"Product Life Cycle"
Raymond Vernon (1966) developed the Product Life Cycle theory from an economic perspective to better understand patterns in international trade.
The Product Life Cycle can be seen as a marketing framework that illustrates a product's evolution, from its introduction to the market until it is eventually withdrawn.
The process begins the moment a product is launched and requires extensive research into what works in the market so that it can survive. In this initial stage, many products fail due to low sales volumes, high advertising costs, and other related challenges.
If the product manages to establish itself in the market—thanks to proper research that identifies a real unmet need—it can move on to the growth stage. At this point, the product reaches a larger audience, expands its customer base, increases sales, and begins to strengthen its position in the market.
In the maturity stage, sales typically reach their highest level, and the brand becomes a well-established player in its industry. However, competition is usually intense at this point, which is why prices are often reduced to stay competitive.
Finally, in the decline stage, sales begin to fall significantly, making the product less profitable. This may happen because market needs have changed, and no in-depth research has been carried out to update and adapt the product accordingly.
For this reason, it is important to keep products updated in line with changing market needs. In some cases, a product can even be relaunched after 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.