The product life cycle In marketing, the product life cycle refers to the theory that, like people, most products pass through distinct life stages. These stages are: 1. Introduction (product development and launch)
2. Growth 3. Maturity 4. Decline.
In the introduction and growth stages, sales rise. In the maturity stage sales flatten out. In the decline stage, sales decrease.
TIME Product Life Cycle Curve
A business should always be aware of where its products or services are in their life cycle and to look for new products to replace those going into decline.
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Factors that influence the length of a product life cycle: Durability
Goods that are durable, such as cookers, will not have to be replaced for many years. This can result in new sales decreasing rapidly. Fashion
Sales of highly fashionable items, such as clothing, usually go into decline very quickly when they are no longer in fashion. Technological innovation Improvements can date new products within a short space of time. Powerful new microchips make older computer models go out of date very quickly. Marketing
Some firms successfully redesign the entire marketing mix for products where sales are declining. This gives them a new lease of life. This was successfully done for Club Orange and Škoda cars.
Research
Think of the products that you use or read about on a daily basis and identify one product that is at each of the following stages of the product life cycle: 1. Introduction 2. Growth
