product life cycle

Question 1

what is the PLC (product life cycle)

Answer 1

the intro, growth, maturity, decline and replacement cycle of products, measured in sales and time

Question 2

features of the intro stage

Answer 2

• when a product first enters the market
• low sales and small profits
• large investment
• large expenditure on marketing

Question 3

features of the growth phase

Answer 3

• popularity is increasing leading to more sales
• market shares grow
• profitability improves

Question 4

features of the maturity stage

Answer 4

• sales of products are at the peak
• reaching the point where all potential customers own one
• planning ahead for replacement is required
• maximum profitability

Question 5

features of the decline phase

Answer 5

• product is less popular so no longer viable to sell
• profits fall with lower sales
• further production is no longer viable

Question 6

features of the extension phase

Answer 6

• updated or new models replace the old withdrawn product
• the iterative design process results in improved replacement products
• updated features are introduced to extend product life and reinvigorate sales

Question 7

what is demand pull

Answer 7

• product designers responsible of the demand pull of customers for desirable features
• eg improved phones

Question 8

what is technology push

Answer 8

• r+d costs leads to the technology push of new companies ideas
• consumers need to be ‘sold’ the merits of the new idea or features
• google failed to convince consumers that the ‘google glass’ was worth the expense and so was a failed technology push