"Product Life Cycle"
Raymond Vernon (1966) developed the Product Life Cycle theory from an economic perspective in order to understand patterns observed in international trade.
The product life cycle can be considered a marketing tool that helps visualize a product's evolution from its market entry to its eventual withdrawal.
The evaluation process begins when the product launches and requires extensive market research to determine what works in the marketplace so the product can survive. During this initial stage, many products fail to continue due to low sales volumes, high advertising costs, and other challenges.
If the product successfully finds a place in the market because proper market research identified a real need that the product can satisfy, it can move on to the growth stage. During this phase, the product reaches a larger number of people, expands its pool of potential customers, increases sales, and begins to establish a position in the market.
The maturity stage is where the highest sales volume can be observed, and the brand becomes established as a recognized player in the market. However, competition is usually intense during this phase, so companies often reduce prices in order to remain competitive against other products available in the market.
Finally, during the decline stage, product sales begin to decrease significantly, making the product less profitable. This may occur because market needs have changed, and no in-depth research was conducted to update the product and adapt it to new demands.
For this reason, it is important to keep products updated according to changing market needs. In some cases, a product can even be relaunched after implementing improvements and updates. It may also be possible to extend the maturity stage by encouraging new consumption habits, among other strategies aimed at delaying decline.