We define a product as "anything that is able of satisfying customer needs. This definition includes both physical [?] (e.g. cars, washing machines, DVD players) as well as [?] (e.g. insurance, banking, private health care).

Businesses should manage their products carefully over time to ensure that they have products that continue to meet [?] wants. The process of managing groups of brands and product lines is called portfolio planning.

The stages through which individual products develop over time is called commonly known as the "Product Life Cycle".

The classic product life cycle has four stages: introduction; growth; maturity and decline:


Introduction Stage

At the Introduction (or development) Stage market [?] and growth is slight. it is possible that substantial research and development costs have been incurred in getting the product to this stage. In addition, marketing costs may be [?] in order to test the market, undergo launch promotion and set up distribution channels. It is highly unlikely that companies will make profits on products at the Introduction Stage. Products at this stage have to be carefully monitored to ensure that they start to grow. Otherwise, the best option may be to retire or end the [?].


[?] Stage

The Growth Stage is characterized by rapid [?] in [?] and [?]. Profits grow due to an increase in output (economies of scale) and possibly better prices. At this stage, it is cheaper for businesses to invest in increasing their market share as well as enjoying the overall growth of the market. Accordingly, significant promotional resources are traditionally invested in products that are firmly in the Growth Stage.


[?] Stage

The Maturity Stage is, perhaps, the most common stage for all markets. it is in this stage that competition is most intense as companies fight to [?] their market share. Here, both
marketing and finance become key activities. Marketing spend has to be monitored carefully, since any significant moves are likely to be copied by competitors. The Maturity Stage is the time when most profit is earned by the market as a whole. Any expenditure on research and development is likely to be restricted to product modification and improvement and perhaps to improve production efficiency and [?].


[?] Stage

In the Decline Stage, the market is [?], reducing the overall amount of [?] that can be shared amongst the remaining [?]. At this stage, great care has to be taken to manage the product carefully. It may be possible to take out some production cost, to transfer production to a cheaper facility, sell the product into other, cheaper markets. Care should be taken to control the amount of stocks of the product. Ultimately, depending on whether the product remains profitable, a company may decide to end the product.