Explain the product/service life cycle model

What will be an ideal response?

A typical life cycle for a product or service is divided into four stages: introduction, growth, maturity, and decline.
During the introduction stage, sales are slow as the product or service is introduced to the market. At the growth
stage, sales expand rapidly as the market adopts the product or service. At the maturity stage, sales growth slows
down because the product or service has been adopted by most potential buyers. During the decline stage, sales
drift downward, unless the product or service's life is extended through new features, new uses, repositioning, or
brand extensions, shown as a life extension in the figure. Product/service tactics will vary based on the life cycle
stage of the market for the product or service. Five product and service characteristics need to be addressed.
Customers to Target: The type of customer we target varies depending on the life cycle stage, because different
individuals show different adoption characteristics. The introduction stage attracts innovators (the very first to try
the product or service, often pioneering types who relish innovation) and early adopters (among the earliest to try
the new product or service). The growth stage transitions from the early adopters to the early majority (people who
value the product or service's benefits, but are unwilling to suffer the defects often inherent in early models). The
maturity stage corresponds to late majority customers (conservative individuals who wait for products to reach full
maturity before purchasing). The decline stage is characterized by a transition from late majority customers to
laggards, who are highly conservative and risk-averse, and are often niche markets who perceive that no substitute
exists.
Features: Different life cycle stages demand differing levels of attention to features. Early adopters are more
concerned with key functionality than complete feature sets, whereas mature markets demand fully featured
products and services.
Quality: Required quality by the market will vary during the life cycle. Early adopters will accept minor faults,
whereas high quality is expected in mature markets. High quality is a must in a world where dissatisfied customers
can express their anger online with a click of a mouse.
Packaging: In the larger sense, packaging consists of more than just a cardboard box. It is the way the product or
service is presented to the customer. For products, this can mean the number of sizes, colors, and flavors available.
For services, this can mean the range of service options available, such as different types of hotel rooms to
accommodate different types of travelers. The focus on the packaging of products and services will change during
the life cycle. In the introduction stage, companies will often provide a limited number of variants (partially
because many companies do not know which specific variants customers prefer when the offering is first
launched), whereas later stages warrant more choices.
Brand: Brands help make products and services distinct and relevant to the buyer. In essence, the brand is a
trustworthy, relevant, distinctive promise to customers. Our branding efforts will vary during the life cycle.