What typically occurs during the growth phase of the product life cycle?

During the growth phase of the product life cycle, sales gain momentum with increasing revenue. This occurs because the product has been successfully launched and is beginning to be accepted by a larger segment of the market. Customers are becoming more aware of the product and its benefits, leading to increased demand. As word of mouth spreads and advertising efforts take effect, sales figures typically rise consistently.

During this phase, businesses often invest in marketing to further boost visibility and adoption, which can enhance revenue even more. Additionally, economies of scale may become realized as production ramps up, and companies often find ways to reduce costs per unit as they produce more products, which can subsequently increase profitability.

The dynamics of other phases, such as decreasing sales or profits, do not apply during this particular stage, as the focus is on growth, market saturation, and building a strong customer base. This momentum is a critical indicator of a product's potential success and longevity in the marketplace.