1.3.5 Marketing Strategy - Product life cycle Flashcards
Product life cycle
Series of stages that a product goes through over it’s lifetime and the sales that can be expected at each stage
How many phases in the product life cycle
5
The 5 phases in product life cycle
1) Research and development
2) Introduction
3) Growth
4) Maturity
5) Decline
Occurrence during RESEARCH AND DEVELOPMENT stage
- Product is being researched and designed (meaning ideas are tested)
- Costs are high during this stage as businesses are essentially spending to develop but receiving no revenue whilst doing so
Occurrence during INTRODUCTION stage
- Business introduced new product/service to the market
- Heavy marketing + advertising important in this stage
Occurrence during GROWTH stage
-product becomes established and more and more customer become aware and buy the product
-Can gain EOS as product sales increase and becomes more profitable
Occurrence during MATURITY stage
-Product sales has slowed but it still established and has a market share
-there is intense competition due as rivals products too have developed
Occurrence during DECLINE stage
-demand for product has fell off due to consumer tastes/competitors/new tech
Extension strategies
Ways to prolong life of a product before sales start to decline
Extension strategies help to generate…
More cash + cover costs
2 ways in which a businesses can extend their products
1) Product development
2) Promotion
Examples of product development
4
-Updating current models e.g cars bringing out updated versions of successful models
-Adding value e.g Apple making laptops more slicker/Trendy
- Extending product range e.g Walkers bringing out new flavour crisps
- Updating and modifying packaging - keeps it refreshing
Examples of promotion
-Re packaging
- Re branding
- New markets e.g overseas , different market segment
- More frequent use e.g cereals packaging says have cereals as snacks
