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Cycle

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A cycle is a recurring pattern, usually wavelike. In business there are a few common patterns like this, such as the business cycle and the credit cycle. The business cycle is the boom and bust pattern of the market economy. The credit cycle is the expansion then subsequent contraction of credit. The credit cycle is closely related to the business cycle. In the credit cycle, as lending criteria tighten, credit tends to contract, and this often precipitates a recession. Another type of cycle important in business is the life cycle. For example, in marketing, the product life cycle is important. The stages of this life cycle are introduction, growth, maturity, decline, and withdrawal. Each stage of the cycle has implications for the marketing mix.



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