The life cycle of the product is the evaluation of the products offered by a company when they are already in the market.
The life cycle of a product is usually divided into four phases or stages.
Introduction stage. It is the moment in which the product is introduced in the market. The volume of sales is low, since it is not yet known in the market. The costs are very high and the benefits invaluable. At this stage it is very important to invest in promoting the product.
Growth stage. In this stage sales increase, as the interest of the client increases. The benefits begin to grow and the product needs a lot of support to maintain itself.
Stage of maturity. The growth of sales slows down and stabilizes in the market. The product is established and consolidated in the market and the benefits are high.
Stage of decline. Sales begin to decrease significantly and the product prepares to exit the normally saturated market. The main cause is usually obsolescence.
Answer:
The product life cycle is a theoretical model that includes the stages of introduction, growth, maturity, and decline.
