Product life cycle
Phases a product passes through: innovation, introduction, growth, maturity and decline.
The product life cycle is a concept used in marketing to describe the various stages a product goes through from its inception to its eventual decline and removal from the market. There are typically four stages in a product’s life cycle:
1. Introduction: In this stage, the product is new and being introduced to the market. Sales are typically low, and significant marketing efforts are required to generate awareness and interest in the product.
2. Growth: As awareness and interest in the product increases, sales start to grow rapidly. During this stage, production volumes increase, and the product becomes more widely available in different markets and locations.
3. Maturity: Once the product has been on the market for some time, growth rates slow down, and sales plateau. During this stage, competition also increases, and companies need to work harder to retain market share.
4. Decline: Over time, sales begin to decline, and the product becomes less popular or outdated. At this stage, companies may reduce their investment in the product to maximize profits before eventually phasing it out.
Understanding the product life cycle can help companies tailor their marketing and sales strategies to the needs of the product in each stage. For example, in the introduction stage, companies may focus on creating buzz and generating interest through advertising, while in the maturity stage, they may focus on maintaining market share and maximizing profits.
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