Product life-cycle and its importance in Business strategies

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Consequently, the life cycle cost of the product is the cumulative cost over the time interval between the conception of the product and its disposal .

Product life-cycle and its importance in Business strategiesvIn conclusion, during the life of a product , the company must modify its marketing strategies to respond to the changes in the market and the pressure exerted by the competition by analyzing the various indicators until it is decided to remove the product itself from the market because it is no longer of interest to consumers and synonymous with losses for the company which will thus be able to allocate time and resources to the next product .

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digital marketing, our blog awaits you with lots of other content!Afterwards, consumers start to know about the product, the company will then have to identify the possible weak points to correct them in order to promote the growth of the product.

With the sales curve rapidly rising, the first profits are achieved, thus arriving at a balance between income and expenses, thus beginning the period of profit for the company, in which unit production costs decrease, new distribution channels are created and competitors begin to enter.The length of the introduction period depends on the market's predisposition to accept the new product: in this phase the costs for the company are very high having to present a mostly unknown product which will consequently be followed by non-existent profits and limited distribution .