Explain the meaning and stages of product life cycle.
Every product passes through a number of stages, namely, introduction, growth, maturity, decline and abandonment. These stages are collectively referred to as Product Life Cycle.
Product, like people, have a certain length of life, during which they pass through different stages. For some the life cycle may be as short as a month, while for others it may last for quite a sufficiently long period. The examples may be of a trendy dress or an electrical appliance.
From the time the product idea is born, during its development, and up to the time it is launched in the market, a product goes through the various phases of its development. Its life begins with its market introduction; next it goes through a period during which its market grows rapidly. Ultimately, it reaches maturity stage after which its market declines and finally the product dies.
The product life-cycle may move through the following five stages:
- Introductory, pioneering or development stage.
- Growth or the market acceptance stage.
- Maturity stage.
- Decline stage.
- Abandonment stage.
It is worth noting that the duration of each stage is different among products. Some products take years to pass through the introductory stage, while others may be accepted in the market in a few weeks. Further, not all products pass through all stages, some fail in the initial stages, others may reach the maturity stage after a long time.
In virtually all cases decline and possible abandonment are inevitable because (i) the need for the product disappears; (ii) a better or less expensive product is developed to fill the same need; or (ii) a competitor does a superior marketing job.
