Product Life Cycle

Theory

Product Life Cycle Theory

An economic theory that was developed by an American Economist,

Raymond Vernon in 1996.

The product life cycle is the period of time over which an item is
developed, brought to market and eventually removed from the market.

Product Life Cycle Theory

According toRaymond Vernon, each product has a certain life cycle that
begins with its development and ends with its decline. There are four
stages in a products life cycle: introduction,growth, maturity
and decline.

Four Stages in Products Life Cycle

Four Stages in Products Life Cycle

Stage 1: Introduction

This is the stage in which a new product is first made available in

the market.

Stage 2: Growth
This initial stage of the product life cycle is characterized by high
prices, high profits and wide promotion of the product.

Four Stages in Products Life Cycle

Stage 3: Maturity

The product is establish and the aim for the manufacturer is now
to maintain the market share they have built up.

Stage 4: Decline

This stage of the Product life cycle can occur as a natural result
but can also be stimulated by the introduction of new and innovative
products

Reference

Vliet, V. ( September 24, 2014). Product life cycle by Raymond Vernon.

Retrieved from
http://www.toolshero.com/marketing/product-life-cycle-vernon/

Investopedia. (n.d). Product life cycle definition. Retrieved from

Investopedia
http://www.investopedia.com/terms/p/product-life-cycle.asp#ixzz4DZzfY
gaI

Markgraf, B. (n.d). The Three stages of the international product life

cycle theory. Retrieved from http://
smallbusiness.chron.com/three-stages-international-product-life-cycletheory-19364.html