What is the product life cycle
Posted: Wed Jan 29, 2025 10:13 am
It represents a successive change of stages through which a product passes from the beginning of its creation to its final disappearance from the market.
Each product necessarily goes through these stages. It is impossible to imagine a situation in which a product will be in demand forever - sooner or later something new appears that is more physical therapist email list attractive to consumers. And these products displace the previous product from the market.
What is a product life cycle?
Source: shutterstock.com
For example. Previously, texts were typed on typewriters. Today, the same task is performed on a computer. This happened not because the typewriters got damaged or broke, but because working on a PC keyboard is much faster, more convenient and easier.
The product life cycle theory was developed based on the concept of Raymond Vernon and the ideas of Theodore Levitt. Let's see how they are related.
Life cycle theory
In the 1960s, American economist Raymond Vernon developed a concept that explained the principles of global trade development. According to it, each product goes through four stages of its life cycle:
Creation;
height;
maturity;
decline.
There is no point in describing the theory in detail, since it mainly concerned foreign trade. But it is important to note that it was Vernon who first formulated the concept of the product life cycle. In his opinion, over time, demand for a product changes and may even disappear completely.
The concept and definition of stages of the product life cycle
American economist and Harvard Business School professor Theodore Levitt proposed the theory of the product life cycle in 1956. He claimed that any product, like a living organism, goes through several stages of existence.
The concept and definition of stages of the product life cycle
Source: shutterstock.com
At some point, it is in demand by consumers, but then it becomes obsolete, giving way to a new, more advanced one. Levitt found that throughout the sales cycle, the characteristics of the product change. Accordingly, business strategies, sales, marketing policies and tactics, management decisions - all this must also be adjusted to the specifics of each stage.
He identified the following stages of the life cycle:
Implementation . The business develops and introduces a new product to the market. Demand is still low, so sales volumes are small.
Growth stage . Consumers begin to learn about the product, buy it, and the company begins to earn money. The first competitors appear.
Maturity . Demand growth slows down, sales levels stabilize because the market is already saturated with the product. Competition reaches its maximum.
Decline stage . Sales are declining as competitors offer new, more attractive products. If no action is taken, the product will soon leave the market.
To prolong the popularity of a product and maintain demand, various marketing, sales and business management tools are used - everything depends on the goals and objectives that the product solves.
Each product necessarily goes through these stages. It is impossible to imagine a situation in which a product will be in demand forever - sooner or later something new appears that is more physical therapist email list attractive to consumers. And these products displace the previous product from the market.
What is a product life cycle?
Source: shutterstock.com
For example. Previously, texts were typed on typewriters. Today, the same task is performed on a computer. This happened not because the typewriters got damaged or broke, but because working on a PC keyboard is much faster, more convenient and easier.
The product life cycle theory was developed based on the concept of Raymond Vernon and the ideas of Theodore Levitt. Let's see how they are related.
Life cycle theory
In the 1960s, American economist Raymond Vernon developed a concept that explained the principles of global trade development. According to it, each product goes through four stages of its life cycle:
Creation;
height;
maturity;
decline.
There is no point in describing the theory in detail, since it mainly concerned foreign trade. But it is important to note that it was Vernon who first formulated the concept of the product life cycle. In his opinion, over time, demand for a product changes and may even disappear completely.
The concept and definition of stages of the product life cycle
American economist and Harvard Business School professor Theodore Levitt proposed the theory of the product life cycle in 1956. He claimed that any product, like a living organism, goes through several stages of existence.
The concept and definition of stages of the product life cycle
Source: shutterstock.com
At some point, it is in demand by consumers, but then it becomes obsolete, giving way to a new, more advanced one. Levitt found that throughout the sales cycle, the characteristics of the product change. Accordingly, business strategies, sales, marketing policies and tactics, management decisions - all this must also be adjusted to the specifics of each stage.
He identified the following stages of the life cycle:
Implementation . The business develops and introduces a new product to the market. Demand is still low, so sales volumes are small.
Growth stage . Consumers begin to learn about the product, buy it, and the company begins to earn money. The first competitors appear.
Maturity . Demand growth slows down, sales levels stabilize because the market is already saturated with the product. Competition reaches its maximum.
Decline stage . Sales are declining as competitors offer new, more attractive products. If no action is taken, the product will soon leave the market.
To prolong the popularity of a product and maintain demand, various marketing, sales and business management tools are used - everything depends on the goals and objectives that the product solves.