Priduct Life Cycle Flashcards
What is the product life cycle?
Describes of different stages of the growth of he product.
What is the research and development stage?
Market tease h to find a gap in the market,
cash flow is negative because money is spent on creating the product.
What is the introduction stage?
Launch the product into the market.
Cash flow is still negative because you are still spending money on ad advertisement.
What is the growth stage of the PLC?
Sales and profit rise as products are sold in more than one outlet.
Cash flow is positive
Continue increasing awareness
What happens in the maturity stage?
Sales are at it’s peak.
Cash flow is positive.
Continue increase awareness.
What happens in the decline stage?
Big fall in sales.
Withdrawal from the market.
Cash flow is negative.
Who are early adopters?
Customers buy products as soon as they are released no matter the price. Loyal to a brand.
What is an extension strategy?
Introduce a slight variation of the product. So they can have stay ahead of the competition and relaunch the brand name.
They can meet trends to also increase sales.
