Product life cycle mature

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Products have similar lives to living beings. They are born someday and they come to an end someday. Product life cycle is the set of stages a product goes through during its lifetime.

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The theory of a product life cycle was first introduced in the s to explain the expected life cycle of a typical product from design to obsolescence, a period divided into the phases of product introduction, product growth, maturity, and decline. The goal of managing a product's life cycle is to maximize its value and profitability at each stage. Life cycle is primarily associated with marketing theory.

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A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix. The product revenue and profits can be plotted as a function of the life-cycle stages as shown in the graph below:.

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All products and services have a certain life span which is measured by the chronological history of sales from the launch of the product until its withdrawal from the market. For the development of effective marketing strategiesan understanding of the different characteristics of the product life cycle stages is absolutely crucial. Based on this understanding, marketing implications can be derived.

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Posts Comments. After the Introduction and Growth stages, a product passes into the Maturity stage. The third of the product life cycle stages can be quite a challenging time for manufacturers.

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Any Business is constantly seeking ways to grow future cash flows by maximizing revenue from the sale of products and services. Cash Flow allows a company to maintain viability, invest in new product development and improve its workforce; all in an effort to acquire additional market share and become a leader in its respective industry. A consistent and sustainable cash flow revenue stream from product sales is key to any long-term investment, and the best way to attain a stable revenue stream is a Cash Cow product, leading products that command a large market share in mature markets.

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Every product goes through the various life cycle phases of introduction, growth, maturity and decline. It proceeds through multiple phases, involves many professional disciplines and requires a multitude of skills, tools and processes. The product life cycle begins with the introduction stage see.

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At this point in your product's life cycleyou should be putting your efforts into:. This should be a period of rapid growth in both sales and profits for your product or service. Your profits should rise through an increase in output and more competitive pricing. If your profits are still low, consider reducing the price of the product or service to increase the volume of sales.

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Most alert and thoughtful senior marketing executives are by now familiar with the concept of the product life cycle. Even a handful of uniquely cosmopolitan and up-to-date corporate presidents have familiarized themselves with this tantalizing concept. Yet a recent survey I took of such executives found none who used the concept in any strategic way […].

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Access insights and guidance from our Wall Street pros. Find the product that's right for you. When a product enters the market, often unbeknownst to the consumer, it has a life cycle that carries it from being new and useful to eventually being retired out of circulation in the market.

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