What defines the product lifecycle?

The product lifecycle is defined by the progression of a product through distinct phases: introduction, growth, maturity, and decline. This concept helps businesses understand the evolution of a product in the market and manage strategies accordingly at each stage.

During the introduction phase, the product is launched, and awareness is built among potential customers. This is followed by the growth phase, where sales begin to increase significantly as the product gains acceptance. Maturity signals a slowdown in sales growth as the product reaches market saturation, and finally, the decline phase occurs when sales decrease due to factors like market saturation or competition.

Understanding these stages allows companies to make informed decisions about marketing, production, and resource allocation throughout the lifecycle of the product, optimizing its profitability and longevity in the marketplace.