepreneurs to observe the scope of a thing in market so they can start their own business, taking forward their ideas, and introduce any product into the market.

It brings the need for new product development. The product life cycle leads to the formation of many new products. Just take the example of China. They introduced millions of new and cheap products all over the worldwide market only by considering the product life cycle into account.

It reminds me of, “Survival of the Fittest. “Survival of the fittest” is a phrase that originated from Darwinian evolutionary theory as a way of describing the mechanism of natural selection.

According to this, anything having better combinations and makeup would survive in the environment. The same is the case in the marketing that the product with better usage would be the fittest in the market

Life Cycle of Product also helps us to Understand

Competition in the Market: Keeping the life cycle into account, people do watch others and top-rated products and in comparison, running in a race of “DOING BETTER” many new products are made by different people, in this way, the user comes to know about many products.

The market becomes better and prospers if there is healthy competition between the marketing managers.

User awareness: The product life cycle helps the marketing managers to get an idea of what the user and public think. It helps the makers to make the products according to the demand of people and the market.

 Product life cycle helps to re-new the ideas through the opinion of users.

Profit/loss regulations: The profit and loss regulations tell us that, if a product giving a good profit, it means it has a very high demand in the market and so with the case of low that now it is near to be declined.

It is also useful because

It balances the trade. We can get to know about the balancing in the trade which means not too many products should be made that overflow a market with no consumers, neither too low production of products which causes the harm to the repute of any organization.

The product life teaches us to maintain a balance between requirements and productions.

It is also a Forecasting tool. This lifecycle forecasts the future and stability of any product in a market. This gives rise to the prevention of any problem to be faced in the future.  It is also called the prediction and fate of any product.

Asad Naeem

Asad Naeem is a poet, content writer and social activist. He is a medical student. He knows how to make everyone well aware of social topics that are needed in out society. Find him on Facebook

Filed Under: Business

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

person-using-laptop
Microplastics Harmful Water bottle
Business Retailing
What You Ought To Know About the Insurance Process
Forklift and Pallet Truck
Woman getting a signature of man on documents
Man write something on the page
investing mistake
Business-Accounting
Translation Services
PTO
hands-on-laptop
Mortgage employee
leaflet
Payroll Frauds
doctor
small business
man near storage units
people are smiling looking at papers
health insurance papers and sethoscope with pulse guage
girl stand in lotus pose
business card
mini house on wooden table and business man holding pen
animated person smiling and payback concept
B2C write on wooden blocks

Footer

  • About US
  • Contact Us
  • Blog
  • Comment Policy
  • Terms & Conditions
  • Privacy Rights
  • Privacy Policy
  • Follow Us On
  • – Google News
  • – Facebook
  • Entrepreneur Skills
  • Business Cycle
  • Business Ideas
  • Speculator
  • Be Wealthy
  • Psychology in HRM
  • HRM in Business
  • Businessman Qualities
  • Salespeople Types
  • Health & Business
  • Business Success Rules
  • Stress At Work
Copyright © 2018-2022 BFA