Financial Freedom 101

The product life cycle is a model that describes the stages a product goes through from conception to retirement. It is a useful tool for product managers and organizations to understand the evolution of a product and make informed decisions about its future. The product life cycle consists of four main stages: introduction, growth, maturity, and decline.

In real-world scenarios, the product life cycle is used by organizations to plan and make decisions about their product portfolio, allocate resources, and create strategies for growth and profitability.

Is it worth the time and money?

Before the actual product is introduced into the market there are a couple of preliminary steps a product team goes through. They are the ideation stage and the research and development stage. This is to determine whether the product can solve a problem and if people are willing to buy/use it.

Ideadtion Stage

The ideation stage is when an idea for a new product is conceived. Ideas can be generated from within the company. Internal employees notice trends from customer reviews and create guidelines/sketches/wireframes for a new product or feature to solve a customer’s issue. Very rarely is an idea manifested from thin air.

Using the collected user problems and guidelines, the product team has brainstorming meetings to generate solutions. The product manager and other stakeholders also consider the market opportunity, the resources required to bring the product to market, and the opportunity cost.

Research and Development Stage

The research and development stage involves refining the product concept and developing a detailed product plan. This stage includes market research, product definition, and technical development. The goal is to validate the product concept and ensure that it is feasible to develop and bring to market.

To validate the product concept many customer interviews are required. Product teams are working to determine who their target demographic is and if their product fits what customers need. During these interviews, a product manager wants to reframe from talking about the product idea and ask open-ended questions to the potential customer about their problems and needs.

The development side of this stage refers to creating MVPs and having multiple iterations of the product. The product team is getting their hands dirty, creating a timeline, developing features, launching alpha and beta versions of the product, writing user stories, and working with designers on estimations.

Product Life Cycle

Introduction Stage

The introduction stage is when a new product is first brought to market. The primary focus during this stage is to create awareness of the product and generate initial sales. Marketing and advertising efforts are usually focused on building the product’s brand, establishing its position in the market, and generating interest among potential customers. At this time there are very few competitors and users are normally early adopter types.

Growth Stage

The growth stage is when the product starts to gain traction and sales start to increase. During this stage, the focus is on scaling the product and expanding into new markets. This can include developing new distribution channels, adding new features and capabilities to the product, and entering new geographic markets. The goal is to maximize the product’s potential and increase its overall profitability.

Maturity Stage

The maturity stage is when the product has reached its peak in terms of sales and market share. At this stage, the product’s growth slows down and sales start to level off. The focus during this stage is on maintaining the product’s position in the market, managing its profitability, and maximizing its return on investment. This can include improving the product’s efficiency, reducing its costs, and streamlining its operations.

Decline Stage

The decline stage is when the product’s sales start to decline and the product becomes less profitable. At this stage, the product manager must decide whether to continue to invest in the product, modify it, or retire it. If the product is to be retired, the focus is on minimizing the negative impact of the product’s decline on the overall business. If the product is to be modified, the focus is on revamping the product and reinvigorating its sales. If the product is to be continued, the focus is on finding new markets for the product and maintaining its position in existing markets.

Wrap Up

Throughout the product management life cycle, the product manager must make strategic decisions and manage the product’s resources to ensure its success. They must also be aware of changes in the market and the competitive environment and adapt the product and its marketing strategies accordingly.

The product management life cycle is an important framework for understanding the stages a product goes through from conception to retirement. Understanding the life cycle can help product managers make better decisions, maximize a product’s potential, and ensure its overall success.