The product life cycle is very essential concept in the marketing. The life cycle can be divided into several stages as the products continue their lives. As the consumers buy various products throughout the year, the products can go through various stages before it ultimately dies and goes out of the market.
Basic Concept of the Product Life Cycle
Most of the companies make their strategies according to the life span of the products. Different products may have different life spans, some may have longer ones but some may have a very limited lifespan. The investment strategies of the business will surely depend on the product life cycle. If a new product is developed, the investment can be high for creating the opportunities for the business to grow.
What are the Stages of the Product Life Cycle?
The product life cycle have 4 different stages that can be identified clearly;
When the product is just launched, the volume of sales will not increase suddenly. You are required to make efforts for making the consumer aware of the benefits of the products and the services. Some of the companies can announce their products before they are actually launched in the market. Sometimes these announcements are helpful but sometimes the competitor’s activities can go in the adverse way and can destroy the element of surprise in your new product. The initial distribution should start in this stage and the negative profits can be observed. In the introduction stage, the elements of the marketing mix can be implemented :