The product life cycle involves four phases in the life span of most items brought to market to be sold. These are the introduction, growth, maturity, and decline stages. Each of these presents unique opportunities and distinctively different challenges and issues for marketers today. These are the exact same principles that apply to the strategy in 7 figure cycle review. Looking at examples in each phase, is helpful, to have a better grasp on the life cycles process.
Examples of The Introduction Phase
Firms end up making one of two main choices in how to market their products in this phase. They might opt for higher prices in an effort to recover their upfront costs for producing and manufacturing the product in question. Cell phone manufacturers are a classic example of this approach. They often come to the market with exciting and highly desirable new technologies. It allows them to set prices which are anywhere from 10 percent to 20 percent greater than those of the higher-end cellphone competitors.
Examples of The Growth Phase
In the growth phase, companies seek to maintain their item pricing so that they can optimize their product earnings. They are typically able to boost their distribution in this financially important phase. A good example is a cereal manufacturing firm. It created a new organic cereal which stores begin to distribute throughout the U.S..
Company marketing will boost advertising dollars in this phase. They can maximize sales and profits alike. Promotional efforts from the introductory stage pay off as more consumers become aware of the new organic cereal. The cereal maker realizes economies of scale as costs drop with increased sales of organic cereal.
Examples of The Maturity Phase
In the maturity phase, the original organic cereal producer discovers that the success of the product naturally increases competition from other cereal producers. As this organic cereal realized great success, the competitors and original cereal producer together finally reach product saturation in the consumer cereal market. Demand will cease to grow as it peaks. Inevitably the sales of organic cereals will begin their decline.
The various competitors will engage in price wars to boost their market share of the declining market. To stay competitive, cereal makers will come up with variations on the cereal flavor or ingredients to successfully differentiate their cereal from the others. The original organic cereal maker may improve customer service by offering free trials in an effort to secure their position as market leader in this niche market. Their superior customer service captures more market share through greater sales. Yet by the end of the maturity phase, sales will begin to steadily decline.
Examples of The Decline Phase
Finally decline sets in as demand for the organic cereal or new high technology cell phone diminishes. Newer cell phone technologies will woo away the customer base. The producers must choose either selling their cell phones at a greatly reduced price, maintaining the product as is, or discontinuing it and moving to new product launches. The cell phone maker that maintains its product might find additional sales through developing some new use for it. Alternatively, they might take the cell phone to an untapped international market to revive its prospects. This might be enough to extend the product’s useful shelf life further.