Stages in the Product Life Cycle

2007 Words9 Pages
Stages in the Product Life Cycle Abstract This paper defines and discusses in depth the four stages in the Product Life Cycle. Most successful products pass through these four stages which are Introduction, Growth, Maturity and Decline and the following will help to distinguish the transition between each stage while presenting their differing components. Additionally, it will display the direction in which companies take when faced with being in each varying stage. An understanding of the outcome of each stage and the development process of all of the four stages will be exposed in this paper. Products are also utilized to show examples in their current stage. In closing, the paper will express critic’s opinions and information to…show more content…
Profits arise due to an increase in output and possibly better prices. At this stage, it is cheaper for businesses to invest in increasing their market share as well as enjoying the overall growth of the market. Accordingly, significant promotional resources are traditionally invested in products that are firmly in the Growth Stage (Anderson & Zeithaml, 1984). The growth phase offers the satisfaction of seeing the product take-off in the marketplace. This is the appropriate timing to focus on increasing the market share. If the product has been introduced first into the market then it is in a position to gain market share relatively easily. A new growing market alerts the competition’s attention. The company must show all the products offerings and try to differentiate them from the competitors. A frequent modification process of the product is an effective policy to discourage competitors from gaining market share by copying or offering similar products. Other barriers are licenses and copyrights, product complexity and low availability of product components (Product Life Cycle, 2011). Promotion and advertising continues, but not in the extent that was in the introductory phase and it is oriented to the task of market leadership and not in raising product awareness. This period is the time to develop efficiencies and improve product availability and service. Cost efficiency, time-to-market, pricing and discount policy are major
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