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Explain the product cycle theory.

Product cycle theory with example=
Definition=
The product life cycle is the life of the product from starting to the end of the product. It is the period of time over which an item is produced, brought to market and eventually removed from the market. First, the idea for a product undergoes research and development. If the idea is determined to be feasible and potentially profitable, the product will be produced, marketed and rolled out. its production will grow until the product becomes widely available. Eventually, demand for the product will decline and it will become obsolete.
There are four stages of the product which is following:
Introduction= 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= The growth stage is typically characterized by a 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 the promotional activity to maximize the potential of this growth stage.
Maturity= During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.
Decline Stage= finally, the market for a product will start to shrink known as the decline stage. This shrinkage could be due to the market becoming saturated (no more demands), or because the consumers are switching to a different type of product. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets.
Example of product life cycle is following:

  1. Introduction – window Ac
  2. Growth  –  Split Ac
  3. Maturity – Air condition for more than on room.
  4. Decline  – Ac with high electricity consumption.
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