Lesson 7: The Product Life Cycle Flashcards
1
Q
introduction phase
A
- production is costly
- price of product is high
- sales are low
- marketing increases
- early adopters: people who wnat to try new products
2
Q
growth phase
A
- sales increase
- product is spread by advertisemnt/mouth
- decarese in price with more competitors
- market share: how much of market you contorl compared to competition
3
Q
Maturity Phase
A
- sales slow down
- profit is stable
- price is low
- competition is high
- market share is stable
- costs have been covered
4
Q
Decline Phase
A
- sales and profit decrease
- company tries to rebrand goods (price or feautures)
5
Q
desion point
A
- decide to get rid of the company or continue
6
Q
Fad
A
a product that is popular for hsort amount of time
7
Q
trend
A
- more lasting effect on market
8
Q
Niche Market
A
firms that control and dominate a very small, specific section of the market (pet stores)
9
Q
Seasonal Market
A
g&s are popular during certain seasons
