How to manage the product lifecycle

According to T. Levitt's concept, all goods and services pass through several stages of development, from introduction to sales decline. Each stage has its own characteristics that must be taken into account when shaping a marketing strategy. If this is not done, product promotion will become less effective, and the growth of popularity will slow down or stop earlier than it should. So, how to manage the product lifecycle, so they can stay on the crest of success for as long as possible?

When creating a product lifecycle management strategy, consider the specifics of each stage. The choice of methods for a specific product largely depends on long-term prospects, expected profit, the level of competition, and other nuances. Introduction. At this stage, you need actions that attract as much customer attention as possible and secure your niche.

Depending on the specifics of the product or service, the promotion strategy may be: - aimed at fast profit - important for a hype-driven product whose popularity rapidly climbs to a peak and then drops just as quickly; - aimed at rapid market capture - suitable for new products and services with low production cost, where target audience attention is won through active advertising combined with discounts; - designed for slow market penetration - this option suits a product that gradually builds its position and helps form long-term customer relationships. An example of implementing product lifecycle strategies at the introduction stage

1. Growth. To extend this stage of the product lifecycle, you can focus on the following directions:
2. Improving quality. These can be administrative or technological methods. For example, you can implement additional control systems, invest in more modern equipment, or order production automation. In services, digitalization is a major advantage because it simplifies internal processes and improves service quality.
3. Changes to the product’s properties.

1. This may include developing new versions, modernizing old ones, redesigning, and much more. For example, to extend the product lifecycle of smartphones and mobile gadgets, manufacturers can update the software, while for food products they can use new, sturdier, and brighter packaging.
2. Price optimization measures. These include launching additional services, promotions, introducing a new bonus system, and gifts for first-time or loyal customers.
3. Non-price techniques for stimulating demand.

This includes a wide range of tools, from gamification in the form of giveaways or quests to publishing helpful content, such as instructions or tips that may come in handy when using the product. Many companies use several approaches at once. This is especially important if the product or service has only recently entered the market, and the business owner needs to understand which tools to emphasize to drive greater demand. Important!

At this same stage, it is possible to enter new niches, expand sales, and begin developing international markets, for example through exports or franchising. This matters primarily for a product with high sales volume: working in this direction involves additional costs, which is not cost-effective if the entrepreneur has not yet reached the expected profit level. Maturity At the stage when sales volume has peaked, the main task in PLC management is to keep attracting new customers and not lose existing ones.

The strategy must be differentiated across these two objectives. Key measures to extend the PLC at maturity

In addition, at the maturity stage, it is important to pay special attention to the product’s competitive position and understand how often customers choose it rather than products from other companies. This data is needed not only to identify strengths that should be emphasized, but also to spot the point at which demand starts to decline in time. Sales promotion At the maturity stage, methods that encourage the purchase of a product or service should be used.

In addition to discounts, assortment expansion, and personalized offers, the lifecycle at this stage can also be influenced by: - Up-Sell technique - advertising and promotion emphasize more expensive versions with a broader set of functions and better specifications; - Down-Sell method - the customer is offered a more affordable version; - Cross-Sell strategy - selling products used together with the main product.

Up-Sell and Cross-Sell techniques help increase revenue and average order value, while the goal of Down-Sell is to reduce the abandonment rate. An example of sales promotion methods in use

Important! When choosing sales promotion methods, you need a careful analysis of the target audience and prompt customer feedback. These tools should not be used thoughtlessly, or there is a risk that the customer will feel pressured and turn to competitors. Decline When the popularity of a product or service begins to fall, its position must be analyzed and its prospects assessed. The main questions the entrepreneur must answer are: 1.

1. What exactly caused the decline - a natural drop in customer interest or mistakes in the marketing strategy?
2. What measures will help revive demand at this stage?
3. How much money will it take to implement these measures?
4. For how long can the product lifecycle be extended using the chosen methods? If the decline stage is caused, for example, by severe product obsolescence and modernization requires relatively small costs, the PLC can be extended.

This can be done through measures such as a major overhaul of features and functions, restyling, and the largest possible price reduction. If analysis shows that modernization would require substantial costs and popularity would rise only briefly, the product is withdrawn from the market. Products already released are usually sold off at steep discounts through campaigns such as stock clearance sales.

Although product lifecycle management is getting more attention, many entrepreneurs and companies make mistakes at various stages. This, in turn, hurts payback, sales volume, and other aspects of the business. Mistakes and their consequences

To reduce the risk of such errors, you need to pay maximum attention to the proper implementation of tools and methods for product lifecycle management before production begins. Modern IT solutions will help a business owner always know what stage of development the promoted product is at, whether it is ahead of competitors or, on the contrary, lagging behind them.

Product lifecycle management is a whole set of measures and tools that help extract maximum profit from product sales. If a product or service gains popularity, these methods make it possible to retain the interest of existing customers for as long as possible and attract new ones. If, however, experience shows that revenue will decline in the long term, well-structured management will spare the company unnecessary costs during the sales decline stage.