Product Life Cycle Flashcards
what are the 4 stages of a products life and what happens at each?
-introduction early stages and new version -Growth popularity rises -Maturity sales peak and find place on market -Decline + Replacement few sales and less popular
what factors are discussed before product launch
- time
- cost
- research
- development
- planned obsolescence
what stage makes the most profit?
Maturity phase
what is the goal of a product?
to stay in the maturity phase as long as possible
what contributes to a products obsolescence time?
- packaging requires short life span
- pay for quality so last long time
- decompose or fail during use
- new products need to be successful
whats key to a good product launch ?
timing to avoid factors diminishing impact
how does timing affect sales?
competition can reduce sales
seasonal items need to be released at the right time
what happens during the evolution/ decline stage?[5]
- initial success influenced by marketing
- price ajustments
- returns due to faults
- customer service
- design changes
what happens during the growth phase?
if successful then product sales should increase
how does the growth phase impact a company?
- company benefits from sales
- continued advertising
- continued recommendations and reviews
- trade awards and events can boost sales
what happens during the mature phase?
- product may evolve or be suspended
- market competition increase
- advertising focuses on brand identity and promo offers
what happens in the decline phase?
- sales decline and the market shrinks
- less investment on development
- competition outgrows original product
- not successful to consumer
- unfashionable
- environmental issues can cause decline
how does replacement occur?
before product taken off the market its successor has already been launched and is in the growth stage
What happens when a product is withdrawn?
still a repair and replacement market so spare parts can be sold
