What is the theory of the product life cycle?
The theory of the product life cycle uses an analogy between creating and creating a product on sale and a simplified view of organic life cycles. The cycle of life of living things can be seen in four basic, harsh stages: birth, growth, maturity and possible decline in death. Simple analogy uses this cycle as a model for the phases through which the product passes on the market: Introduction, growth, maturity and then decrease to withdraw from the market. Other phases may be included in the product theory of the product, such as "saturation" between maturity and decline periods. After birth, the form of life grows and develops, often ages and changes in different ways to move towards maturity. At a certain age, the maturity and form of life are essentially culminating, sometimes it holds this level on the plateau; This period can be short for some living things. Maturity leads to an inevitable decline in against old age, which eventually culminates in the death of life form.
The theory of the product life cycle is governed by a very similar pattern, but is used to indicate a product or good that is developed and offered for sale to customers. The birth of the product is often referred to as its introduction, and this begins when it first shows potential users or customers. The product growth follows because its customers start buying and the sale starts to bake. This is the time of regular income, although it is not the peak of success.
At a certain point according to the theory of life cycle of the product, this growth reaches zenite and the product moves into maturity. This is the phase in which sales are maximized and the item effectively reached the upper limits in terms of revenue and user base. However, at a certain moment the product moves into a decline, as revenue decreases due to the loss of interest or competing product. In the end, this ends with a withdrawal because the product is no longer considered profitable or required and the sale will end.
to the theory of life cycle PRSurviant steps can be added depending on the views of the analyst. For example, "saturation" is often considered a period after the product has reached maturity, but before it begins to decline. This basically represents a plateau on sale that extends maturity as soon as the market is saturated with the product.