Product Life Cycle

• What is the product life cycle?

  The series of stages a product goes through
• Why do most products experience a fall in sales?

  Because they do not last forever
• What are the stages of the product life cycle?

  1. Research and development
  2. Introduction
  3. Growth
  4. Maturity
  5. Saturation
  6. Decline
• What occurs during the research and development stage?

  Investing in market research for opportunities
• What might a pharmaceutical company research during development?

  A drug that might help cure a disease
• What happens during the introduction stage of a product?

  The product is launched to the market
• Why is marketing important during the introduction stage?

  To inform consumers about the new product
• What typically happens during the growth stage of a product?

  More customers discover and buy the product
• How does the growth rate change after the introduction stage?

  The rate of growth tends to increase
• What characterizes the maturity stage of a product?

  The market for the product is considered mature
• What happens to sales during the maturity stage?

  Sales rise at a decreasing rate
• What is the saturation stage of a product life cycle?

  Sales have reached their peak and remain steady
• What does it mean when a product is in decline?

  Demand for the product begins to fall
• What factors can lead to a product's decline?

  Changes in fashion, tastes, and competition
• What does a diagram of the product life cycle typically show?

  • Stages: Research and development, Introduction, Growth, Maturity, Saturation, Decline
  • Sales and profit trends over time