The Product Life Cycle

The product life cycle describes the stages a product goes through from its introduction to the market, through its growth and maturity, and finally to its decline. Initially, sales are low as the product is launched; then, as more people learn about it, sales increase rapidly. Eventually, sales level off as most potential customers have bought it, reaching maturity. Over time, newer products or changing preferences cause sales to decline, leading to the product's phase-out. Understanding this cycle helps businesses plan marketing strategies, manage inventory, and decide when to update or discontinue products.