Importance Of Product Life Cycle

The product life cycle “describes the stages a really new product idea goes through from beginning to end” (Perreault, Cannon, & McCarthy, 2009). It is important for marketers to be aware of the stages of the product life cycle in order to strategize accordingly. If marketers fail to adjust their marketing mix and marketing strategies to adhere to the life cycle stage of their product, they run the risk of failure. “The product life cycle has four very clearly defined stages, each with its own characteristics that mean different things for businesses that are trying to manage the life cycle of their particular products” ("Product Life Cycle Stages", 2016).
The four stages of the product life cycle include the introduction stage, the growth stage, the maturation stage, and finally, the decline stage. As implied by the name, the introduction stage …show more content…
Within this stage, marketers should attempt to differentiate their product from the competition in order to remain relevant; however, this can prove to be difficult for many firms. Some companies may lower their prices in efforts to maintain their competitive edge, but this reduction in price along with the reduction in sales can have a negative effect on profitability. during the maturation stage of the product cycle, the company “may be forced to ‘remarket’ the product, which may involve increasing product quality, or expanding outlays on advertising and sales promotion just to maintain market share” (Peter & Donnelly, 2013).
Decline is the final stage of the product life cycle. This is when the company will experience sharp falls in sales and profit as consumers opt to purchase more effective products. During this stage, companies are faced with a tough decision; they must deiced “whether to (1) drop the product, (2) alter the product, (3) seek new uses for the product, (4) seek new markets, or (5) continue with more of the same” (Peter & Donnelly,