Stages of Product Development
When you research on the world’s economy, you will find that many individuals and production companies have been established. This has posed a competition threat to small business enterprises. Product invention, from where its production begins to when it sells in the market involves a few cycles. The main reason why most people engage in product invention is to 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. You will find that cash outflows are greater than inflows at this stage since there is a small market. 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. For a product to sell in the market, an entrepreneur must adopt effective market and advertisement measures. This explains how campaign ads and adverts create more product awareness in the market. Every product has a marketing strategy that suits it best.
The third stage in a product life cycle is growth. Due to the marketing strategies applied in phase one, there will be more demand hence increased production and sales. For you to keep up with increased demand, you need to put more money and purchase more resources. There is need to hire effective and sufficient personnel to help in sales and production. 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. The maturity stage hugely involves maximizing on profits, since the costs of production and marketing decline. 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 fifth and final stage of product development/invention is the decline stage. During decline, there are low sales hence decrease in revenue. Decline stage is associated with more competition from other products. Carry out any of the above options during the decline phase. Click on this website to discover more on companies that offer advisory and business consultancy services.