1.3.5 Product life cycle Flashcards
1
Q
Product life cycle
A
Describes the stages a product goes through over its life cycle.
2
Q
Development characteristics
A
-High cost per unit
-Promotion will start to be used
-No sales
3
Q
Introduction
A
-Low sales
-Still high cost per unit
-limited distribution to see customer’s reaction
4
Q
Growth
A
-Sales increase
-Falling cost per unit
-Building customer loyalty via promotion
-Enters more markets and shops
5
Q
Maturity
A
-Sales reaching peak/slowing
-Still falling cost per unit
-Remove poor sellers or extend brand
6
Q
Decline
A
-Sales fall
-Low cost per unit-development cost covered
-discounts to maintain sales
7
Q
Extension strategies
A
Product
-increase product range
-Changing shapes and sizes
Promotion
-new segments of the market
-find new uses for the product
