The life cycle has four stages – introduction, growth, maturity and decline. While some products may stay in a prolonged maturity state, all products eventually phase out of the market due to several factors including saturation, increased competition, decreased demand and dropping sales.
Why is product life cycle useful?
The product life-cycle is an important tool for marketers, management and designers alike. It specifies four individual stages of a product’s life and offers guidance for developing strategies to make the best use of those stages and promote the overall success of the product in the marketplace.
What do you mean by product life cycle?
It describes the stages a product goes through from when it was first thought of until it finally is removed from the market. Not all products reach this final stage. Some continue to grow and others rise and fall. If playback doesn’t begin shortly, try restarting your device.
What happens in the decline stage of the product life cycle?
In the decline stage, sales of the product start to fall and profitability decreases. This is primarily due to the market entry of other innovative or substitute products that satisfy customer needs better than the current product. There are several strategies that can be employed in the decline stage, for example:
Which is the most competitive stage of the product life cycle?
Maturity Stage – During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake.
How long does the maturity stage of a product last?
The maturity stage may last a long time or a short time depending on the product. For some brands, the maturity stage is very drawn out, like Coca-Cola ( KO) – Get Report . 4. Decline Although companies will generally attempt to keep the product alive in the maturity stage as long as possible, decline for every product is inevitable.
