There are many houses corporate governance always wondered about the influence of Product Lifecycle business and business strategies. For large businesses, good product lifecycle management is a path to success. The following post by Johnson's Blog will provide administrators with more information on this issue.
What is the product life cycle?
In marketing, the product life cycle is the process of a product, from the moment the product is conceived until the product is removed from the market.
Enterprise management will be able to manage that product based on the life cycle of the product. A product will not necessarily have full stages, but the life cycle can be extended to continue to grow in the long term such as milk, consumer goods, etc.
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How many stages are there in the product life cycle?
Marketers in the business if they can firmly grasp and stick to the product life cycle, it will be able to build very good development strategies. Product life cycle stage will usually include 4 stages:
Product introduction stage
The product launch stage is the first stage when the product is introduced to the market. This stage will be done after a long process of researching, building, developing and perfecting the product of an enterprise. At this stage, businesses will need to spend more money on marketing, product advertising and brand promotion.
Features of the introductory phase:
- The new business will have very few customers and the number of products sold is still low, leading to low profit or loss.
- Since it is a new product, there will be little or no competition.
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Product growth stage
After bringing the product to market, by having the marketing strategy to expand trademark, the product will be known by more people. This is a sign that the product has entered the development stage.
In this stage, customers will know more about the product and the business. Revenue will also gradually become more stable and the costs that businesses need to spend will also be reduced.
Features of the growth phase:
- The business has a rapidly increasing number of products sold.
- The level of competition in the market also began to increase.
- The business began to be profitable, even highly profitable.
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Product maturity stage
In the mature stage, it means that the product has created a foothold in the market and in the hearts of customers. According to the product life cycle assessment, this is the most stable stage of the product because the cost will be reduced to the lowest while the selling price will remain stable. Although the number of customers is not as many as before, it is more stable and long-lasting.
Features of the adult stage:
- Market competition becomes very strong.
- There are similar competitive products.
- The volume of products sold did not grow but remained stable.
- The profit rate of the business will decrease and receive a lower profit.
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Product recession period
This is the final stage, which is also the stage that will decide whether the product life cycle will be continued or ended. At this stage, the number competitor will be pushed to the highest level, forcing businesses to spend more investment costs.
The price of the product on the market will also be reduced to stimulate the demand of buyers. Revenue from products that are in this phase will also decrease significantly.
If businesses do not have the right research and development strategies, the product life cycle may end here. And vice versa, the product will be able to prosper again if it is built and promoted… properly.
Some product characteristics during this downturn:
- Sales began to decline due to competitor much.
- The number of customers began to decrease and only loyal customers remained.
- Profits plummeted back to their lifetime lows.
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Through the above article, we have found out with you Product Lifecycle What is and with you analyze each stage in the life cycle of the product. We hope that the information we have just shared will give you more understanding on this issue. If you have any questions regarding corporate governance, please contact us Johnson's Blog to read interesting and useful articles.
Johnson Vu – Deputy General Director of Viindoo Technology Joint Stock Company
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