What are the four stages of the product life cycle?

The product life cycle is a concept that outlines the stages a product goes through from its inception to its discontinuation. The correct answer details four clearly defined stages: Introduction, Growth, Maturity, and Decline.

In the Introduction stage, the product is launched into the market, and marketing efforts are focused on building awareness and stimulating demand. Sales are typically low, and financial performance may be negative due to initial costs related to product development and marketing.

Next is the Growth stage, where the product begins to gain traction in the market. Sales start to increase rapidly as more consumers become aware of the product, leading to higher revenues and potentially greater profits as economies of scale are realized.

Following this is the Maturity stage. Here, the product reaches its peak in sales. The market may become saturated, and competition intensifies; thus, companies often need to differentiate their offerings, enhance features, or lower prices to maintain market share.

Finally, the Decline stage occurs when sales decrease as consumer preferences shift, new technologies emerge, or market saturation leads to reduced demand. At this point, companies may decide to discontinue the product or innovate to revive interest.

This sequence represents a realistic depiction of how products behave over time in a competitive marketplace, which is essential