The stages of the product life cycle
Introduction stage: ready, set, launch
Theodore Levitt’s article identifies the initial stage of the product life cycle as the Development Stage. In that incubation stage, the product is conceptualized and built. Since marketers focus on promoting existing products, we will start with the Introduction Stage – also known as the Product Launch – when the marketing team reveals the product to the world.
Preparing for a product launch is a great time to build awareness for your company and its brand identity. Focus on a couple of core benefits that the company and your new product provide and start creating content that highlights your expertise. In the pre-launch phase, work with the Product Team to gather positive feedback from customers who have tested the product and see if they will provide testimonials. You may consider providing samples or free trials to influential members of your target audience.
Upon launching the product, the marketing team needs to focus on creating demand and driving brand awareness even higher. Education is key. Using a combination of in-bound marketing, content marketing, PR and advertising will be essential for ensuring that your target customer knows about your product, its capabilities and why your offering is the best option.
Action items for marketers:
Growth stage: life after launch
You’ve successfully launched your product and demand is steadily rising. Welcome to the Growth Stage. Marketing strategies in this stage aim to increase profits.
As sales increase, competitors will start to take notice. This is the time for marketers to start to differentiate the product from rivals and show customers why they should choose your product over developing competitors. Marketers can conduct a competitive analysis and identify opportunities to illustrate product superiority.
Meanwhile, the product team will likely begin adding more features and you’ll want to promote those as well.
Action items for marketers:
Maturity stage: becoming the brand of choice
After sales peak in the Growth Stage, they will begin to level off in the Maturity Stage. This part of the product life cycle is often the longest stage for most products. Your market will be saturated and you will need to shift your marketing strategy from a mix of awareness and differentiation to more heavily focus on differentiation. The goal is to win over your competitor's customers, convert non-users and become a brand of choice in the market.
In the Maturity Stage, marketing campaigns should point out your superior product features. It may be tempting to sit back and enjoy the steady sales, but now is the time for marketing and product teams to work together to improve the product and let consumers know how it’s continuing to get better.
This is also a great time for marketing teams to take a second look at product messaging across all your touch points (from sales materials to the web site) and analyze which messages resonate with specific customer segments. Then, you can use that information to streamline existing materials and even experiment with creating demand in new markets.
Action items for marketers:
Decline stage: avoid crisis with innovation
If your product is experiencing a decrease in sales and profits, you have reached the Decline Stage. There can be many reasons for a decline: changes in consumer preferences, technological advances, or too many alternatives in the market. Ideally, companies can avoid the Decline Stage by modifying their product in the Maturity Stage. However, if you find your product in the Decline Stage, marketers can work closely with the product team to find creative and innovative ways to overcome a slump in sales.
In the Decline Stage, the market has become saturated, so you’ll need to focus on differentiating specific features, expanding brand awareness with new advertising strategies, and highlighting customer service. Competition is highest at this stage, so it’s critical to leave no doubt regarding the superiority of your product. This is also a good time to expand into international markets.
On the product team, companies can take a hard look at how to pivot the product by expanding its capabilities or finding a new use case. Larger companies usually have several products that are at different stages in the product life cycle. This enables them to monitor how products are performing at each stage and allocate appropriate resources.