The life cycle concept as a long term forecasting model

This paper presents a model for long term sales forecasting based upon the product life cycle concept. The life cycle concept is first reviewed with an emphasis on sales behavior in each of the life cycle stages. A simple model consistent with the life cycle concept is then presented. Based upon this model a sales forecasting methodology is developed and tested. The results are generally promising particularly considering the nature of the test data. The article concludes by suggesting future applications of the product life cycle concept. Ralston Purina Company