1.50 Product Life Cycle Flashcards
What is stage 0 of the product life cycle curve
Inception
What is stage 1 of the product life cycle curve
Introduction
What is stage 2 of the product life cycle curve
Growth
What is stage 3 of the product life cycle curve
Maturity
What is stage 4 of the product life cycle curve
Decline
definition of inception
the product is just an idea and has not been introduced to market
Definition of introduction
A product is introduced into the market for the first time
definition of growth
the product is beginning to be recognised and becoming more popular
definition of maturity
the product has peaked in terms of costs, profits and sales
definition of decline
the product is beginning to die out more innovative products begin to replace it
3 characteristics of introduction
marketing costs are high as product awareness needs to be created.
sales are slow.
there are few to no competitors in the market.
3 characteristics of growth
costs are reduced due to economies of scale.
sales increase.
product makes more profit.
3 characteristics of maturity
product volumes increase causing costs to lower.
product sales peak and market saturation is reached.
more competitors enter the market.
3 characteristics of decline
sales decrease.
profit margins decrease.
remaining stock sold off.
characteristics of fashion products
lasts for a shorter time than a basic product.
when it reaches maturity the decline is quite rapid.
short life cycle.
