Product life cycle
Some products undergo a cycle consisting of five phases:
1.Product development. The company discovers and embodies the new idea of the goods. At this time, sales volume is equal to zero, costs are rising.
2.Removal of goods on the market. Profit is not due to the high costs of marketing activities, slowly increasing the volume of sales
3.Rapid conquest of the market, increase profits
4.Maturity. Growth in sales is slowing, as the bulk of customers are already engaged. The level of profit remains unchanged or decreases due to increased spending on marketing initiatives to protect the goods from the competition
5.Decay. The decline in sales volume and reduced profits.