The product life cycle shows the sales of a product over time and consists of four main stages a product can be at during its life:
Extension strategies are used during the saturation and decline stage to try and extend the product's life cycle. These may include price reductions and other special offers. Sometimes companies may decide to target a new segment of the market as an extension strategy or develop an entirely new product.
The product life cycle is shown as a line graph and is useful to decide what marketing needs to be carried out for the product at different stages. It must be remembered that different products will spend different amounts of time at each stage of the life cycle.