Do products have a life cycle?

The answer is YES!!!

In an attractive analysis of the market, the analysis of the potential market represents a fundamental quantitative stage.

This analysis must be complemented by a study of the life cycle of the product or the evolution of the demand potential of a product or service over time.

While an analysis of the life cycle of a product can be of great value if it is carried out correctly, the CVP has its main utility at the level of the analysis of a product market.

This level of demand analysis is the one that best adapts to a life cycle analysis since it describes purchasing behavior within a product category and better describes the reference framework (JACQUES, 2003).

The most common path of the life cycle curve of the products is bell-shaped. This curve is divided into four phases known as introduction, growth, turbulence, maturity, and decline.

Introduction:

Period of slow growth of sales after the launch of the product to the market. The profits are nil as a result of the substantial expenses involved in the launch of the product.

Increase:

Period of acceptance of the product in the market in which profits increase considerably.

Turbulence:

At the end of the growth stage, there is an intense competitive fight, in which “our” product can disappear for the benefit of the competitors, although it enjoys the advantage of being the first to appear. The trend of sales goes through a turning point, and they become less than proportional over time (the market shows signs of saturation). Rising profits

Maturity:

Period of decline in sales growth as a result of which most potential buyers have already accepted the product. Profits stabilize or decrease because of increased competition.

Decline:

Sales show a downward trend and profits decrease dramatically (KOTLER et al., 2006)