The product life cycle is an insightful model that describes the stages a new product goes through. True False

The statement is True.

The product life cycle (PLC) is indeed an insightful model that outlines the various stages a new product goes through from its inception to its decline. Typically, the PLC consists of four main stages:

1. Introduction - This stage involves the launch of the product, where awareness is created, and initial sales are generated, often at a loss due to high development and marketing costs.

2. Growth - In this phase, sales begin to increase as the product gains market acceptance. Profit margins typically improve as economies of scale kick in and marketing strategies become more effective.

3. Maturity - During this stage, sales growth slows as the product reaches widespread acceptance. Competition intensifies, and businesses focus on differentiation and maintaining market share.

4. Decline - Eventually, the product experiences a decrease in sales and profitability, often due to market saturation or evolving consumer preferences. Companies may choose to discontinue the product or reformulate it to invigorate sales.

Overall, the product life cycle provides valuable insights for businesses in terms of strategy, marketing, and resource allocation at different stages of a product's market presence.