LO3: Product Lifecycle

Question 1

What is a product lifecycle graph? What are the stages?

Answer 1

• Development - no sales the product is being made and tested
• Introduction - product just been launced, sales steadily increase
• Growth - product becoming more popular, sales increase rapidly
• Maturity - no new customers, competitors releasing similar products (saturated market), sales have peaked and start to reduce
• Decline - no new customers and repeat customers declining, business must decide whether to withdraw product, slaes rapidly decreasing

Question 2

What is an extension stategy? Why are they introduced?

Answer 2

Introduced in the maturity stage, extends the product lifecycle to prevent it from entering the decline stage