5 Examples of the Life Cycle of a Product
- Introductory phase: This is when people first see or hear about a new product. Therefore, they begin to look at advertisements both in print and on television, this is the phase that entrepreneurs must take advantage of to recoup expenses at the time they set prices. By launching a new phone withadvanced technology, they can do so with 10% or 15% above the price of other cell phones.
- Growth phase: This is defined as the stage that products have when their sales and profits begin to increase. For this reason it is important that the company maintain the price of the products since in this way it will maximize its profits, it is also essential to maintain the quality of the product.
- Maturity stage: it is when other companies, seeing success, begin to introduce similar products to the market but at a lower price. For this reason, sales will begin to decline.
- Stage of decline: This is when the demand for the product fades for a time since the new products overshadow it, for this it is important that the company tries to sell the product at low prices. Companies must keep the product on the market but if instead of profits they make losses it is best to discontinue it.
- Prolonging the life of products can be done by lowering their price or further improving their quality.