What are product life cycle stages?

The correct response identifies the product life cycle as the series of phases a product experiences, starting from its initial development all the way to its decline in the market. This concept serves as a crucial framework in category management, allowing businesses to understand how products evolve over time and how to strategically manage them during different phases such as introduction, growth, maturity, and decline.

Each of these stages is characterized by specific market dynamics and consumer behaviors. For instance, during the introduction stage, a product is launched and investments are typically high. In the growth phase, sales begin to increase as the product gains acceptance. The maturity stage is where sales peak and market saturation occurs, while the decline phase sees a decrease in sales and market relevance.

Understanding these stages helps category managers make informed decisions about product positioning, marketing strategies, inventory management, and investment in new product development, ensuring that they can respond appropriately to market changes and consumer demands throughout the entire lifecycle of a product.