What does the product lifecycle describe?

The product lifecycle describes the stages of a product from inception to decline. This concept is crucial in understanding how a product evolves over time through various phases: introduction, growth, maturity, and eventual decline. During each of these stages, different marketing strategies and business decisions are necessary to maximize a product's potential.

In the introduction stage, awareness and market acceptance must be built, while the growth stage focuses on expanding market share and optimizing production. The maturity stage often sees stabilization in sales and increased competition, requiring strategies to sustain profitability. Finally, in the decline stage, businesses may need to consider product discontinuation or repositioning.

Understanding the product lifecycle helps businesses make informed decisions regarding pricing, marketing, and inventory management throughout these stages to ensure the product remains competitive and profitable in the marketplace.