So, What's a Product, Then?

Products are long-term, evergreen entities that are continuously developed and improved. They follow a series of distinct stages, which are referred to collectively as the product lifecycle.

The product lifecycle

Product development is a complex process that requires a different set of skills than what we will focus on in this lesson. However, the product lifecycle helps product managers understand what needs to be done to take a product from concept to completion. It's not an exhaustive list, and there are things that need to happen between the birth and death of a product that aren’t included in this visualization.

The phases of the product lifecycle include:

• The introduction phase

• The growth phase

• The maturity phase

• The decline phase

Think of a product manager launching a new smartphone. To start, the product manager and their team brainstorm ideas for what features and specifications the smartphone should have. In the introduction phase, the product manager focuses on promoting the smartphone to potential customers and acquiring those customers. The growth phase is when the product manager tracks the performance of the smartphone against customer needs to ensure it has achieved product-market fit. In the maturity phase, the smartphone has achieved a high level of market penetration and profitability and the focus shifts to cost management and mitigating risks of product obsolescence. Finally, the decline phase is when sales slow down and the company must decide if the smartphone has delivered its expected value. If it has, the product continues into a product extension and if not, the product should be sunset, or phased out.

Introduction and growth phases

Once the product is ready there should be a product launch, which opens the introduction phase. Introduction phase responsibilities include product promotion and customer acquisition activities. After introduction comes the growth phase, where product managers track the product performance against customer needs to achieve product-market fit.

The product launch can be compared to a grand opening of a store. The introduction phase is like the store's opening day—the focus is on attracting customers and building buzz. The growth phase can be compared to a store's first few months, where the store's performance is closely monitored and adjustments are made to ensure it is meeting the needs of the customers and becoming established in the market.

Maturity phase

Next, the product enters the maturity phase. This is when the product has achieved product-market fit. It's enjoying great market penetration and profitability. Product managers in this stage focus on cost management and mitigating the risk of product obsolescence.

The maturity phase of a product can be likened to someone reaching the peak of their career. Just as an individual who has established themselves in their field focuses on maintaining their position and managing their income, when a product is established in the market product managers focus on cost management and ensuring the product remains relevant.

Decline phase

Finally, the product will enter a decline phase. Sales are slow and the product will likely experience customer attrition. The company must decide whether the product has delivered its expected value. If so, the product should be sunset or extended further via renewed efforts.

The decline phase of a product can be compared to the autumn season of a tree. Just as a tree's leaves begin to fall and the tree prepares for dormancy, a product's sales begin to slow and the product reaches the end of its lifecycle. The company must decide whether to cut down the tree or to give it renewed efforts to extend its life, just as a company must decide whether to sunset the product or invest in renewed efforts to extend its lifecycle.

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