In the early 2000s, DVDs were the primary way to watch videos. Netflix streaming launched in 2007, and the DVD player is now a technological antique.
Products, much like humans, live on borrowed time. From the moment they launch, they’re on a journey towards decline.
How this journey plays out is what marketers try to predict by using the product lifecycle as a model.
According to the classic sales curve, products go through four stages:
- Development and introduction;
During introduction and growth, products rise along the curve as sales grow before reaching the peak of maturity and its eventual decline.
Demystifying product life cycle marketing
Your marketing strategy should adapt to each stage of your product life cycle. If it stayed the same, you’d miss out on opportunities to reach customers as your product matures.
Product life cycle marketing aligns marketing efforts with the life cycle stage of your product.
The product life cycle above is a roadmap for your product. Developed by German economist Theodore Levitt, it provides a view of how the product progresses from introduction to launch to eventual decline.
The life cycle makes it easier to visualize your product’s stage and adapt your marketing strategy as you unlock new distribution channels and marketing assets. Adaptation is the difference between accelerating the curve and becoming obsolete.
For example, focus on building awareness and generating demand if your product is in the introduction phase. If you’re in the maturity phase, leverage your brand equity to lure customers away from the competition
While this curve makes the product life cycle easy to illustrate, it rarely translates to reality.
Your product’s life cycle will be unlike previous El-Salvador Phone Number iterations or rival products. Which is why, as Derek Gleason points out:
“The goal of product lifecycle marketing is not to match the curve but to outline what may work best now and plan for the future.”
Leverage previous product life cycles to gain a broad understanding of how your product fits into the life cycles of products in its class. This will help you spot early signs of a pending transition to a new stage and avoid pitfalls (e.g., waiting too long to get out of the introduction stage).
Hitting the ground running: Product development & market introduction
The development stage and introduction stage are rarely profitable. Even Facebook didn’t net positive until year three. New products are unlikely to be their most optimized selves. Development and promotion costs will also outweigh sales. Best database provider | Buy Mobile Database
Your goal is to progress from introduction to growth as quickly as possible to start turning a profit.
Your marketing objectives for the introduction stage of the product life cycle are to:
- Get internal buy-in;
- Generate product awareness.
People must start discovering your product, why it exists, and why they should buy it. Your teams must be able to communicate this messaging.