describe the concept of product life cycle.explain various stages of product life cycle?

Dear Aspirant,

Product Life Cycle also known as PLC is an important concept in business. It is a process of the product from introduction in the market until it declines or removed from the market. There are four stages in Product Life Cycle which have explained below

Introduction- It is when the product is introduced in the market for the first time.  Marketing is high at this time. Company focuses more on promotion. Spends heavily and cannot predict whether the product will survive or not. The main objective in the stage is to get more and more consumers know about the product

Growth- In this stage, people are buying the product. The product is giving good amount sales volume and revenue. More focus is on sales volume than profit. The competitors feel that the product is acquiring the market and hence companies have to look upon competitive strategies.

Maturity- The product has already known by the people. So company spends less on advertising but more on innovation in order to survive. The profits get saturated if innovation is not taken care of.

Decline- Although company try the way best possible for the product to be in the market, the product has to decline as other products in the same range are acquiring the market. It may be the product of same company or competitors, but the product gives less sales as people don't buy it. Lack of product innovation is the main aspect why product declines.

Hope this helps