Definition of Product Life Cycle
The stages a product goes through from when it is first introduced to the market until it is discontinued.
Explanation of Product Life Cycle
The product life cycle (PLC) is a model that describes the stages a product goes through from its introduction to the market to its eventual decline and withdrawal. The PLC consists of four main stages: introduction, growth, maturity, and decline. During the introduction stage, the product is launched, and marketing efforts focus on building awareness and generating interest. The growth stage is characterized by increasing sales, market acceptance, and expanding distribution. In the maturity stage, sales growth slows, competition intensifies, and marketing efforts focus on differentiation and retaining market share. The decline stage occurs when sales decrease, and the product faces obsolescence or reduced demand. Understanding the product life cycle helps businesses develop appropriate marketing strategies, allocate resources effectively, and make informed decisions about product development, pricing, and promotions. By anticipating the different stages and their challenges, businesses can optimize their product management and maximize profitability throughout the product’s life.