1.50 Product Lifecycle

Question 1

Describe the characteristics with the inception stage

Answer 1

-development stage
-time and money spend
-no profit- breakeven or loss
-no sales, high spending

Question 2

Describe the characteristics with the Introduction stage

Answer 2

-High marketing mosts- consumer product awareness needs to be created
-sales are slow- nobody knows its reliable
-few/ no competitors
-customer has to be encouraged to buy the product
-skimming and menetration pricing strategies may be used

Question 3

Describe the characteristics with the growth stage

Answer 3

-costs reduced due to economies of scale- larger quanitity producted
-product sales significantly increase
-marketing costs lower than previous two stages- product awareness has been created
-product begins to make more profit
-competition starts to increase- new companies entering the market
-competition may lead to potential price decrease- competitive pricing used- match/ go lower

Question 4

Describe the characteristics associated with maturity

Answer 4

-Production volume increases
-product sales peak- market saturation reached
-more competitiors
-prices drop due to competitor boost
-persuasive advertising- differentiation of brand emphasised
-marketing costs than previous 2 stages- slaes promotion techniques used- BOGOF

Question 5

Describe the characteristics associated with decline

Answer 5

-costs become counter optimal
-no marketing activity- product in decline
-sales start to decrease
-profit margin dimisnishes
-any profit- from distribution and production efficiencies rather than increased sales
-remaining stock sold off

Question 6

Explain the characteristics for a FAD product

Answer 6

-offer shortest lifecycle
-short lifecycle- rapid growth, followed by a sharp decline
-normally adopted by groups of young people

eg loom bands, furbies, foam parties, vapes

Question 7

Describe the characteristics of a Fashion product

Answer 7

-shorter time period than a basic product
-short lifecycle
-length of cycle follows the latest fashion styles and popular trends
-when reached maturity, the decline is rapid

eg clothes, ugg boots
-may repeat themselves

Question 8

Describe the characteristics with basic products

Answer 8

-longest lifecycle out of all three
-stable and long lifecycle- substantial need in market
-won’t decline unless there is a major product innovation to replace the need for the product
-highest sales out of all three
-eg TV, cooker, washing machine