Product Life Cycle

Many products enter in market some lasts for long time and others disappears in a small span of time. This cycle of product birth and death in the language of marketing is known as product life cycle. Product life cycle consist of four stages namely introduction stage, growth stage, maturity stage and decline stage.

At each stage organization adopt different strategies to take the benefit of opportunities available as well as to minimize the threats.Every product have different life cycle from other some product resist for long time duration like Coca Cola and some products out of market within very short span of time like fashion which change with fast pace.

Introduction Stage

In this stage expense of products are high and profits are very low, organization focus on product quality for reputation, setting best prices that customer can afford, selecting appropriate distribution channels and promotion of the product.

Growth Stage

In this stage the graph of revenues increase but profits are low due to the expenses on activities like promotion and distribution. Product pricing remain stable to capture the market share. New features are added in the product to attract new customers and retain the existing one, the competition is low at this stage as not much activities are noticed by competitors.