What are the stages of the product life cycle?

The stages of the product life cycle consist of a framework that describes the progression of a product in the market from its inception to its eventual decline. The correct sequence is often defined as introduction, growth, maturity, and decline.

In the introduction stage, a product is launched, and awareness is built. During the growth stage, sales start to increase as more consumers become aware of the product and it gains market traction. This is followed by the maturity stage, where the product reaches peak sales and market saturation; this phase is characterized by fierce competition and the need for differentiation. Finally, the decline stage occurs when sales begin to decrease due to market saturation, changing consumer preferences, or the emergence of substitute products.

This structured approach enables businesses to strategize and implement appropriate marketing efforts, production factors, and financial planning tailored to each phase of the product’s market existence, making it essential to understand the life cycle in context to procurement and supply environments.