Your product is dying. With the same inevitability that we humans move ever closer to death, so does every software application move towards its eventual demise.
The difference is that we have become increasingly competent at caring for ourselves and each other with the result that our chances of a longer and fuller life continue to increase with time. We have learned to recognise our own and each other's positions in the life cycle, and become aware that we have the means and ability to provide the care and environment necessary for our continued survival and prosperity. We nurture and care for our small children, and accept and encourage their ability to stand on their own two feet as part of their journey towards the day they will become are fully self-supporting. In due course, they will care for us when we become old, and in turn will one day be supported by their own children.
And so to software. A product's life cycle is not much different from our own, yet despite our ability to cater for our own changing needs, many of us are quite oblivious to the needs of our products and software as time goes on. The concept of the Product Life Cycle is a simple one, and allows you to see where your product stands at any one time, and to assess what circumstances lie ahead, by providing the information that you need in order to react accordingly. In much the same way that we do not wait for a child`s teenage years before starting their education, or for an older person to become so frail that they are unable to care for themselves, we should not wait for the negative points in a product's life cycle to be so obvious that it is too late to respond effectively.
There are four stages in the Product Life Cycle each with their own recognisable symptoms, threats and opportunities, all of which should be addressed individually.
The Early Days
Firstly, the Introduction stage. When a new product is introduced to the market, the initial impact is usually very slight, and spotting any emerging patterns is often close to impossible. You're likely to enter the market with only the barest of ripples, let alone a splash. There are exceptions to this. Large advertising budgets, hype, pre-launch public interest and new technologies may all increase the initial visibility of a product's launch. Yet even a high-visibility campaign will take time for customers to learn that a product is available, and time for a significant demand to build up and become apparent. For most of us, even with the most stringent of marketing budgets, viable profits at this stage are unlikely, and the possibility of actual short-term loss a very real one.
So how long should this stage last? The answer is almost impossible to estimate with any degree of accuracy, as there are so many variables involved. So much depends on the market demand for the software, the marketing budget, visibility and so on.The basic strategy at this stage is simply to get the product "out there", and draw as much attention to it as is possible.
Growing Up
Next in the product's life cycle is the Growth stage. If all goes according to plan, this stage should be easy to recognise both in terms of sales and profits. But the risk is that many companies will simply sit back and enjoy the ride and the success. Absolutely not! The growth cycle is the time to aggressively seek-out new opportunities, and to gain as much of the market share as possible. Some fairly clear patterns should start to emerge quite quickly at this stage, and it is usually obvious what is working and what is wasting your time. Look for three factors. The "successful" factors need to be looked at, studied and improved. If a magazine editor gives you a glowing write-up, capitalise on this by actively seek-out more magazines, more editors and more glowing write-ups!
The "intermediate" factors are a little less obvious. Results in this category tend to be steady and uninspiring, but can show potential for improvement ? only if you spot them. If for example you're getting a significant amount of traffic from one or two of the search engines, then people must be actively seeking what you sell. So get on more of the search-engines, and spend some time on improving your position.
And finally, the "On the Way Out" factor, which is the easiest to spot, yet also the easiest to ignore. You may like spending time on constantly optimising and improving your website, but when you reach a certain point, the amount of time required to do so outweighs the actual results. Anything that you're doing that consumes time with nothing or little to show for it should be avoided. Move on.
The Mature Product
The next point in the product's life cycle is the Maturity stage. The euphoria of the growth stage slows down to a more steady and sedate pace, which can often offer an abundance of opportunities, and can also pose some potential threats. Your competition is likely to be at it's fiercest during this stage, and the level and success of your marketing will almost certainly prove to be a critical factor in your product's success. The Maturity stage is quite similar to human adulthood. Massive growth is unlikely, and as long as we accept our age and take care of ourselves, we can reasonably look forward to a long and healthy future, both for us and our products.
Increasing the market share during the Maturity stage is possible, but will probably not prove to be very cost effective. Right now, the product is more likely to be affected by trends in the market than at any other time. Assuming that demand remains healthy, then marketing, promotion, advertising and visibility are of the utmost importance in order to maintain rather than increase. New packaging can help to rejuvenate a product during the Maturity stage, as may new sales methods, or aggressive competition either with the product's features or price.
The Happy Pensioner
Finally, the Decline stage in the Product Life Cycle . The human Golden Years are not the death agonies. In the same way that most pensioners enjoy many long and happy final years, so too can your product! Round about this time a common error is to misread short-term fluctuations, and misinterpret them as the beginning of the Decline stage. Although the Product Life Cycle is theoretically a smooth and quite elegant curve, the reality is that there are constant variations that may be down to any number of external factors. The diagram below demonstrates the point, and shows a realistic model against the theoretical one.
The Decline stage does not mean that it's time to abandon your product altogether, but that new and appropriate strategies may be in order. For software, this may mean new versions and features, adaptation to newer operating systems and hardware, price reductions, in short, whatever is required to prolong the life of the product.
Try applying the concept of the Product Life Cycle model to your application. You should be able to implement quite a few new options and strategies once you have identified the current stage in your product`s life cycle, and in the market itself. While the Product Life Cycle concept is useful, it is equally important to consider the external factors, particularly in response to the Decline phase. My own favourite way of looking at these external factors is the PEST analysis; Political, Economic, Social and Technological. Take all of this information into account before applying any form of life cycle based strategies.
Applying the Product Life Cycle to your application will allow you to take a step back from the day-to-day running of your business, and to see objectively where you are, and what opportunities and threats lie ahead. You can use the information that this technique gives you to ensure that your marketing efforts are not mistimed, inappropriate and ineffective. As Sinatra said ? It was a Very Good Year. Do it right. Be seen, be sold.
Copyright 2005 SharewarePromotions Ltd
Dave Collins is the CEO of SharewarePromotions Ltd., a well established UK-based software and shareware marketing company. Are your software sales slow? Find out how to promote your software across the web and multiply your sales level at http://www.sharewarepromotions.com
same day cleaning service Bannockburn ..There is a Batting Cages Business for those people who... Read More
Many ventures are faced with the challenging task of raising... Read More
If you intend to franchise your company you will need... Read More
If you are a small business you know that you... Read More
A lot of business owners I've spoken with lately have... Read More
We very much like what we see in Lubbock, TX... Read More
Is your business making money? Would you know?Figuring out whether... Read More
Providing high quality customer service is a must for any... Read More
THE PSYCHOLOGY OF PRICINGIn case you hadn't noticed, people can... Read More
A common hazard faced by new entrepreneurs is a lack... Read More
Franchising has made the world look really small. The well... Read More
Just a few years ago, when one thought of a... Read More
When you go into business for yourself, there are many... Read More
Small business owners can relieve a lot of their own... Read More
Those who are in the pressure washer business should not... Read More
So you want to get into the auto detailing business... Read More
Running a small business requires many skills. However, to do... Read More
According to the American Society for Aesthetic Plastic Surgery, since... Read More
An observation while returning home from a seminar: Getting away... Read More
What are the best methods for keeping a good business... Read More
How is your pipeline structured?I assume most of you have... Read More
If you're organized, smart, capable and willing to work with... Read More
Think of your business as a living, breathing, organism. It... Read More
If you're anything like me then you dislike with a... Read More
What is the satisfaction & expectation review of the business... Read More
housekeepers near Deerfield ..Why should you do informative talks to smaller groups?Informative talks... Read More
Everything starts with a business plan: If you don't have... Read More
First, we need to define the different kinds of skip... Read More
In the world today, many people are further in debt... Read More
One of the hidden perks of raising six children is... Read More
Is this you?You dreamed of owning your own business, doing... Read More
One way to determine your companies mission statement is based... Read More
Looking for a place to add a Quick Lube away... Read More
While there are few career paths that some would call... Read More
When working properly, computers enable small businesses to make big... Read More
A Private Investigator is a professional trained in the art... Read More
Introduction: This article is written as a general discussion on... Read More
And is having a logo really that important?My answer to... Read More
As a practitioner and student of Small Business Marketing, I... Read More
How do you find the best business partners?Finding a good... Read More
If you own a mobile truck washing, pressure washing or... Read More
You have spent considerable time pulling your business plan together,... Read More
Q. I am a former pastor who left the ministry... Read More
As you reflect on this year and prepare for next... Read More
Hi, Charles...here, Your Cap and t-shirt guy From Texas. How... Read More
Hew Hampshire car wash market. Well we have visited every... Read More
Running a small business requires many skills. However, to do... Read More
Q: I have outgrown my home office and need to... Read More
To wash an airplane there are many items you will... Read More
Last week we discussed the importance of performing an autopsy... Read More
Small Business |