11A : The Product Life Cycle Flashcards
What are the five stages of the product life cycle?
- Development
- Introduction
- growth
- maturity
-Decline
What is the development stage?
• is the first stage of the product life cycle.
when a product is being planned, designed, and tested before it is released to the market.
- high cost, zero revenue
- requires stable cash flow
What is the introduction stage in the product life cycle?
the second phase of the product life cycle
where a new product is launched into the market. During this stage, companies focus on creating awareness and attracting early customers.
What is the growth state in the product life cycle
is the third stage of the product life cycle
where the product gains popularity, and sales increase rapidly.
What is the maturity stage of the product life cycle
is the third stage
product life cycle, where the product gains popularity, and sales increase rapidly.
What is the decline stage in the product life cycle
is the final stage
product life cycle, where sales and profits decrease as the product loses customer interest.
How can you extend product life cycles?
- New advertising promotions
- change the product : change the quality
- special deals, price changes
What are some impacts of extension strategies
•Customer loyalty: it customers are loyal then extension strategy is a success
• Age of product :if product is outdated then success of extension strategy is limited
What are some advantages of the product life cycle
• Helps business to plan : ensures all the companies products sell
• Allows stakeholders to be given data: on sale figures of products
What are some disadvantages of the product life cycle
• Difficult to predict : which stage is the product in?
• change in consumer taste : mean that the product is lifecycle shorter than predicted
