The life cycle or product life cycle (CVP) refers to the evolution of sales of a certain item while it remains on the market.
It is essential to bear in mind that the conditions of sale of a product or service will change over time. The environment and strategies marketing They change the different circumstances that will alter the sales of the product. Said alterations are what will make up its life cycle, where all products (also understood as "services") have a beginning and an end.
Stages in the life cycle of a product
Specifically, the product life cycle is made up of 4 fundamental stages:
- Introduction. The new product is introduced on the market. Marketing strategies are rare, as it is not yet known how the target market might react. As a consequence, sales are also low, so that even in the first moments there may not be a profit.
- Increase. Skills are acquired and the market is known. Sales start to be higher and profits are already being made significantly. The company gains recognition from the market in which it operates, and gains confidence among buyers.
- Maturity. Sales are considerably higher than in the previous stage. It is understood that the company is mature in the mercado, knows it perfectly and knows what practices it should offer you. However, there comes a certain point where it is no longer convenient for you to be in it and you decide to abandon it or put it aside. You start to have sales problems, the solution of which lies in a new relaunch of the product.
- Slope. This is the final stage of the product. Here, too, a product relaunch may arise or even re-adapt it to get a new product. Sales fall and consumers are no longer in the business of consuming it.