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Talking about these two concepts, we often confuse them. So, what’s a difference between a product life cycle and a product development cycle? Today, we will dig into both of them to tell you about which stages your idea should go through to become a market-ready product. Product Life Cycle The main difference between these concepts is that a product development cycle is a part of a product life cycle. The product life cycle looks at the performance of the product in the market, and it’s market share. While a product development cycle is focused on the planning, development, and evaluation of a product itself. A product life cycle usually refers to stages of the product’s lifespan that include development, introduction, growth, maturity, and decline. Development This is the first phase of a product lifecycle. The product development stage is not only about building a product. It starts with detailed market research, competitor research, product design, and includes user testing. At this stage, a team investigates the potential growth of a product and builds a business case to validate a product. Collecting test users’ feedback is also crucial for this stage. Introduction At this phase, a brand introduces a product to the audience and starts the initial promotion. Many companies use one of these strategies: penetration strategy and skimming. The first one implicates that you set a bit higher price for a product at the beginning and start decreasing it for customers over time. It is beneficial if there are only several competitors in the market and if your target audience is ready to buy a product for a higher price. This approach can be a good practice to use in product promotion. Skimming means gradually increasing the price of a product. This strategy is helpful if your brand has a lot of competitors and if the initial price of a product is much lower than the average price on the market. Growth Stage At this stage, your product’s market share starts growing. Usually, it happens thanks to more extensive use of advertising. The most popular advertising channels are social media, Google Ads, TV, and radio. If you are running advertising campaigns successfully, you must see a significant increase in sales. After a period of an ongoing increase in sales, eventually, your share of the market will stabilize.
Big data, programmatic access to high-performance media inventory and the maturity of cloud-based AI tools and services are quickly changing the landscape for marketers – and the people who work in marketing organizations. While this trend is just now taking off, it’s clear how fast it’s accelerating. If your company isn’t all-in on adopting AI today, it will be soon. As with any change, this creates opportunity. But traditional skill sets may not be as highly valued as they once were within marketing organizations. As this new frontier emerges, it’s a good time to take stock of what’s valued now in a growth-oriented marketing team, and how that may change over the next few years as autonomous marketing technology becomes more prevalent.
Growth hacks are specific experiments that can help grow, activate, retain or monetize users and customers. These are the best articles on growth hacks and growth hacking. Learn the best growth hacks for all types of businesses including the tactics you can try right now to find new growth.