Market research is an essential part of any marketing campaign. A popular research method to use is the Product Life Cycle. It consists of 4 stages- introduction, growth, maturity, and decline.
Introduction Stage
The introductory stage of a product typically involves a new item. Because it’s new, it often experiences slow growth at first. This happens because the market needs time to understand and adopt it. During this phase, all you can do is wait and be patient. Allow the market to determine if it will be successful or ignored. It’s crucial not to worry about the slow progress; this is normal.
The Growth Stage
Growth comes after the product is introduced and usually indicates that the market is showing interest and sales are starting to rise significantly. This is the stage where introducing a line extension makes sense. It can help expand the market and boost market share. Most of your sales will occur during the growth stage.
The Maturity Stage
This is the third stage of the Product Life Cycle and is often the longest stage. The increased sales you get during the growth stage are not infinite and are bound to plateau. The maturity stage is where your sales figure reaches their ceiling and profit margins begin to narrow. This by no means translates to dumping the product. In this stage price reduction or discount can keep the momentum going. Also now is an ideal time to begin considering new products to launch in the near to distant future.
The Decline Stage
The final stage in the cycle, the decline stage is usually the most unpleasant. This is when you witness sales decreasing and customers moving on to other products. Some people choose to run the product to the ground, picking up as many sales until it becomes unprofitable. Others use this opportune time to introduce their new products they began drafting in the maturity stage. Then the cycle starts all over again with the introduction of a new product.