Nobody wants their company’s products to become obsolete and then reach the end of the product life cycle. It is crucial to understand the different stages of the international product life cycle so that you know how to make a much better decision related to business and marketing.
The product life cycle has some different stages. The cycle will start from development and will end in decline. All marketers and business owners will use the life cycle of the product to make essential strategies and decisions in packaging, product prices, and advertising budgets.
6 Stages of The Famous International Product Life Cycle
Even though there are 6 different stages in the product life cycle, the marketing industry only knows 4 main stages. Those stages start from introduction, followed by growth and maturity, and the final stage will be declined. But here are the 6 stages you better know.
1. Development
This stage is the research phase you should do before introducing the product to your target audience. At this stage, companies are going to bring in investors and develop their prototypes. Those companies will also test the effectiveness of their products and also strategize the product launch.
Usually, companies are willing to spend a lot of money at this stage. However, they don’t bring in any revenue since they don’t sell any products yet. The development phase may last for a very long time. It all depends on the product’s complexity, how new the product is, and the product competition.
2. Introduction
This stage will happen when the company starts launching products in the marketplace. At this stage, the marketing team is going to build product awareness. The team will also target potential customers.
Usually, when the product is introduced, the sales will still be very low and the demand will increase slowly. At this phase, the company’s marketers are going to focus on marketing campaigns and advertising. Marketers will also test distribution channels while building brand and product awareness.
3. Growth
The third stage of the international product life cycle is the growth stage where customers have accepted the product and they start buying the products. This means the profits and demand for the products are growing.
The growth stage will happen when the market for a product starts expanding and the competition also starts developing. Some potential competitors are going to see the success you experience and they want to taste it.
4. Maturity
The maturity stage will happen when the sales from the rapid growth period start to level off. At this stage, the company will start reducing the prices so that they will stay competitive amongst the competition that is also growing. This phase is when the company starts to be more efficient.
It is also when the company starts learning from the mistakes it made in the previous two stages. Marketing campaigns usually will focus on differentiation instead of awareness. Companies will enhance product features and lower prices. Also, the distribution will be more intensive.
5. Saturation
The next international product life cycle stage is product saturation. During this stage, usually, competitors have taken over the market, and that’s why the company’s products experience a decline in sales.
Usually, this is when most customers are still using the product but many companies are competing. At this phase, you want the products to be the brand preference. This way, the products will not enter the next stage: the decline phase.
Focus on feature differentiation when the market becomes saturated. You can also focus on customer service, price, and brand awareness.
6. Decline
Finally, there is the decline stage which will be the end of the stage. If your products don’t become the ones everyone wants, those products are going to experience a decline. During the heightened competition, the sales will decrease and it will be very hard to overcome.
However, instead of discontinuing the product, it is much better to innovate or iterate on your products to make people want to use them again. For example, people used to buy CDs back then but now they prefer streaming their favorite songs. Know what your customers want and improvise.
To grow better and bigger, use the latest technology that is going to help you pass those stages of the international product life cycle. The Hitech Terminal Enterprise from SMS Broadcaster is going to help you build stronger brand awareness. You will get new customers and grow your business in a much better way.