All products have a limited lifespan that follows a biological product life cycle of introduction, growth, maturity, and decline. During the introduction stage, sales are low and costs are high as a product enters the market. In the growth stage, costs decrease as sales and profits increase due to economies of scale and growing brand awareness. The mature stage sees peak sales but increased competition and lower prices. Finally, the decline stage is marked by decreasing sales, profits, and prices as a product becomes less successful over time.

1. “ All products, no matter how successful are mortal”

2. The Product Life Cycle (PLC) It is based upon the biological life cycle. Introduction Growth Maturity Decline

3. Introduction Stage Market introduction stage cost high sales volume low no/little competition - competitive manufacturers watch for acceptance/segment growth losses demand has to be created customers have to be prompted to try the product

4. Growth Stage costs reduced due to economies of scale and sales volume increases significantly profitability public awareness competition begins to increase with a few new players in establishing market prices to maximize market share

5. Mature stage Costs are very low as you are well established in market & no need for publicity. sales volume peaks increase in competitive offerings prices tend to drop due to the proliferation of competing products brand differentiation, feature diversification, as each player seeks to differentiate from competition with "how much product" is offered Industrial profits go down

6. Decline stage costs become counter-optimal sales volume decline or stabilize prices, profitability diminish profit becomes more a challenge of production/distribution efficiency than increased sales