Product lifecycle

The product lifecycle refers to the period between a product’s introduction and when it exits the market. It has four stages: introduction, growth, maturity, and decline. Companies analyze these stages when deciding on price adjustments, refinements, and advertising budgets.

Product introductions bring higher marketing costs, but as popularity grows, sales numbers increase. A product’s lifecycle in marketing involves the best profits during the maturity stage, with solid consumer acceptance and reduced marketing costs. But when competitors bring additional ideas to the market, the lifecycle enters the decline stage, paving the way for new versions or updated marketing campaigns.