Stages of Product Development
When you research on the world’s economy, you will find that many individuals and production companies have been established. New product inventions is associated with stiff competition from existing products. Product invention, from where its production begins to when it sells in the market involves a few cycles. It is with no doubt that most businesses are established mainly to increase sales and maximize profits. Product development is a process that involves five key stages.
Product development is the first and most critical stage in the product life cycle. At this stage, the business has to source for extra funding from external sources. There is also no mush revenue coming in since there are less sales. You can also consider seeking financial assistance from friends and family at this point.
Product development economists have published the fact that the introduction stage is the first step every new product has to go through. It is required that after product invention, a business owner should look into campaign ads and marketing measures. When you invest in effective marketing, you are able to reach more customers, both locally and internationally Considering the fact that there are different marketing strategies, discover more on the one that suits your type of product on this site.
If a product goes though the introduction phase, the next crucial phase is its growth. Every product that comes into the market and has increased market will need to be produced in large quantities for it to meet the rising demand. At the growth stage, every business owner needs to invest more in seeking resources to ease production. Apart from machinery, there is need to hire more sales persons and production team. You can discover more on how to undergo human resource management on this website.
Maturity phase is the third phase that every new product must undergo. During maturity phase, low production and advertising costs enable a business to maximize on sales and profits. The company has already created connections with potential buyers, and expenses are now scaled down to delivery costs and paying employees. It is during product maturity stage where customers now start purchasing substitutes which appear cheaper and appealing. To keep at pace with the high competitive levels, there is need to adopt product innovation measures.
The decline phase starts to set in when the product is undergoing saturation. A product’s decline is depicted by when it starts selling less as compared to before. Decline stage is associated with more competition from other products. At the decline stage, business owners can opt for discontinuing the product, business franchising, product innovations, finding new uses or exporting the product. It is advisable to consult highly experienced business consultancy firms on what will save your product during decline phase.