Product life cycle
The product life cycle describes a product’s market development through stages commonly labelled introduction, growth, maturity and decline. Sales patterns, competition, prices, marketing and support needs can differ by stage. It is a planning framework, not a rule that every product follows a predictable timetable. Distinguish it from a cost life cycle, which can begin before sales with research and design and continue afterwards through support or disposal.
Worked example
A new device has low initial sales and launch spending, then growing demand, price competition at maturity and falling sales as alternatives emerge.
Common mistake
Do not extrapolate a historical growth trend indefinitely or assume stage labels establish a reliable forecast without market evidence.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Supporting | September 2026–June 2027 |
| ACCA | MA | Direct | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |
