Introduction growth maturity and decline life cycle

Business Cycles ; Industry Life Cycle The theory of a product life cycle was first introduced in the s to explain the expected life cycle of a typical product from design to obsolescence, a period divided into the phases of product introduction, product growth, maturity, and decline. Life cycle is primarily associated with marketing theory. The introduction of a new product can be broken down into five distinct parts: Idea validation, which is when a company studies a market, looks for areas where needs are not being met by current products, and tries to think of new products that could meet that need.

Introduction growth maturity and decline life cycle

Share on Facebook Products go through a life cycle, which includes five stages: While the length of the life cycle will vary depending on the product, knowledge of the cycle is important to develop appropriate marketing strategies for each stage and to compare products at the same stage in the life cycle, according to Net MBA, the website for the Internet Center for Management and Business Administration.

Development The development stage is the period from idea until the product is released to the market. This can last years, depending on the product, and there are no sales during this period. The experts at Net MBA describe this as the "incubation" phase.

Introduction Introduction is the phase during which a product is launched into the market. The company tries to build brand awareness and a market for the product. Pricing during this time might be low to build market share rapidly or high to recover development costs, according to Quick MBA.

Promotion is aimed at early adapters and distribution is selective, according to Net MBA. Growth In the growth stage, the firm continues to grow market share and brand awareness. According to Quick MBA, quality is maintained, and additional features might be added.

Distribution channels are increased and promotion is aimed at a wider audience. Price may be maintained if demand is high or lowered if necessary to capture additional market share. When competitors enter the market, often during the later part of the growth stage, price competition or increased promotional costs may be required to convince consumers that the firm's product is better than that of the competition, according to Net MBA.

Sales continue to increase but at a slower rate. Promotion costs are less, because brand awareness is already strong. Price reductions may be needed to retain share against competition, and incentives may be required to retain shelf space.

Product features may be enhanced to differentiate it from competitors, and advertising will emphasize this differentiation, Net MBA says. Decline Eventually, sales decline as consumer tastes change or the product becomes obsolete. As sales decline, the firm has several options, according to Net MBA.

It can maintain the product, possibly rejuvenating it by adding new features and finding new uses; it can harvest the product, reducing costs and continuing to offer it, possibly to a loyal niche segment; or it can discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to continue the product.

The Product Life Cycle About the Author Randi Hicks Rowe is a former journalist, public relations professional and executive in a Fortune company, and currently a formation minister in the Episcopal Church.

She has a bachelor's in communications, a master of arts in Christian education and a master of business administration.Sep 24,  · As a business leader, you’re familiar with the product life cycle: introduction, growth, maturity, and decline.

Now, consider this: does the accompanying marketing life cycle get as much. Product Life Cycle (PLE): Introduction, Growth, Maturity and Decline! A product has a life cycle in much the same way a living organism does.

We are born, then we grow and become matured and at last we die. In the same way, a new product is introduced to consumers, it grows and matures and when it.

The four stages included in the product life cycle are introduction, growth, maturity, and decline.

Introduction growth maturity and decline life cycle

This cycle is extremely important for managers to monitor in order to plan an effective strategy for their business.

The Product Life Cycle is the series of phases a product moves through in its lifetime, which include introduction, growth, maturity, and decline. This article will provide descriptions of each of the four stages, examples of products in each stage, and strategic implications to .

The growth of an industry's sales over time is used to chart the life cycle. The distinct stages of an industry life cycle are: introduction, growth, maturity, and decline.

After the Introduction and Growth stages, a product passes into the Maturity stage. The third of the product life cycle stages can be quite a challenging time for manufacturers. In the first two stages companies try to establish a market and then grow sales of their product to achieve as large a share of that market as possible.

Product Life Cycle (PLE) : Introduction, Growth, Maturity and Decline