Like living beings, the products are mortal as well. Every product has a life, shorter or larger. Each of them passes through four stages of their life. Source: http://www.researchomatic.com/product-life-cycle-7395.html

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2. Description:
Like living beings, the products are mortal as well. Every product has a life, shorter or larger. Each of
them passes through four stages of their life. This process is called as product’s life cycle. The process
starts with the inception of the product as introduction and then goes into the growth stage. The growth
stage is followed by the maturity and subsequently comes to the last stage that is decline. The
promotions and marketing mix have a significant impact on the product life cycle. This cycle can be seen
by the following figure:
Introduction Stage: This is the first stage of the product life cycle. Here, the product enters the market.
The emphasis of the organization is to create the brand awareness amongst the consumers and get a
market share for it. The product is introduced in market with the four Ps of marketing in which:
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Product gets branded and the features are publicized to consumers. Also patents and copy
rights are reserved.
Pricing strategy is chosen to enter the market. Mostly the pricing strategy is low penetration to
gain market share rapidly.
Placement is at selective places in the initial phase to get closer to the target market only.
Promotions done to increase the awareness of the product and to increase the market share.
Growth Stage: It is the second stage of product life cycle. Here the product has gained momentum in the
market, but the emphasis of the organization is on the further growth: in the market share and
acceptability among consumers.
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Product quality is made better and additional characteristics are added.
Pricing strategy is almost the same as the previous step and firm enjoys greater revenues.
Placement of the product increases as the product gains popularity in the market.
Promotional scales are broadened to reach to a greater market audience.
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3. Maturity Stage: In the growth phase the further growth and increase in the revenues ceases. The
competition starts flowing in. The main strategy is to maintain the market share and profits.
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Product characteristics are made better for differentiating it from competitors.
Price levels are decreased to compete effectively.
Place becomes crucial. Incentives are given to retailers to maintain their products placements.
Promotions strategy is changed to differentiate it from the competitors.
Decline Stage: This is the last stage of a product where the sales and the market share of the product
starts dropping. Here the firm can either keep up with the product with same prices and better
characteristics reduce the prices than competitors’ or they can simply discontinue the product.
Reference: http://www.researchomatic.com/product-life-cycle-7395.html
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