Product life cycle is the process through which a product covers his journey throughout, from beginning to the end. It is completed with steps that includes
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 in the market and develops the product.
2. Introducing in Market: The next step is to introduce the product into the market. All is to be done is 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 on an upper level. This is the very important step in the life cycle of product, as all the other steps relies 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: Product has reached to its fate that is to declined. 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 of new product development. The product life cycle leads to formation of many new products. Just take an example of China. They introduced millions of new and cheap products all over the world-wide market only by considering the product life cycle into account.
It reminds about, “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. Same is the case in the marketing that 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 an account, people do watch others and top rated products and in an 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 prosper if there is a healthy competition between the marketing managers.
User awareness: Product life cycle helps the marketing managers to get an idea of what the user and public thinks. It helps the makers to make the products according to the demand of people and market.
Product life cycle helps to re-new the ideas through 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 balance in 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 repute of any organization.
The product life teaches us to maintain a balance between requirements and productions.
It is also 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 future. It is also called prediction and fate of any product.