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.