What does the product lifecycle describe?

The product lifecycle describes the stages a product goes through in the market, including introduction, growth, maturity, and decline. This concept allows businesses to understand how a product evolves over time, from its initial launch to eventual phase-out. Each stage presents different challenges and opportunities for marketing, sales strategies, and inventory management.

Understanding the product lifecycle is crucial for retailers and marketers as it helps them implement timely strategies to maximize sales and profitability during each phase. For instance, during the introduction phase, the focus might be on raising awareness and trial, while the maturity phase may require strategies to defend market share as competition increases. This concept enables businesses to anticipate changes in consumer demand and adjust their offerings accordingly.