Product Life Cycle

His product life cycle has 4 very clearly defined stages, each with its characteristics that mean different things for businesses that are trying to manage the life cycle of their particular products. Introduction Stage - This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it's a competitive sector. Growth Stage - The growth stage is typically characterised by strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in promotional activity to maximize the potential of this growth stage.