• All products and services have a limited life, although the length of that life varies.
• The product life cycle can be represented as a characteristic sales-volume-over-time curve.
• Stages in the product life cycle:
• Development
• Growth
• Maturity
• Saturation
• Decline

4.1 DEVELOPMENT

• Marketing research is undertaken.
• The product/service is designed and developed.
• Promotion methods are decided upon and established.
• Costs are high and income is low.
• Profits are not made at this stage according to the training material.

4.2 GROWTH

• If the marketing mix works well, the product/service gains general acceptance.
• Sales increase.
• Profits develop as development costs are recovered.
• Higher sales may create economies of scale.

4.3 MATURITY

• Sales continue to increase but more slowly.
• Initial demand has largely been satisfied.
• Competitors may enter the market because they see profit potential.
• Profits are likely to begin declining.

4.4 SATURATION

• The potential market is fully supplied.
• Sales pass their peak.
• Profitability declines further.

4.5 DECLINE

• The market is shrinking as customers develop other needs.
• Sales continue to decline.
• Profitability also declines.
• Operators should monitor products/services throughout their life cycles and develop new products before too much of the business depends on something already in decline.