1. Market characteristics in the investment stage: customers are unfamiliar with the products, only a few customers who pursue novelty will buy them, and the sales volume is low; A large number of dissemination and promotion expenses; Products can not be mass-produced, so the cost is high, sales growth is slow, and enterprises may lose money; This product needs further improvement.

2. Growth market characteristics: a large number of new customers start to buy, and the market gradually expands; Products are produced in large quantities, the production cost is relatively reduced, the sales volume is rising rapidly, and the profit is also growing rapidly; Competitors enter the market to participate in the competition, which leads to an increase in the supply of similar products, a decrease in prices, a gradual slowdown in the growth rate of corporate profits, and finally the peak 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 declines; Competition is gradually intensifying, product prices are reduced, promotion costs are increased, and corporate profits are reduced.

4. Market characteristics in recession: the appearance of new products or new substitutes will change consumers' consumption habits and turn to other products, thus rapidly reducing the sales and profits of the original products.

Extended data:

The advantages and disadvantages of product life cycle theory are as follows:

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 determine the criteria for determining the starting point and end 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 volume and time, and does not involve other variables that affect sales volume, such as cost and price.