CALVINDOL
VIP Contributor
The product life cycle is a model that describes the stages that a product goes through from its introduction to its decline. The product life cycle model consists of four main stages:
INTRODUCTION: This is the stage in which a new product is first introduced to the market. During this stage, the product is not yet widely known and sales are typically low.
GROWTH: During this stage, sales of the product start to increase rapidly as more and more consumers become aware of it. This is the stage where the company may invest to increase production, distribution, and advertising efforts.
MATURITY: During this stage, sales of the product start to level off as the market becomes saturated. This is the stage where the company may focus on maintaining market share and maximizing profits.
DECLINE: During this stage, sales of the product start to decrease as the product becomes less popular. This is the stage where the company may decide to discontinue the product or to reposition it in the market.
Futhermore, the length of each stage can vary depending on the product and the market. Some products may have a very short life cycle, while others may remain in the market for decades. The product life cycle model can be helpful for companies in understanding the different stages a product goes through, and in developing appropriate strategies to address the challenges and opportunities of each stage.
INTRODUCTION: This is the stage in which a new product is first introduced to the market. During this stage, the product is not yet widely known and sales are typically low.
GROWTH: During this stage, sales of the product start to increase rapidly as more and more consumers become aware of it. This is the stage where the company may invest to increase production, distribution, and advertising efforts.
MATURITY: During this stage, sales of the product start to level off as the market becomes saturated. This is the stage where the company may focus on maintaining market share and maximizing profits.
DECLINE: During this stage, sales of the product start to decrease as the product becomes less popular. This is the stage where the company may decide to discontinue the product or to reposition it in the market.
Futhermore, the length of each stage can vary depending on the product and the market. Some products may have a very short life cycle, while others may remain in the market for decades. The product life cycle model can be helpful for companies in understanding the different stages a product goes through, and in developing appropriate strategies to address the challenges and opportunities of each stage.