Life cycle of a product
The product life cycle describes the stages a product goes through from its introduction to its final withdrawal from the market.
The product life cycle has something in common with us, and that is the fact that we are not immortal.
Therefore, no product is going to be on the market forever (limited existence).
I say none because even though they are products that one would think would last forever, this is not the case, since in fact they are modified (evolve).
Product life cycle concept
According to the book “Marketing Strategies” by Munuera Alemán, every product undergoes an evolution from the moment it is launched on the market until it is withdrawn, an evolution that materializes in a progressive succession of stages in which the behavior of demand , competition and technology is changing.
Therefore, the life cycle of a product is a equipo of stages that follow the evolution of a product, since it is introduced, until it ceases to exist.
The traditional scheme has four stages: introduction, growth, maturity and decline.
Product Life Cycle Stages
Introduction
The introduction stage is when a new product is put on the market for the first time, before there is a demand for it.
For this reason, the units sold are scarce thanks to the low knowledge of the consumer about the product.
Growth
Since consumers know the product, sales will start to grow as a consequence.
That growth is what defines the fact that we are in the growth stage.
In other words, it is the stage that signals the increase in demand for the product.
Maturity
Maturity is the stage in which demand stabilizes, that is, there is a slowdown in growth rates. “This stage is characterized by high occupancy rates and product penetration in the market, a consequence of its intense coverage, and by high competition”
Slope
Decline is when the product begins to lose consumer appeal and sales decline.
The product begins its decline as a result of the appearance of purchasing alternatives with better benefits.
Importance of the product life cycle
The product life cycle helps us in the direction of the company because we are going to adjust our decisions depending on the stage in which the product is.
Therefore, depending on the stage, we will establish strategies aimed at achieving our objectives.
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