Cambridge O Level Business Studies · Syllabus 7115 · Marketing
Product Life Cycle
What is Product Life Cycle?
A model describing the stages a product passes through from its first development to its withdrawal: development, introduction, growth, maturity and decline. It plots sales against time, not profit, and the length of each stage varies widely between products, so it describes a typical pattern rather than a fixed timetable.
This definition is part of the Marketing chapter in Cambridge O Level Business Studies.
Common mistakes with Product Life Cycle
- 7. "The product life cycle shows profit." Fix The vertical axis is sales and the horizontal axis is time. Profit behaves differently — it is usually negative during development and introduction even while sales are rising. Label the axes Sales and Time, every time.
- "The vertical axis of the product life cycle is profit." Correction It is sales against time. Profit is usually negative during development and introduction and peaks in maturity, which is a different curve entirely. What it costs The axis-labelling mark on any question that asks for the diagram, and it produces the wrong advice about declining products.
Questions students ask about Product Life Cycle
What does the product life cycle actually measure?
The product life cycle plots sales against time, not profit, across five stages: development, introduction, growth, maturity and decline. Profit behaves differently — it is usually negative during development and introduction even while sales are rising — so the two curves must not be confused. The stage lengths also vary widely between products, so no date can be read off the diagram.