When we talk about product or services, we are talking about the stages that the product or service goes through in its life. The 4 life cycles of product and services are: 1) Introduction 2) Growth 3) Maturity 4) Decline Each stage has different characteristics that will be discussed in this thread. The life cycle of a product or service is important to understand because it can help businesses make decisions on when to introduce new products or services, how to price them, and how to market them.
1) Introduction: This is the stage where the product or service is first introduced to the market. There is usually little or no competition at this stage, and the product or service is often priced high to recoup the costs of research and development. Marketing efforts at this stage are focused on creating awareness of the product or service and educating potential customers on its features and benefits.
2) Growth: This stage is characterized by increasing sales and profits as more and more customers are attracted to the product or service. Competition typically begins to increase at this stage as well, and companies may need to lower their prices to stay competitive. Marketing efforts at this stage are focused on continuing to build awareness and differentiating the product or service from its competitors.
3) Maturity: This is the stage where the product or service has reached its peak in terms of sales and profits. Competition is typically fierce at this stage, and companies often need to focus on cost-cutting measures to maintain profitability. Marketing efforts at this stage are focused on maintaining market share and loyalty among existing customers.
4) Decline: This is the stage where the product or service is no longer growing and is in decline. Sales and profits typically decline at this stage, and competition is typically fierce. Companies may need to exit the market altogether or focus on niche markets. Marketing efforts at this stage are typically focused on maintaining market share and loyalty among existing customers.