The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business.

☛ INTRODUCTION

In the Introduction stage of the product life cycle, a product or a service is introduced to the market. Consumers are testing the product in this phase.

☛ GROWTH

After a product is introduced in the market, consumers become more interested in it. This is called the Growth stage of the product life cycle. Sales are increasing and competitors are emerging as well. Products become more profitable and companies form alliances, joint ventures, and takeovers.

☛ MATURITY

The market has reached saturation. Some producers at a later stage of the Maturity stage of the product life cycle begin to leave the market due to poor profit margins. Sales dynamics is beginning to decrease.

☛ DECLINE

Continuous decline in sales signals entry into the Decline stage of the production life cycle. Competition is taking over your market share at this point. Economic and production conditions are becoming unfavourable.