What is a Product Lifecycle?
Product Lifecycle Definition
Product lifecycle refers to the stages a new product goes through from concept through end of life. There are four stages in the product lifecycle including the introduction of the product, growth of the product, maturity of the product, and the decline in use or sales.
The actual length, or elapsed time, of the product lifecycle, varies based on product type, industry, competition, consumer demand, and other factors (e.g., the quality of a product).
Product lifecycle management (PLM) solutions help manage the entire product development and introduction process by providing a system to create, manage, review, approve, release, inactivate, and obsolete products.
All products have lifecycles as they go from cradle to grave. Companies will determine the best way to market products based on where they fall in the lifecycle. During the introduction stage, marketing campaigns tend to focus on consumer awareness. In the growth stage, companies will need to figure out how to meet increased consumer demand. However, during the maturity stage, which is the most profitable stage, products costs are at their lowest point. Finally, during the decline stage, companies may start to look towards updated or new solutions to introduce to the marketplace.
FAQs
How many stages are there in the product lifecycle?
There are four (4) stages in the product lifecycle. They are introduction, growth, maturity, and decline. Some sources may state additional stages (e.g., development), but any additional stages would fall within the existing four major stages.
Why is the product lifecycle important?
The product lifecycle is important because it helps offer guidance for developing optimal strategies to use during each stage to promote the success of a product in the marketplace.
Source: interaction-design.org
What is product lifecycle strategy?
Determining the best way to market or sell your products varies as the new products are introduced to the market. For example, as you introduce a new product to market, you may adjust your strategy based on whether or not you are first to market or trying to beat an existing company’s product.