Final answer:
The product life cycle includes Introduction, Growth, Maturity, and Decline stages. It is essential for predicting product longevity, planning marketing strategies, and making investment decisions.
Step-by-step explanation:
The product life cycle comprises four stages: Introduction, Growth, Maturity, and Decline. At the Introduction stage, a product is launched in the market. This is often coupled with significant marketing efforts to establish a market presence. During the Growth stage, the product's sales and profitability begin to increase. There is wider market acceptance, and competition starts to develop. In the Maturity stage, the product's sales growth slows down as it reaches peak market penetration. Finally, in the Decline stage, the product faces decreased demand, possibly due to market saturation, technological advancements, or shifting consumer preferences, leading to a reduction in sales.
A product's life cycle starts as soon as it is introduced to the market. Marketing researchers use this framework to predict a product's longevity, plan marketing strategies, make investment decisions, and introduce appropriate changes or extensions to the product to extend its life cycle. It is through understanding a product's life cycle that businesses can better adapt their strategies and products to meet market needs.