The Life Cycle of a Product
Posted by Nathan Sloan in Business 101
If you are an affiliate marketer or just an owner of a business then this will be a very valuable and enlightening post for you.
Knowing the product life cycle is essential for all business owners as it is directly effects your bottom line. In this post we will be looking at the 5 stages of the product life cycle so that you can then make sure you get the maximum amount of profit from the products you promote.
For affiliate marketers it is priceless knowledge, as you want to promote products that cater to a big market and to get in and our early. For business owners planning ahead will make sure you always stay ahead of the competition.
The 5 Step Product Life Cycle
1. Development
The first stage is the development stage. This stage begins after you have looked at the current market and found a gap or something that is missing that the current products do not cater for. It can be a better version or a new innovation. Once you know the position the product will take you then move in to development. There is no profit at this point only costs.
2. Introduction
The introduction stage is exactly what it says. It is the process of bringing the product to the market place. Awareness is very low and it will be people who already know, like and trust you that will be first to buy. If you know the product will be a big success then it can be a good idea to plan a big marketing campaign.
3. Growth
The growth stage is where the market is now aware of the product. There will be reviews from customers, buzz and if the product is excellent it will begin to spread very quickly through word of mouth. The very best products will be so good that people will naturally tell their friends about it.
4. Maturity
Maturity is the last stage before the product will begin to decline. There is no real time limit to when this happens. It all depends on the market, other competing businesses and many other micro factors. The majority of profit is made in this stage. As an affiliate and business owner it would be wise you to start planning your exit strategy before the decline.
5. Decline
Unfortunately all products do not last forever. It is only a matter of time until the product will have matured and begin to decline. New innovations come to the marketplace so be sure to have your plan for the next stage in place.
By being aware of and planning for the product life cycle you make sure that you maximize your profit from the products that you sell. You can also put a plan in place for what happens after the maturity stage so you can continue to profit in to the future.
Nathan Sloan
