Marketing Management - Product Life Cycle

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Marketing Management - Product Life Cycle

Product life cycle is the timeline of demand for the product from its initial stage of introduction.

Let us now discuss the various stages of a product, starting from its innovation to its decline stage.

Stages of Product Cycle
Product life cycle can be defined as the life cycle of the product. It means the various stages a product sees in its complete life span.

Product life cycle comprises of the following four stages −

Introduction or innovation

Growth

Maturity

Decline

Let us start by describing the first stage we have in the product life cycle, that is, the introduction stage.

Introduction Stage
The product is introduced in the market in this stage; it is the initial stage of the product.

Sales of the product are low in this stage because there may not be a need of the product in the market.

The product may undergo brand trouble.

In this stage, there is very little or no profit.

The demand for the product is created and developed in this stage.

After this initial stage, the next stage of the product is the growth stage.

Growth Stage
In this stage, the demands and market share increases as well as competition emerges in the market.

Generally, the price remains constant in this stage.

Marketing and promotional expenses increase.

There is rapid increase in sales.

The manufacturing cost decreases so there is increase in profit margin.

It penetrates other market segment.

In the growth stage, there is a boom in the demand of the product and the profit increases substantially.

Maturity Stage
The price of the product is comparatively low, but the advertisement and promotion cost increases in this stage.

This stage remains for a comparatively longer duration.

In this stage, there is high competition.

Profit is decreased.

Sales growth can be divided into the following three categories in the maturity stage −

Growth

Stability

Decay

In growth, there is an increase in the demand of the product. In stability, the demand of the product remains constant. In decay, there is a slight decrease in the demand.

Decline Stage
There is a decrease in sales in this stage. Demand of product also decreases.

There is decrease in the price of the product.

Margins are lowered.

There is introduction of new product in market.

New strategies are implemented.

This is the final stage of the product. There is a decrease in demand and sales of the product.



Source: https://www.tutorialspoint.com/marketing_management/marketing_management_product_life_cycle.htm