What is a product life cycle analysis and management
Learn about product life cycle analysis and management.
A product life cycle management and analysis is a process businesses use to understand their products’ different stages.
I rolled out of a 2-year job with IBM. I landed my first product manager job with the railroad. On my first day, I was introduced to processes and pricing models for freight.
So when I saw rows and rows of 5 draw file cabinets with no database, you can guess what I did. We reduce pricing cycle times from 3-5 days to 5 minutes with the traffic manager on the phone.
Ever write a check (yes, people still write checks), and wonder what that machine is they are sending through? Well, we at SORICON invented it in Boulder, CO. That was my product to push out into the multilane stores, c-stores, and more…we were the Verifone of checks at the time.
Distributed computing and SaaS models in the PLM (product life management), another HP spin-out, I had to reposition and seek additional investor funding with a well-structured roadshow. It was secured. PTC later bought the company.
Adopt to Endure: Your Crucible Moment. Sustainable Revenue Models
I could go on, the point I’ve been involved with products and services for over 30 years. And it is a simple model. Add value, and always be helping.
This information can help with marketing decisions, ensuring the product is used to its fullest potential.
Many resources are available to help improve a product’s life cycle, like social media, customer service, surveys, focus groups, and competitive digital signals.
Businesses can drive revenue and profits by using these tools and understanding the different stages of the product life cycle.
Do you want to make your business more successful?
Product life cycle analysis is an important tool for businesses to understand. By knowing which stage of the product life cycle their product is in, businesses can make better decisions about their marketing strategies and ensure they make the most of their products.
Many resources are available to help improve the product life cycle, like the customer service department, social posts, surveys, focus groups, and competitive digital signals. With so much information at your fingertips, there’s no reason not to make your business thrive.
Learn more about how product life cycle analysis can benefit your business!
What is the product life cycle of a B2B firm?
The product life cycle of a B2B firm is similar to that of a consumer-focused company, but there are some key distinctions.
Products move through different stages as they age; businesses need to understand these stages to make the most of their products.
Here are the five stages of the product life cycle:
1. Introduction: This is when the product is first released to the market. The company is trying to generate interest and awareness among consumers.
2. Growth: The product is starting to catch on with consumers, and sales are increasing. The company is working to sustain this growth and increase its market share.
3. Maturity: The product has peaked in its sales and market share. Competition is fierce, and companies are trying to hold onto their customers.
4. Decline: Sales are dropping, and the product is losing popularity. This stage can be difficult for companies, but there’s still potential for a turnaround if they’re willing to make changes.
5. Retire/End of Life: The product is no longer being made or sold. This stage can come in many forms, depending on the product’s life cycle curve.
Products go through different stages as they age, and businesses need to understand them to make the most of their products.
By understanding the product life cycle, businesses can generate revenue and profits.
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What is the product life cycle of a B2C firm?
The product life cycle of a B2C firm is similar to that of a B2B firm, but there are some key distinctions.
Products move through different stages as they age; businesses need to understand these stages to make the most of their products.
5 steps for product life cycle analysis
1. Know your product: The first step is understanding your product clearly. What are its features? How does it differ from similar products on the market? What are its strengths and weaknesses? This information will be crucial as you move through the different stages of the product life cycle.
2. Understand your market: It’s also important to understand your target market well. Who are your customers? What do they want and need? What are their buying habits? This information will help you decide how to market and sell your product.
3. Monitor sales: Keep an eye on your product’s sales figures. This will help you understand how well the product is doing in the market and identify any changes that need to be made.
4. Evaluate your marketing efforts: Take a close look at your marketing campaigns and evaluate their effectiveness. Are you reaching your target market? Are customers responding to your messages? If not, it may be time to change your marketing strategy.
5. Make adjustments: As the product life cycle progresses, you’ll need to adjust your plans. This could include your marketing strategy, sales approach, or product changes. It’s important to be flexible and willing to make changes as needed.
By understanding the product life cycle maangement, businesses can generate revenue and profits.
Click this article to learn more about how product life cycle analysis can benefit your business!
Major pain points of managing the product life cycle
The major pain points of managing the product life cycle are understanding when to make changes, gathering customer feedback, and dealing with competition.
If you make changes too early, you may alienate customers. If you make changes too late, you may miss out on potential profits. It’s a delicate balancing act that requires a lot of finesse.
Another challenge businesses face gathering customer feedback. This feedback can improve the product life cycle, but it can be difficult to get accurate customer information. You must be sure you’re getting feedback from the right people and interpreting it correctly.
Finally, businesses have to deal with competition. With so much online information, it can be difficult to stand out from the crowd. You must be sure that your product is differentiated from the competition and that you use the best marketing techniques possible.
These are just a few major pain points of managing the product life cycle. By understanding these pain points, you can put yourself in a better position to succeed.
What is product life cycle analysis?
Product life cycle analysis is the process of examining a product’s lifespan and understanding the different stages it goes through.
This information can be used to make better decisions about marketing and selling the product.
The different stages of the product life cycle and what that means for businesses
When it comes to their products, businesses need to understand the product life cycle. This is the cycle that products go through from when they’re first created to when they’re discontinued.
The different stages of the product life cycle can greatly impact businesses, so it’s important to know what they are.
The first stage of the product life cycle is development. Businesses need to decide if there is a market for the product and how it will differ from what’s already available. They also need to determine what the product will cost and how it will be manufactured.
The next stage is launch. Businesses must ensure they have a good marketing strategy, so people know about the product. They also need to make sure ensure enough stock available and meet demand.
The third stage is growth. Businesses need to continue their marketing efforts and ensure that they have enough stock available. They may also want to start thinking about introducing new versions of the product.
The fourth stage is maturity. In this stage, the product is no longer new, and sales start to level off. Businesses need to maintain their market share and ensure they’re still profitable. They may also want to introduce new products.
The fifth and final stage is decline. Businesses need to reduce their costs to make a profit. They may also want to discontinue the product.
Product life cycle analysis is important for businesses to understand when it comes to their products. Different techniques can be used to conduct a product life cycle analysis. Knowing which stage of the cycle your product is currently in is important. Different techniques can be used to conduct a product life cycle analysis.
By understanding the product life cycle, businesses can make better decisions about their marketing strategies and ensure they make the most of their products. Resources to improve the product life cycle, like the customer service department, social posts, surveys, focus groups, and competitive digital signals, improve the product life cycle.
A product life cycle analysis will help drive revenue and profits.
Most marketing executives are familiar with the product life cycle and product life cycle analysis.
Evaluating the performance of the product portfolio provides management with information to guide product strategies for new products, product modifications, and product elimination.
The strategic analysis of existing products requires tracking the performance of the products in the portfolio.
Marketing management must establish parameters and levels of performance for gauging product performance. An information system is needed for the demand and cost interrelationships among products.
A system like a marketing analytics platform measures a particular product’s performance. These systems can help evaluate your products. These systems are essential for both B2B and B2C companies.
The purpose of the tracking system is to maintain a product review process that will spot problem products. Marketing management can use analytic reports to help select a strategy for eliminating the problem. Corrective actions may include adding new products, cost reduction, product Improvement, marketing strategy changes, or product elimination.
I used several methods to perform a strategic analysis of our product portfolio. Product life cycle, portfolio, and positioning analysis will be discussed. It will explain the information used to analyze product performance and identify product strategy options.
Product Life Cycle
You will understand the product life cycle if you’ve read some of my posts before. However, let me explain it again. So, before we get too far into the discussion, you must understand the product life cycle.
Products, like people, move through life cycles. The product type or a variant of interest should correspond to a defined market need. Life cycle analysis can also focus on a market segment within a product market.
Sales began when the product was introduced and increased over time. Profits lag behind sales since heavy introductory expenses often exceed sales during the initial stage. Industry sales and profits decline after the product reaches maturity.
The product life cycle portrays the sales history of a specific product by following an S-shaped curve. The curve is typically divided into four stages: introduction, growth, maturity, and decline.
- Introduction Stage. Has slow sales growth as the product is introduced in the market. Early adopters are the first to buy. Profits are inconsistent in this stage.
- Growth Stage. This stage shows rapid market acceptance and profit improvement.
- Maturity Stage. The period of a slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits stabilize or decline because of increased marketing outlays to defend the product against the competition.
- Decline Stage. The period when sales show a downward trend and profits decline.
Product Life Cycle Analysis
The product life cycle has several major stages: introduction, growth, maturity, and decline.
The important strategic issue in product life cycle analysis include:
- Determining the length and rate of change of the product lifecycle.
- Identify the current product life stage and select the product strategy corresponding to that stage.
- Anticipating strategic threats and finding opportunities for changing and extending the product life cycle.
Rate of Change
The length of product life cycles is becoming shorter for many products. Microbrands are popping up daily like Casper Mattresses and Kylie Cosmetics, which have become overnight successes. There are, of course, wide variations in the length of the product life cycle stages for particular products.
Determining the rate of change in the product life cycle is important. Marketing management must adjust its marketing strategy to correspond to the changing conditions.
For example, the product life cycle for computers is relatively short. In a few years, the product moved from its introduction into the growth stage, and now it is moving toward maturity.
Fast movement through the product life cycle also necessitates altering the cycle and/or introducing new products. In short, a rapidly changing product life cycle requires modifying marketing strategies in a dynamic environment.
Stages and Strategy Identification
Now we focus on the product life cycle (PLC). The product life cycle portrays distinct stages in the sales history of a product. Corresponding to these stages are different opportunities and problems concerning marketing strategy and profit potential. Companies can formulate better marketing plans by identifying the stage that a product is in or may be headed toward.
The product life cycle stage of the product has implications regarding all aspects of targeting and positioning. Analyzing strategies for different situations, including the product life cycle stage, is critical.
The product life cycle stage of the product has implications regarding all aspects of targeting and positioning. Each stage can define strategy zones as the product moves through the PLC.
The strategy guidelines indicate the changing focus of marketing strategy over the product life cycle.
It is not always clear where our product is positioned in its product life cycle at a specific time. Analysis of the growth rate, sales trends, time since introduction, the intensity of competition, pricing strategies, and end competitor entry or exit information is useful in positioning analysis.
Identifying when the product has moved from growth to maturity is more difficult than determining other stage positions. Also important is the analysis of industry structure and competition in estimating when a product has reached maturity.
Product Life Cycle Planning Model
Predicting the sales revenue of a product and identifying the factors that influence the shape and amplitude of the volume projections are important. A product life cycle model is used for short and long-range planning for B2B and B2C businesses.
The model was designed for evaluating new product development projects. Estimating the timing and magnitude of turning points of a successful product introduction is perfect for this model. This modeling approach also appears useful for predicting an existing product’s life cycle.
The product life cycle model determines sales volume by combining original purchases and replacement estimates. Original purchases are forecasted using three predictor variables:
- Consumer need
- Number of competitors
- Amount of advertising and promotional effort
- Social activity
- Digital competitive signals
Replacement estimates are a function of the products:
- Useful life, the percent of owners who will replace it
- The trade-off of repair versus replacement
- Or the level of the initial purchases.
The validity test of the model predictions against actual product life cycles indicates a close correspondence between product life cycle shapes.
Product Portfolio Analysis
The strategic analysis of the product portfolio determines if each product is measuring up to marketing management’s minimum performance criteria.
What is product life cycle management? Product life cycle management (PLCM) is a process companies use to manage their products throughout their life cycles.
This includes anticipating new product attributes that the market wants, trying to find new customer value benefits, and developing creative marketing strategies. PLCM also involves monitoring product performance and making changes to meet customer needs and preferences.
An assessment of the strengths and weaknesses of the product relative to other products in the portfolio is also reviewed. Comparative analysis of products can be done with the grid method.
Portfolio grids show the differences among products.
An analysis of performance factors may include the following:
- Sales fluctuations
- Profit contribution
- Barriers to entry
- The extent of capacity utilization
- The nature of technology
- Responsiveness of sales to price, promotional activities, service levels, and other influences
- Alternative production and process opportunities
- Environmental considerations
Several of these factors may be included in the product life cycle analysis. The analysis can also compare competing brands of a particular product.
This analysis may be useful when brands target different market segments. However, the market attractiveness dimensions of the grid will be constant across all brands targeting the market.
Perceptual Maps offer powerful analysis tools for assessing products. The map is developed by obtaining preference information on a set of competing brands or companies from a sample of buyers. Various product attributes are used, and the results are summarized n a two-dimensional preference map.
Product life cycle management software con in handy here.
Competitive mapping analysis offers useful guidelines for strategic product positioning. The analysis can relate buyer preferences to different brands and indicate possible brand repositioning options.
The new product opportunities may be identified by analyzing preference maps. Positioning studies can measure the impact of repositioning strategies.
Other Product Analysis Methods
Other product analysis methods include research studies that identify the relative importance of product selection criteria to buyers and rate brands against these criteria. These techniques are useful in indicating brand strengths and weaknesses.
Industry analysts (e.g., IDC and Gartner) and industry trade publications publish market share and other brand performance data. Product rating services such as those offered by Consumer Reports also provide useful evaluations of brands and products.
Online reviews can tell a lot about a product. Websites like G2Crowd and Capterra are great resources I use all the time.
Wrap Up on product life cycle management and analysis
Products and markets have life cycles that call for changing marketing strategies over time. Every new product follows a product life cycle. It passes through the stages of emergence, accelerating growth phase, declining growth, maturity, and decline.
Companies must try to anticipate new add product attributes that the market wants. Profits go to those who introduced new.
Customer value benefits from searching for new attributes based on empirical work, intuition, or needs hierarchy reasoning.
Successful marketing comes through creativity, visualizing the market’s evolutionary potential. And this is where product portfolio analysis can be used for the product life cycle.
General FAQs about product life cycle analysis
What are the different stages of the product life cycle?
The different stages of the product life cycle are as follows: (1) Emergence, (2) Accelerating growth, and (3) declining growth.
How can businesses use product life cycle analysis?
Businesses can use product life cycle analysis to understand when their products are in which stage of the cycle and make better decisions about their marketing strategies. They can also use it to identify new opportunities for their products.
What is perceptual mapping, and how can it be used?
Perceptual mapping is a technique that helps businesses understand how their customers view their products. It does this by mapping customer preferences onto different brands or companies. This can be useful for assessing different brands’ strengths and weaknesses and identifying possible brand repositioning options.
What is positioning analysis, and how can it be used?
Positioning analysis is a technique that helps businesses understand how their customers view their products. It does this by mapping customer preferences onto different brands or companies. This can be useful for assessing different brands’ strengths and weaknesses and identifying possible brand repositioning options.