Paper Two: Product life cycle Flashcards
1
Q
PRODUCT LIFECYCLE
1. introduction
A
- product first released
- few sales
- little profit
- range of marketing
2
Q
PRODUCT LIFECYCLE
2. growth
A
- product becomes more popular
- sales increase
- market share increases
- cost of development met
3
Q
PRODUCT LIFECYCLE
3. maturity
A
- most people who want it, own it
- company must consider how to keep market share (eg re-release, product extension)
4
Q
PRODUCT LIFECYCLE
4. decline
A
- sales drop, profit decreases
- eventual cost of manufacture means product no longer profitable
- product withdrawn from market
5
Q
PRODUCT LIFECYCLE
5. product extension
A
- company releases new product under established brand name (eg iPhone, coke)
- profit increases
