Anything that has the capacity to provide the satisfaction, use and return desired by the customer is called product. If the bank product is no longer capable of satisfying customer needs and wants, the product will fade out.
Product Life Cycle
There are various stages in the life of the product
When a product is introduced the sales volume will be low and revenue from the products will not be sufficient to cover the cost of producing, marketing and servicing it. In the introduction stage it happens because it takes time for the product to occupy the minds of the customers.
In this stage, the sales volume of the product picks up and the product is likely to break even and start generating profits for the organisation. During this period the consumer awareness of the product will be more and that will result in growth.
In this stage there is more growth and sales volume peaks. There is a wide customer base which will result in maximisation of sales with inflow of business and profits.
In this stage, staleness will be visible because of competition and better products available from the competitors, which will result in saturation of sales. The business and profits stagnate, customer develop a tendency of indifference to the product.
In this stage, the product becomes less attractive for the consumers due to various reasons and results in drop in sales volume and profits. This stage if not attended properly will lead to product death. This can be avoided by fine tuning and value adding to revitalise the product for continued acceptance.
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