New+Products+and+the+Product+Life+Cycle

When designing and manufacturing a product it is important to consider its life cycle. Life cycle covers the time from its manufacture to its recycling or disposal. A typical product that has a relatively short life cycle is a newspaper / magazine. Everyone reads newspapers / magazines at some point in their lives and many read a newspaper everyday. As the recycling of products becomes more popular it is important that we consider all the products we use, even the humble newspaper, as a valuable resource even after its ‘useful life time’. The life cycle of a simple newspaper is considered below.

** Introduction **
· Sales are low, losses · Customers aren’t looking for the product, They don’t know about it · Informative promotion is necessary to tell. (the benefits and uses of new product concept) · Most companies experience losses during the introduction stage because they spend so much money for Promotion, Place, and product development.

** Growth **
· Industry sales grow fast, and industry profits rise but then start falling.· The company begins to make big profits as more and more customers buy.· Profits start to decline at the end of this stage due to competition

** Maturity **
· Industry sales level off and competition gets tougher.· Industry profits go down throughout the market maturity stage because promotion cost rise, and because some competitors cut prices to attract business.· Less efficien firms can’t compete with this pressure, and drop out of the market.

** Decline **
· New products replace old.· Only firms with strong brands make profits to the end