The definition of the product life cycle consists of the evolution and sales history of a product or service in a market over time. Thus, due to the meaning of the product life cycle, we understand that the monitoring of sales in the same market is directly linked to marketing.
In addition, for its part, the life cycle of a product is encompassed within what we know as marketing mix, since in some way its duration depends on the distribution and promotion strategies that have been given.
Stages in the life cycle of a product
During the time that a good or service remains on the market, we differentiate four phases of the life cycle of a product:
- Introduction: it is the moment when the product is launched on the market. The benefits are low and the costs high. Expectations may be minimal but experts believe that the key is continued promotion.
- Growth: profits start to be favorable, costs start to stabilize. The prospects for the future are positive. Sales increase and the customer's valuation and interest in purchases is observed.
- Maturity: it is the consolidation stage. The benefits are high and there is some stability.
- Decline: Product sales decline and profits stagnate. It is time to reinvent yourself, to determine if the product is retired or if on the contrary there is a change in strategy to update it and seek new competitive advantages.