Product Life Cycle
By: Moli Eddins
Introduction is when the product first appears. In this stage most of the company efforts are focused on promotion and making customers aware of the product. This stage of the PLC is least profitable.
Product growth is when the product profits are beginning to increase as is the product awareness. In this stage competition is likely to occur, and companies will need to spend most of the money on advertising.
The maturity stage is when sales begin to peak and sales then increase at a slower rate. During this stage advertising is focused on consumer satisfaction. Most of the target market already owns the product, being as it is a "mature product".
In this stage both of the sales and profits decline. Discounting the product is likely in this phase and management is forced to make tough decisions on whether to discontinue or keep the product.