How many phases are there in the product life cycle?

The concept of the product life cycle typically encompasses four distinct phases: introduction, growth, maturity, and decline.

During the introduction phase, a product is launched into the market, and marketing efforts focus on building awareness and encouraging early adoption. In the growth phase, sales begin to increase rapidly as the product gains market acceptance, leading to higher revenue. The maturity phase is characterized by peak sales and market saturation, where growth stabilizes, and competition becomes fierce. Finally, the decline phase occurs when sales and profits start to diminish, often due to market saturation, changed consumer preferences, or technological advancements leading to obsolescence.

Recognizing these four phases is essential for effectively managing a product's market strategy, supply chain, and marketing efforts, as each stage requires different management tactics to maximize product success and profitability. Understanding when to invest in or phase out a product depends significantly on its stage in the product life cycle.