Busn Essay

The Four Stages of the Product Life Cycle and Their Impact on Marketing Strategy

The four stages of the product life cycle are: Introduction State, Growth Stage, Maturity Stage and Decline Stage.

The introduction stage of the product life cycle is when word about the product is getting out and people are becoming aware of it. The quality of the product is a really big deal at this point. As a company you want build repeat business.

The growth stage is where the demand for the product is high; sales will increase in the growth stage. This is the time when as a company you would want to add variety to the product if possible in order to increase customers. You would also increase advertising at this point to gain additional business and repeat customers. More employees will need to be hired to meet demand.

The maturity stage is where the market becomes more saturated. It becomes more difficult to add customers. Some companies will add new features to their products to draw customers away from competitors. Companies may also try to find new uses for products or markets for their products to extend the lives of their products. Therefore, companies will usually stress their differences from competitors in their advertisements and promotions. Companies may also lower prices when more competitors enter the market. Some competitors will likely lower prices, so other companies will do likewise to avoid losing customers.

The Decline Stage is where products inevitably become outmoded or obsolete. Think of black and white tv for an example. During this stage, companies may make final attempts to differentiate their products or find new markets for them. However, some companies will introduce new products, especially if technology is changing. Their existing products may be sold or discontinued.