3.135 - Product Life Cycle

Question 1

What is the Product Life Cycle?

Answer 1

A theoretical model which describes/predicts the stages a product goes through during its life

Question 2

What are the stages in the Product Life Cycle?

Answer 2

1. Introduction
2. Growth
3. Maturity
4. Decline

Question 3

Describe the Introduction stage of the Product Life Cycle

Answer 3

Research, developing and then launching the product

Question 4

Describe the Growth stage of the Product Life Cycle

Answer 4

When sales are increasing at their fastest rate

Question 5

Describe the Maturity stage of the Product Life Cycle

Answer 5

Sales are near their highest, but the rate of growth is slowing down

Question 6

Describe the Decline stage of the Product Life Cycle

Answer 6

Final stage of the cycle, when sales begin to fall

Question 7

What are Extension Strategies?

Answer 7

Extend the life of a product before it goes into decline

Question 8

Give examples of Extension Strategies

Answer 8

New packaging - Brightening up old packaging or subtle changes
Explore New Markets - Creating a version targeted at different segments - New Geographical areas
Adding Value - Add new features to the current product
Price Reduction - More attractive to customers
Advertising - Try to gain a new audience or to remind the current audience

Question 9

What is the Product Life Cycle used for?

Answer 9

Forecast sale trends
Market targeting and positioning
Analyse and manage a product portfolio
Focus investment in products