3. WHAT IS PRODUCT LIFE CIRCLE ?
A new product progresses through a sequence of stages from
introduction to growth, maturity, and decline. This sequence is
known as the product life cycle and is associated with changes
in the marketing situation, thus impacting the marketing strategy
and the marketing mix.
6. INTRODUCTIONSTAGE
Introduction: When the
product is brought into the
this stage, there's heavy
activity, product promotion and
product is put into limited
few channels for distribution.
take off slowly in this stage.
is to create awareness, not
7. GROWTHSTAGE
The second stage is growth:- In this
stage, sales take off, the market
knows of the product; other
companies are attracted, profits
begin to come in and market shares
stabilize.
8. MATURITY STAGE
The third stage is maturity:-
Where sales grow at slowing rates
and finally stabilize. In this stage,
products get differentiated, price
wars and sales promotion become
common and a few weaker players
exit.
9. DECLINE STAGE
The fourth stage is decline:-
Here, sales drop, as consumers
may have changed, the product is
no longer relevant or useful. Price
wars continue, several products
are withdrawn and cost control
becomes the way out for most
products in this stage.