Phaseg Consult

PRODUCT LIFE - CYCLE Is the process a product goes through from its launching to the market until eventual possible disappearance with certain products / because is not all products that disappears. Product goes through four stages: Introduction, Growth, Maturity And Decline.

Introduction - Introduction is the lunching of the product, the first stage of the product life cycle. The product is launched to the market to capture the attention of target audience, as consumers are not familiar with it and demand is low. Price of the product is likely high in certain cases due to production and distribution costs; due to investing in advertising and promotion to raise product awareness to generate consumer interest.

Growth - During the growth stage, the product begins to gain popularity and experiences increase in sales and profits. Furing this stage there is an increase in the number of competitors in the market. Is critical moment, focus on promoting and improving product in order to continue growing.

Maturity - Maturity stage is the longest of the product life cycle and demand begins to stabilize and competitors are well established. The price of the product may decrease further and companies have to focus on maintaining customer loyalty and improving product quality to maintain their position in the market.

Decline - The decline stage is the period when the product begins to lose popularity and sales. At this stage, demand decreases and the strongest competitors succeed in eliminating the product from the market. Not all products go through all stages of the life cycle. Some products may have a short lifecycle and will never reach the mature stage, while others may have a long lifecycle and remain at the mature stage for many years.

It is possible for a product to return to the introduction /growth stage by implementing new marketing strategies.

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