Meaning of Product Life cycle
product life cycle is described as the different stages of a product goes in its life span. It starts with the introduction of a product in the market. It ends at when product disappear in the market.
Product life cycle tells about the position of a product in the market. Stages in product life cycle Introduction, Growth, Maturity and Decline. Each stage has a role in the marketing of the product.
Importance of Product Life cycle
- Product Life cycle helps in planning by providing information about the market.
- Product Life cycle provides the data for decision making.
- Product Life cycle helps in forecasting. How a product will perform in the market.
- Product Life cycle assists for calculation of profit and deciding the profit margin
- Product Life cycle helps in development of new product.
- Product Life cycle tells the decline of a product. So, we can launch the new product at a Perfect time
Product life cycle stages
- Introduction – when the new product lunch in the market
- Growth – When the market starts buying product. Huge improvement in sales
- Maturity – When the product is well established in the market
- Saturation – The product has reached a maximum level of demand and cannot grow further
- Decline – Product demand starts falling and sales volume declines
Product life cycle Examples
iPhone x as an example of Product life cycle. iPhone x lunch in November 2017 at that time the iPhone x is in the introduction phase. Only real fans are buying the phone. but in January 2018 the price of iPhone x drops.
More and more people start buying the iPhone. This is the growth stage. In mid-2018 the product reaches to the maturity level. when the sales are not increasing. And start to Decline the sales at that time iPhone launch there new product iPhone xs max.