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PRODUCT LIFE CYCLE
A product life cycle is a theoretical model which describes or predicts the stages a product
goes through during its life i
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, from when it’s launched into the market to the end of its life
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forecasting sales trends
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analyse and manage a product portfolio
4
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Image from https://www
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com/technical-knowledge/faqs/what-is-a-product-lifecycle
a) Introduction stage
This is the first stage that products go through essentially when they reach the marketplace
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The product has just

come out and just released to the market thus the major focus in this stage is on raising
awareness
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Advertising expenditures
during this stage are very heavy implying extensive promotional costs
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The stage utilizes a lot of resources,
for this reason, no company would like to stay in this stage for a long time
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Sales start to
climb as the new product begins to attract more customers
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Companies in this stage begin to experience competition from the other market players
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The highest profit level is reached in the early stages of the
maturity phase
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Competition is
based on price and product differentiation
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Some
products can stay in this stage for decades while some will go through the entire life cycle
rather quickly
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A lot of
companies withdraw a lot of the support that they had for their products and services in the
maturity and the growth stages
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Migration
drives them to more popular industries and products in different stages
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