Definition of Product Life Cycle $($PLC$)$

Before discussing the product life cycle stages, it is wise to explain what the product life cycle actually is$.$ The product life cycle $($PLC$)$ is the course of a product$$s sales and profits over its lifetime.

Product Life Cycle Stages

There are five distinct product life cycle stages:

Product Development. When the company finds and develops a new product idea, product development starts. During product development, sales are zero, and the company$$s investment costs increase.

Introduction. Sales slowly grow as the product is introduced in the market. Profits are still non$-$existent, because the heavy expenses of the product introduction overweigh sales.

Growth. The growth stage is a period of rapid market acceptance and increasing profits.

Maturity. In the maturity stage, sales growth slows down because the product has achieved acceptance by most potential buyers. Profits level off or decline because marketing outlays need to be increased to defend the product against competition.

Decline. Finally, sales fall off and profits drop.