What is the product life cycle?
The term product life cycle is used in the marketing world to determine the different phases through which any product goes through. Every product that is introduced to consumers goes through the same basic cycle. By studying the product life cycle, traders can evaluate the effectiveness of the product.
All products begin with the market. This stage occurs when the product is first placed on the market. In general, the price of the product at this point is high and consumer demand for the product is low. After observing the sales for a short time, traders may decide to pull the product out of the shelves or work to create a product demand.
Products that move to the second phase must be developed and sold to the growth phase . In order to perform these tasks, the price of the product must be reduced according to the current state of the economy and advertising must be launched. If the product turns out to be popular with consumers, other details begin to produce similar products. Asthe competition increases, the price of the product is generally decreasing.
The mature phase is achieved when the popularity of the product begins to disappear. Due to too many competitors, the original price of the product will decrease drastically. At this point, the market is saturated and the product is directed to the final phase: saturation and decline . As the name of the stage suggests, products that reach this level are increasingly produced for society.
Sometimes the product can get a stable consumer. For example, the WinDex® household product first introduced S.C. Johnson & Sons in 1933. This product is still popular and remains in many homes in North America. Although Windex® has undergone a complete product life cycle, it remained popular consumer AR.
There is a certain mismatch in terms of validity of the theory of life cycle of the product. Some market analysts claim not all forDukty disappears, which is the case of WinDex®. Others believe that all products, including Windex®, will completely fade at some point. For these people, such a product did not complete the entire life cycle of the product until the product disappears out of sight.
In any case, using a product of the product life cycle, traders can better understand the course that the product goes through. The information collected during the product life cycle helps manufacturers to earn the idea or cancel this concept completely. Whether the product will remain on the market if Windex® has uncertain, even if most manufacturers want this kind of endless cycle.