cycle
INTRODUCTION
The theory of a product life cycle was first
introduced in the 1950s to explain the
expected life cycle of a typical product from
design to its end, a period divided into the
phases of product introduction, product growth,
maturity, saturation and decline. The goal of
managing a product's life cycle is to maximize
its value and profitability at each stage. Life
cycle is primarily associated with marketing
theory.
DEFINITIONS
INTRODUCTION STAGE
GROWTH STAGE
e the market has accepted the product, sales begin to rise& pro
er its 2nd stage.
h faster growing sales.
market grows, profits rise but attracts the entry of new competi
al healthy profits.
is wider distribution.
lopment costs are recovered.
MATURITY STAGE
Declining sales growth.
Saturated markets.
Extending product line.
Weaker competitors start to leave the
market.
Cash flow should be strongly positive.
Saturation Stage:
This is the period of stability. The sales of the product
reach the peak and there is no further possibility to
increase it.
Saturation of sales
It continues till substitutes enter into the market.
Marketer must try to develop new and alternative uses
of product.
DECLINE STAGE
This is the final stage , sooner or later actual sales begin
to fall under
the impact of new product competition & changing
consumer behavior.
More competitors leave the market.
Excess capacity &rising unit costs .
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