What is a Product Lifecycle?
A product life cycle is the amount of time a product goes from being introduced into the market until it's launched in the market. There are five stages in a product's life cycle— development, introduction, growth, maturity, and decline. The process of strategizing ways to maintain a product continuously is called product life cycle management.
What are the stages in a Product Lifecycle?
There are five stages in the life cycle of a product:
- Development: The product development stage is referred to as "the valley of death." This stage requires investment with no corresponding revenue.
- Introduction: This phase generally includes a substantial investment in advertising and a marketing campaign focused on making consumers aware of the product and its benefits.
- Growth: This is characterized by growing demand, increased production, and expansion in its availability.
- Maturity: This is the most profitable stage, where the costs of producing and marketing decline.
- Decline: A product takes on increased competition as other companies emulate its success—sometimes with enhancements or lower prices.