The document describes the four stages of a product's life cycle: introduction, growth, maturity, and decline. In the introduction stage, a new product enters the market with only one brand available at high costs and low profits. In the growth stage, competition increases as more brands enter and firms work to improve features while earning profits. During maturity, many competing brands fight for customers through promotion, branding and packaging while profits fall. Finally, in decline, an older product faces replacement by newer innovations and companies drop the product when it is no longer sustainable.

1. Product Life Cycle
Fours stages of sales and profit performance in
which all brands of a product progress

2. Product Life Cycle
Introduction
• Brand new product enters market
• Only 1 brand available to purchase
• No competition
• High costs of producing and marketing
usually result in loss or low profits
• Examples: vibram 10 finger shoes

3. Product Life Cycle
Growth
• Other firms see opportunity
• Several brands become available to purchase
• Firms attempt to improve product by adding
features
• Most companies earn profit at this stage
• Examples: cell phones, tablets

4. Product Life Cycle
Maturity
• Large # of customers
• Many brands competing with similar features
• Customers have difficulty identifying differences
among brands but may have brand-loyalty to one
• ***Promotion of brand name, packaging, specific
image, and price is crucial at this stage***
• Profits usually fall even though sales may rise
• Examples: cars, personal care products, regularly
used products we don’t give much thought to
• Firms respond by searching for new markets to enter

5. Product Life Cycle
Decline
• Many products stay here a long time
• New, better products have replaced
• Companies cannot improve old product enough
to compete (little $ spent on marketing)
• Companies drop when product no longer sustains
• New use for old product may “save” declining
product (ex. Baking soda used to remove odors)