Question

What are the four stages in the product life cycle?

Answer 1

The four stages are:

1. Introduction
- New product launch; sales grow slowly, costs/high, little or no profit.
- Focus: build awareness and trial (heavy promotion), selective distribution, may use penetration or skimming pricing.

2. Growth
- Rapidly rising sales and improving profits as customers adopt the product.
- Focus: expand market share, broaden distribution, differentiate from competitors, scale production.

3. Maturity
- Sales peak and growth slows; market becomes saturated and competition is intense.
- Focus: defend market share, emphasize brand/feature differences, cost control, promotions and loyalty programs.

4. Decline
- Sales and profits fall due to market saturation, technological change, or shifting tastes.
- Focus: reduce costs, harvest remaining profits, consider product discontinuation, niche targeting, or reinvention.