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Sunday, August 8, 2010

Innovation to Profits - Product Life Cycle (Part 2 of 4)

To continue to move a business forward a steady stream of innovation is needed to change with demands from the consumer. A new product goes through a sequence called the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix. The four stages of the product life cycle are:

  • Introduction Stage
  • Growth Stage
  • Maturity Stage
  • Decline Stage
The Growth Stage the company seeks to build a brand preference and increase market share.
 
The following is typical at this stage:
  • Product quality is maintained and additional features added.
  • Pricing is maintained as the firm enjoys increasing demand.
  • Distribution channels are added as demand increases and customers accept product.
  • Promotion is aimed at a broader audience.
“Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion.” - Jack Welch

Additional Readings:
Innovation to Profits - Product Life Cycle (Part 1 of 4)