1. Market characteristics in the investment stage: customers still don't know about the products, and only a few customers who pursue novelty may buy them, with low sales; Publicity requires a lot of promotion expenses; Products can't be produced in large quantities, so the cost is high, the sales volume increases slowly, and enterprises may lose money; This product needs further improvement.

2. Market characteristics in the growth period: a large number of new customers began to buy, and the market gradually expanded; Products are produced in large quantities, production costs are relatively reduced, enterprise sales are rising rapidly, and profits are also growing rapidly; Competitors enter the market to participate in the competition, which increases the supply of similar products, reduces the price, and gradually slows down the growth rate of corporate profits, and finally reaches the highest point of life cycle profits.

3. Market characteristics in the mature stage: the market demand tends to be saturated, there are few potential customers, and the sales growth is slow until it turns around; Competition is gradually intensifying, product prices are reduced, promotion expenses are increased, and corporate profits are reduced.

4. Market characteristics in the recession stage: the appearance of new products or new substitutes will change customers' consumption habits and turn to other products, so that the sales and profits of the original products will drop rapidly.

Extended data:

Advantages and disadvantages of product life cycle theory are:

Advantages: Product Life Cycle (PLC) provides a set of applicable marketing planning viewpoints. Divide products into different strategic periods and adopt different marketing mix strategies according to the different characteristics of each stage. In addition, the product life cycle only considers two variables, sales volume and time, which is easy to understand.

2. Disadvantages: it is difficult to confirm the criteria for dividing the starting point and ending point of each stage of the product life cycle; Not all product life cycle curves are standard S-shaped, and there are many special product life cycle curves. It is impossible to determine whether the product life cycle curve is applicable to a single product project level or a product collection level; This curve only considers the relationship between sales and time, and does not involve other variables that affect sales, such as cost and price.

Baidu Encyclopedia-Product Life Cycle