How to Create a Product Life Cycle
All products and services go through what is called a product life cycle. The life cycle of a product is the straightforward. There is an initial introduction phase, followed by the growth and the maturity stages. The final stage of the cycle is the decline stage. However, the decline stage does not necessarily mark the end of the product. Products can go through all stages more than once. Understanding how to create a product life cycle will aid in its longevity.
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Instructions
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Begin the introduction phase by introducing the product to the consumer. Identify the target market specifically. Be sure there is a perceived need or demand for the product. Use targeted marketing and advertising to make your target audience aware of the products benefits and availability. Run promotions to get consumers to try the product.
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Monitor the competition as the product is being introduced. Look for signs the new product's presence is having an impact on the competition. Watch the competition for adjustments.
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Continue product promotion directed at the target market audience. When there is an increase in the sales and profits, the product is moving into the growth phase. Continue to distinguish the product from the competition.
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Focus on product benefits, once the point of market saturation is met. At this stage, the product is now at the maturity phase. Prices can be lowered and more promotions can be implemented to maintain market share.
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Determine if there is a still need for the product through performing consumer surveys, market analysis and rend watches. If sales are falling and the findings of market research indicate there is less interest, the product has moved into decline stages.
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Find new uses for the product to get back to the earlier stages of the life cycle without creating a new product. Look for shifts in the trends and make the necessary adjustments in the product. Create a new demand with a new target market. Use new technologies to communicate the need and benefits of the product.
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Monitor the sales and the consumer response to the product to determine what phase the product is in.
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Tips & Warnings
Listen to the consumer needs before developing the product. Monitor all phases of the life cycle carefully to determine if you need to push the product more through a particular phase.
Products that run through a cycle quickly and never go back into earlier phases can be fads.
