- Strategic Decision-Making: This will enable businesses to make informed decisions in regard to marketing, pricing, and product development by pinpointing the specific stage of a product: introduction, growth, maturity, or decline. For instance, during the introduction phase, heavy marketing is required to propagate brand awareness, while in the maturity stage, focus might shift to cost reduction and retention strategies for customers.
- Market Planning and Risk Management: Business establishments can perceive the market trends and plan their strategies accordingly because of their clear conception of the PLC. These proactive measures can assist in reducing the risks involved during product launches and ensuring that the most promising features are exploited.
- Product Innovation and Development: PLC framework helps businesses pinpoint opportunities for product innovation and development. As the product approaches maturity, firms will be able to introduce new features or new product lines based on customer feedback and changes in the market in order to remain competitive.
- Resource Allocation and Optimization: The PLC helps businesses allocate resources efficiently. During the introduction stage, when sales are low, heavy investment might be required in marketing. As the product reaches maturity and sales stabilize, resources can be shifted towards research and development for the next generation of products.
- Customer Satisfaction and Retention: Resource Allocation and Optimization: Customer Enjoyment and Retention: Understanding the customer needs and preferences at each PLC stage enables businesses to tailor marketing message and product offering to the customer’s desire in a bid to, in most cases, retain the customer before the maturity stage where competition may be cut-throat.
Product Life Cycle (PLC) | Stages and Case Study of Apple
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