PRODUCT LIFE

CYCLE

VARIOUS STAGES

OF PRODUCT

LIFE

Stage

The introduction stage of a product's life cycle is when company can build an awareness of product or service in certain markets and develop a specific market. At the introduction stage, you should focus on the following marketing factors:• pricing• distribution• PromotionAt this stage, sales are very less at this stage and no profits or losses might be occurred.

EXAMPLES

GROWTH STAGE

Company’s sales and profits starts increasing and competition also begin to increase. The product becomes well recognized at this stage and some of the buyers repeat the purchase patterns. During this stage, firms focus on brand preference and gaining market share. It is market acceptance stage. New features and improvements in product quality may be done. All this is done to compete and maintain the market share.Price is maintained or may increase as company gets high demand at low competition or it may be reduced to grasp more customers.

EXAMPLES

MATURITY STAGE

During the maturity stage, promotion cost is less due to brand recognition and brand loyalty. The price is usually lowered during the maturity stage due to high competition. Consequently, the profitability of the product is lower during this stage even though the sales volume is high. this stage but needs nurturing. The entrepreneur must make a strong effort to differentiate product from the competitor’s product. Many competitors enter the market with similar products at lower prices. An entrepreneur must maintain a strong brand loyalty and market share by using creative marketing and pricing strategies.

EXMPLES

DECLINE STAGE

During the decline stage, the sales deteriorate with each passing day. The price also falls during the decline stage, making it very difficult to recoup the original cost of the product and the increasing warehouse costs. The lack of consumer interest may be the deciding factors to liquidate the product to discounters. An entrepreneur should not wait until a product reaches the decline stage before introducing a new or modified product. There is no competition.

EXAMPLES

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YOU