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Problem

How does diffusion of innovation relate to the product lifecycle?

Step-by-step solution

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Step 1/5

Marketing managers are searching for new and better ways to increase customer satisfaction and increase stakeholders’ return. A firm must be involved in the process of new product development and develop an overall strategy of product and manage process to attract customer’s attention.

Step 2/5

The lifecycle of product is the underlying reason for the process of development of product. This is due to the fact that products are replaced by new technologies over some time length. The product lifecycle ensures that a firm is involved in the process of product development.

Step 3/5

The logic behind the lifecycle of product depends on innovation diffusion, that specifies types of different customers. These customers are more or less ready to accept new products in more or less time. There are four main stages of product lifecycle, introduction or start up growth of sales stage, growth stage, where the product starts to be accepted and sales rises. The maturity stage, where sales start to level off as the penetration is high in the market. The decline stage, where sales begin to fall as it is substituted with newer solutions.

Step 4/5

The reason behind the lifecycle of product is the continuous development of new methods and technologies creating scopes and threats. Moreover, trade globalization, reducing market entry barriers permitted new technologies to enter into new markets. No firm can attain success without being replaced by newer, advanced, and less costly alternatives in its product lifecycle process. Firms undertaking rigorous development and research programs proved to be more successful.

Step 5/5

Creating a project environment for innovation and skills and resources to produce new products. Suitable strategies to fit the new product and appropriate system for new product development with effective product positioning strategies will bring success for firms to diffuse innovation and new product into the product lifecycle. Hence, diffusion of innovation related to the lifecycle of product.