Product life cycle and decisions about extension strategies

The product life cycle consists of several distinct stages that a product goes through from its introduction to its eventual decline. The stages of the product life cycle are: 1. Introduction: This is the stage where the product is launched in the market. Sales are typically low, and marketing efforts focus on creating awareness and generating demand. 2. Growth: In this stage, the product experiences rapid sales growth as more customers become aware of it and adopt it. Competitors may enter the market, and businesses invest in marketing to build brand loyalty and market share. 3. Maturity: The maturity stage is characterized by stable sales and market saturation. Competition is intense, and businesses focus on maintaining market share, expanding distribution, and differentiating their product through marketing and customer loyalty programs. 4. Decline: The decline stage occurs when sales start to decline due to changes in market preferences, technological advancements, or the emergence of substitute products. Businesses may choose to discontinue or reposition the product, or they may extend its life through revitalization efforts. Understanding the stages of the product life cycle helps businesses anticipate market dynamics, plan product strategies, and allocate resources effectively.