Editing Marketing (section)

==Product life cycle==

{{Further|Product life-cycle management (marketing)}}
[[File:Product life cycle.png|thumb|[[Product lifecycle]], with the assumption of four major phases: introduction, growth, maturity, and decline. Curve of sales as a function of the time of the product on the market. After a plateau in sales at product maturity, a steep decline can follow.]]
The [[product lifecycle|product life cycle]] (PLC) is a tool used by marketing managers to gauge the progress of a product, especially relating to sales or revenue accrued over time. The PLC is based on a few key assumptions, including:
* A given product would possess introduction, growth, maturity, and decline stage
* No product lasts perpetually on the market
* A firm must employ differing [[Marketing strategies for product software|strategies]], according to where a product is on the PLC

In the '''introduction''' stage, a product is launched onto the market. To stimulate the growth of sales/revenue, use of advertising may be high, in order to heighten awareness of the product in question.

During the '''growth''' stage, the product's sales/revenue is increasing, which may stimulate more marketing communications to sustain sales. More entrants enter into the market, to reap the apparent high profits that the industry is producing.

When the product hits '''maturity''', its starts to level off, and an increasing number of entrants to a market produce price falls for the product. Firms may use sales promotions to raise sales.

During '''decline''', demand for a good begins to taper off, and the firm may opt to discontinue the manufacture of the product. This is so, if revenue for the product comes from efficiency savings in production, over actual sales of a good/service. However, if a product services a niche market, or is complementary to another product, it may continue the manufacture of the product, despite a low level of sales/revenue being accrued.<ref name=":0" />