Product Life Cycle Stages in Detail
Development Stage
The development stage marks the beginning of a product's life cycle. During this phase, the product is not yet available on the market.
Key characteristics of the development stage include:
- Research and development activities
- Prototype creation and testing
- No sales revenue generated
- Accumulation of development costs to be recovered later
Example: A tech company investing in research to create a new smartphone model, developing prototypes, and conducting extensive testing before launch.
Introduction Stage
The introduction stage begins when the product is launched in the market.
Notable aspects of this stage include:
- High advertising costs to create product awareness
- Initial sales begin, but may be slow
- Potential for negative profits due to high marketing expenses
Vocabulary: Market penetration - The extent to which a product is recognized and bought by customers in a particular market.
Growth Stage
During the growth stage, sales begin to rise significantly.
Key features of this stage include:
- Continued high advertising costs
- Increasing sales and market share
- Potential for profit if development and advertising costs have been recovered
Highlight: The growth stage is critical for establishing a strong market position and building brand loyalty.
Maturity Stage
The maturity stage represents the peak of a product's life cycle.
Characteristics of this stage include:
- Sales reach their highest levels
- Reduced advertising costs as the product is well-known
- Typically the most profitable stage of the life cycle
Quote: "The maturity stage of product life cycle is often the longest and most competitive stage, requiring businesses to differentiate their offerings to maintain market share."
