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Explain the stages of the Product Life-Cycle?

Marketing Communications Planning Marketing Management Marketing Mix Marketing Strategy Brand Management
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Question added by Mohamed Hendy , Commercial director & Co- founder , The matchers
Date Posted: 2016/03/15
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Deleted user
by Deleted user

An alternative is the5-6 stage model:

  1. Initial stage
  2. Growth
  3. Maturity
  4. Saturation
  5. Decline
  6. Relaunch (if applicable)

Explenation: 

1. Initial stage:

  • High cost for marketing & advertisement, creating demand
  • Slow sales volume, little turnover, little profit
  • Little or no competition

2. Growth stage

  • Increasing sales and profit
  • Lower costs due to increased production
  • Increasing competition (free-riders, me-too-products)
  • High costs for advertisement

3. Maturity stage

  • Highest profitability and market share
  • Sales volume peak
  • Stagnation, little or no mentionable growth

4. Saturation stage

  • Stagnation
  • Decreasing profit

5. Declining stage

  • Market and market share decrease
  • Little or no profit
  • Product is "dying"

6. Relaunch

  • Modification and repositioning of the product

Noluthando Ndhlovu
by Noluthando Ndhlovu , Check in agent , South African Airlink

Initial stage, growth stage, maturity stage and the declining stage.

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