The first stage of the product life cycle, that is, the innovation period, generally refers to the stage when the consumer response to the new product is unknown after the company launches the product, and the product has never been widely sold in the market, which is characterized by relatively low profits and rapid changes, but the brand recognition increases rapidly, which is suitable for product positioning and promotion.
The second stage of the product life cycle, that is, the maturity stage, generally refers to the stage when the supply and demand relationship reaches a balance, the real sales volume of the enterprise grows steadily, the product quality is differentiated, and the competitors join the stage. In the face of this stage, enterprises need to use marketing methods to effectively control financial investment in a timely manner and save costs.
The third stage of the product life cycle, that is, the recession period, generally refers to the stage when the real sales volume of the enterprise begins to decline, competitors intensify competition, and the first war and brand war appear one after another.
Finally, the fourth stage of the product life cycle, that is, the elimination period, generally refers to the market prime of the product, consumer demand for products is gradually decreasing, the transaction volume begins to decline, and the production enterprises focus on how to try to harvest the residual value of the product as much as possible under the phenomenon of recession.
In short, the product life cycle is divided into four stages, namely the innovation period, the maturity period, the recession period and the elimination period, each stage has its own characteristics, enterprises need to develop scientific and reasonable marketing strategies from all aspects, combined with the actual situation of the current period, in order to achieve the management of the product life cycle.