Product life cycle is a way to look at the introduction of a new product into the market. According to http://www.valuebasedmanagement.net/methods_product_life_cycle.html, these are the stages: introduction, growth, maturity and decline.
In introduction, the new product is placed in the market. In this stage, most people are not aware of the product. An awareness campaign needs to be developed to educate the public, perhaps in specific test markets.
In this stage, the company might want to consider offering an introduction price to attract consumers. As well, not all retailers will carry the product until the demand increases.
The people who are likely to purchase the product in this stage are deemed to be innovators or early adaptors. It is key to satisfy these trendsetters as they could be responsible for driving future sales. Sales and profits are both low - in fact, profits may be non-existent since there is a high ...
The solution discusses product life cycle concepts for relative sales and profits during each stage.