What does 'product life cycle' refer to?

The concept of the 'product life cycle' encompasses the various stages that a product goes through from its initial conception to its eventual discontinuation. This framework typically includes four main stages: introduction, growth, maturity, and decline. In the introduction phase, the product is launched and marketing efforts are focused on creating awareness. During the growth phase, sales begin to increase as the product gains market acceptance. The maturity stage sees sales peak and market saturation occur, leading to increased competition. Finally, in the decline phase, sales diminish, and companies may decide to discontinue the product.

Understanding the product life cycle is crucial for businesses as it impacts marketing strategies, pricing, and product development decisions throughout each phase.

In contrast, focusing solely on the duration a product is sold in a retail store, the time it is advertised before release, or the life expectancy of a physical product does not capture the full scope of this concept. The product life cycle is a strategic tool that encompasses much more than these aspects, highlighting the evolution of a product in the marketplace over time.