Final answer:
The product life cycle comprises four key stages: Introduction, Growth, Maturity, and Decline. Each stage marks a different phase in a product's journey from market launch to eventual discontinuation, guiding business strategies accordingly.
Step-by-step explanation:
The term 'product life cycle' refers to the stages a product goes through from when it is first introduced to the market until its eventual decline and withdrawal from the market. The four major stages of the product life cycle are:
- Introduction – The product is launched, and marketing efforts are made to 'introduce' it to potential customers. Sales are typically low as the market becomes aware of the product.
- Growth – If the product is successful, this stage sees an increase in sales and market share, as the product gains acceptance and begins to take hold in the market.
- Maturity – Sales growth slows as the product reaches peak market penetration. The market becomes saturated, and competition is high.
- Decline – Eventually, the product faces a decrease in sales and market presence, which may be due to market saturation, technological advancements rendering the product obsolete, or changing consumer preferences.
Understanding these stages can help businesses make strategic decisions about product development, marketing, and management over the product's life cycle.