Product Development and Management: Central to Marketing Strategy and Organisational Success

Product development and lifecycle management are central to marketing strategy and organisational success. Effective product management involves not only creating and launching new offerings but also guiding them through their various stages in the product lifecycle. Marketing professionals are crucial in this process as they provide market insights, shape value propositions, and ensure alignment with consumer needs. This essay explores the interrelationship between marketing, product development, and lifecycle management, drawing upon academic theory, textbooks, journal research, and examples from industry practice.

The Link between Marketing and Product Development

Marketing plays a pivotal role in product development by acting as a bridge between consumers and organisations. According to Czinkota and Ronkainen (2019), marketers are responsible for identifying unmet needs in the market, ensuring that products developed by R&D teams are aligned with consumer expectations and trends. This process involves market research, consumer segmentation, and competitive analysis.

For example, in the case of Apple Inc., marketing insights revealed the growing demand for wearable technology, which influenced the development of the Apple Watch. Marketers not only gathered consumer data but also helped position the product as a lifestyle device rather than just a timekeeping instrument (Yoffie & Kim, 2019). This highlights how marketing facilitates product innovation by shaping design, features, and customer perceptions.

Moreover, marketing supports new product development (NPD) through concept testing and market validation. Urban and Hauser (1993) emphasise that systematic product testing reduces the risk of market failure, as organisations can adjust features and pricing strategies before full-scale launch.

Product Lifecycle Management

The product lifecycle (PLC) model, first introduced by Levitt (1965), remains a key framework for understanding how products evolve in the marketplace. The four stages—introduction, growth, maturity, and decline—require different marketing approaches.

1. Introduction Stage: At this point, companies focus on creating awareness and stimulating trial purchases. Heavy investment in promotion is common. For instance, when Tesla launched its early electric vehicles, significant marketing communication was required to educate consumers about the benefits of sustainable mobility (Mangram, 2012).
2. Growth Stage: As sales increase, the emphasis shifts towards brand building and loyalty creation. Companies often expand distribution and adjust pricing to remain competitive. In the smartphone industry, Samsung aggressively expanded its distribution and improved product features during its growth phase to rival Apple.
3. Maturity Stage: Sales growth slows, and the market becomes saturated. Marketers focus on differentiation, brand equity, and promotional tactics to sustain market share. For example, Coca-Cola uses advertising campaigns centred around emotional branding and nostalgia to maintain relevance in mature markets (Pendergrast, 2013).
4. Decline Stage: Demand decreases due to technological advancements or changing consumer preferences. Companies may choose to harvest profits, divest, or reposition products. For instance, the DVD market declined rapidly with the rise of streaming services such as Netflix. Companies like Blockbuster failed to adapt, illustrating the importance of strategic lifecycle management.

While the PLC provides useful guidance, it has also been criticised for being overly simplistic and deterministic (Dhalla & Yuspeh, 1976). Products do not always follow a predictable path; some may remain in the maturity stage for decades, as seen with Coca-Cola. Therefore, managers must apply the model flexibly in conjunction with market data.

The Role of Marketing Strategy in Lifecycle Management

Marketers use various tools and strategies to manage products across the lifecycle. These include pricing strategies, distribution management, and promotion tactics.

• Pricing: In the introduction stage, companies may use penetration pricing to attract customers or skimming to maximise early profits. For example, Apple often employs a skimming strategy, pricing new iPhone models at a premium to capture value from early adopters (Kotler & Keller, 2016).
• Distribution: Efficient distribution channels ensure products are available where and when consumers need them. Amazon’s global supply chain illustrates how strong logistics can accelerate growth and maintain competitive advantage.
• Promotion: At maturity, firms often rely on promotional campaigns to reinforce brand loyalty. Nike, for instance, continually refreshes its advertising with themes of empowerment and inclusivity, sustaining its strong market presence.

Furthermore, portfolio management allows companies to balance products at different stages of the lifecycle. The Boston Consulting Group (BCG) Matrix is a widely used tool, categorising products as Stars, Cash Cows, Question Marks, or Dogs (Henderson, 1970). This enables managers to allocate resources effectively, ensuring long-term profitability.

Challenges in Product Development and Management

Despite the strategic frameworks, companies face several challenges in product development and management.

1. High Failure Rates: Studies suggest that a majority of new products fail within the first year (Castellion & Markham, 2013). Causes include poor market research, inadequate differentiation, and misaligned pricing.
2. Rapid Technological Change: In industries such as electronics, fast-paced innovation means products quickly become obsolete. Firms like Nokia, once dominant in mobile phones, failed to adapt to the rise of smartphones and suffered decline.
3. Globalisation: Operating in international markets requires adapting products to different cultural and regulatory contexts. For instance, McDonald’s offers localised menu items such as the McAloo Tikki Burger in India, reflecting local tastes (Vignali, 2001).
4. Sustainability Pressures: Increasingly, consumers demand environmentally friendly products. Companies must integrate green marketing into product development. Unilever’s Sustainable Living Brands have shown higher growth rates, demonstrating the business case for sustainability (Unilever, 2020).

The Future of Product Development and Management

Emerging trends are reshaping how companies approach product development and lifecycle management.

• Digital Transformation: The integration of big data and artificial intelligence allows marketers to predict consumer needs with greater accuracy. For example, Netflix leverages predictive analytics to recommend content, keeping users engaged and reducing churn (Gomez-Uribe & Hunt, 2016).
• Customer Co-Creation: Many firms now involve customers directly in product design. LEGO’s Ideas Platform allows fans to submit designs, some of which become official products. This approach enhances engagement and reduces the risk of market rejection (Antorini et al., 2012).
• Circular Economy Models: Instead of the traditional “make-use-dispose” lifecycle, companies are adopting circular approaches where products are designed for reuse or recycling. IKEA has committed to becoming a fully circular business by 2030 (IKEA, 2021).

In conclusion, marketing is deeply interwoven with product development and lifecycle management. From identifying unmet needs to guiding products through introduction, growth, maturity, and decline, marketers play a critical role in ensuring commercial success. Frameworks such as the Product Lifecycle and BCG Matrix provide valuable insights but must be applied judiciously. Challenges such as globalisation, technological disruption, and sustainability demand adaptive strategies. Looking forward, digital technologies, customer co-creation, and circular economy models will further transform how organisations manage their products.

By aligning innovation with market insight and sustainability imperatives, organisations can not only enhance competitiveness but also contribute to long-term societal value.

References

Antorini, Y.M., Muniz, A.M. & Askildsen, T., 2012. Collaborating with customer communities: Lessons from the LEGO Group. MIT Sloan Management Review, 53(3), pp.73–79.

Castellion, G. & Markham, S.K., 2013. Perspective: New product failure rates: Influence of argumentum ad populum and self-interest. Journal of Product Innovation Management, 30(5), pp.976–979.

Czinkota, M.R. & Ronkainen, I.A., 2019. International Marketing. 11th ed. Boston: Cengage Learning.

Dhalla, N.K. & Yuspeh, S., 1976. Forget the product life cycle concept! Harvard Business Review, 54(1), pp.102–112.

Gomez-Uribe, C.A. & Hunt, N., 2016. The Netflix recommender system: Algorithms, business value, and innovation. ACM Transactions on Management Information Systems, 6(4), pp.1–19.

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IKEA, 2021. Circular IKEA. [online] Available at: https://about.ikea.com [Accessed 25 August 2025].

Kotler, P. & Keller, K.L., 2016. Marketing Management. 15th ed. Harlow: Pearson.

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Mangram, M.E., 2012. The globalization of Tesla Motors: A strategic marketing plan analysis. Journal of Strategic Marketing, 20(4), pp.289–312.

Pendergrast, M., 2013. For God, Country, and Coca-Cola. 3rd ed. New York: Basic Books.

Unilever, 2020. Sustainable living. [online] Available at: https://www.unilever.com/sustainable-living [Accessed 25 August 2025].

Urban, G.L. & Hauser, J.R., 1993. Design and Marketing of New Products. 2nd ed. Englewood Cliffs, NJ: Prentice Hall.

Vignali, C., 2001. McDonald’s: “Think global, act local” – the marketing mix. British Food Journal, 103(2), pp.97–111.

Yoffie, D.B. & Kim, R., 2019. Apple Inc. in 2019. Harvard Business School Case Study, No. 9-719-428.