Product Life Cycle vs. Diffusion of Innovation
Product Life Cycle and Diffusion of Innovation are two different but interrelated marketing theories. Going further I’d say they are two sides of the same coin. Looking at them from this perspective gives you a chance to see the big picture from both customer and product perspective.
Product Life Cycle
Every single product has a lifespan. It starts and it ends. What matters is how long and how successfully will it lust. According to this theory, the Product Life Cycle consists of 4 stages: Introduction, Growth, Maturity, and Decline.
Introduction: A product has just launched and very few people have information about it. Customers have to be informed. You wait for very first signals from initial users and you are flexible to the reaction of the market. No discounts, no low prices, no mass promotional campaigns are needed. Generally, you experience slow sales and high expenses. Profit? Forget.
Growth: Life is colorful. A period of rapid market acceptance and substantial profit improvement came. You’re busy working on product development by increasing quality, adding new features, improving processes, tuning the…
