Product Life Cycle Flashcards
What is a product life cycle?
The stages through which individual products develop over time
What is a product?
Anything capable of satisfying customer needs
What are the four stages of a classic product life cycle?
Introduction, growth, maturity, decline
What is the introduction stage of a product life cycle?
New and rare products, marketing costs are high, no profits, carefully monitored in order to grow the product.
What is the growth stage of a product life cycle?
Rapid growth in sales and profits, increased output and better prices, cheaper for marketing, promotional resources invested.
What is the maturity stage of a product life cycle?
Competition is most intense, marketing and finance is important, can be copied by competitors. Most profit is earned by the market as a whole, production efficiency is focused on.
What is the decline stage of a product life cycle?
Market is shrinking, profit is shrinking, product must be managed carefully. Stocks are not large and sold to cheaper markets. Companies may end the product.
What is planned obsolescence?
Products that are designed to only last a short time.
Why is planned obsolescence a thing?
To keep up to date with current trends and making sure products deliberately break in order to make consumers buy more.
What are the positives of a limited life cycle of products?
Business opportunities.
Variety of style
Cheaper products
More exciting
What are the negatives of a limited life cycle product?
Environmentally destructive
Not good quality
Gives fashion a bad image
Expensive
