standard post

What is the life cycle of the market?

What is the life cycle of the market?

Nothing lasts forever, the same applies to the market.

The changes that occur in the market and in the consumption habits of the population are notable, from time to time.

We perceive that evolution inevitably happens, and that it symbolizes the end of a certain market life cycle.

Companies need to be attentive to the great events that influence the market curve, issues such as: politics, consumption habits and mentality of the population of a particular generation, are decisive to draw up good strategies for action in the market.

The life cycle comprises four well-defined stages: launch, growth, maturity and decline.


The launch phase has as characteristics, the acquisition of new skills, conquest and development of differentiated technologies or other things that are capable of transforming the way of thinking of the market.

A great example of that, for example, is LED TVs. Little was said about such technologies.

Suddenly, the market began to improve electronics and transform the way of thinking of the consumer, showing the real benefits of this type of technology.

The companies that manage to improve their production and quickly improve each of these new skills and technologies, end up conquering considerable competitive advantages in relation to their competitors.

Investment in this phase is necessary, therefore, profitability in that period tends to be low. But, everything is compensated when the actual results begin to appear.


Growth is the second phase. Naturally, with the emergence of a new technology or competition, the market begins to demand that new type of product.

In this case, it is necessary to be prepared for market demands.

Let's think about the example of LED TVs, cited above: at first, few people understood the real benefit of that type of product.

However, to the extent that the market was being educated about the advantages of this new investment, the demand for products like this one was increasing, considerably increasing the number of consumers and companies that work with this type of technology.


At the time of maturity, the market is already uniform in relation to the technology or competition in question. The competition is already stabilized and the population already consumed that product at the time of "fever"

At this point in the curve, technology is already stagnant losing its appeal, companies that had to adapt to that demand have already done their part, and everything is fixed at that time (probably at that time, somewhere in the world someone is studying another way to perfect the products, and the cycle will start again).


When technology reaches maturity, it loses the attractiveness for the performance of the competition and the enthusiasm of the public, the decline begins.

Generally, in this phase we are able to perceive a considerable modification in the evolution line previously invested by consumers.

Many companies give up that market and go in search of new technologies and skills to launch another trend, thus initiating a new cycle.

What is the life cycle of the product or service?

It is also necessary to consider that products and services also have a specific life cycle , based on the growth or decline of the consumer market for that type of merchandise.

All the products developed by the market appear to solve a problem or take advantage of opportunities that were going unnoticed in the market.

The same logic of the market life cycle applies here: a new demand arises, companies strive to generate the best products and services to ensure that the public buys that product.

A real noise arises in the market, where people desperately seek to find that product in question, everyone is buying. The market stagnates and the product begins to get out of line due to the emergence of a new technology.

How has marketing been transformed?

During all these centuries of changes and evolutions, marketing was done in innumerable ways.

To assume a different form, with another approach and characteristics very different from each other, but always with the same objective: to make a consumer interact with your brand and become a customer.

Thinking about that, we list some of the ways that already existed and still exist to do marketing, but before that, we will show you two classifications that separate marketing: Outbound Marketing and Inbound Marketing.

Outbound Marketing

Its main objective is to attract the consumer in an incisive way. Telemarketing, spam emails, direct mail, magazine ads, outdoor, pop-ups on websites and remarketing.

All these ways of marketing are aimed at showing your brand and products before everything else. Despite being effective, this type of approach tires the consumer.

Taking into account that you can stand with some ads at inopportune moments.

Inbound Marketing

Techniques developed with the objective of educating and creating a relationship with consumers.

Despite having the same sales intention, in Inbound Marketing, your brand is worked differently.

Instead of advertising your products and prices, marketers teach the market, gain authority and there they help consumers in the purchase process.

And even after the sale, the work is not finished.

Clients continue to be educated and "pampered" to become evangelists of your brand, which is achieved with very clear and effective customer service processes.

Despite these huge differences, between the two modalities, Outbound exists since the beginning of the most primitive era of Marketing.

image source

Scene Rise

Author: Scene Rise

Comments :