Product life cycle Flashcards
What are the five stages of product life cycle [PLC]?
Introduction, evolution, maturity, decline/ removal, extension/ replacement
What is the Introduction phase in the product life cycle?
in this phase the product is launched with publicity and marketing to promote it. sales increase slowly
What is the Evolution/Growth phase of a product life cycle?
in this phase advertising helps increase sales and users switch from previous iterations of the product onto the new one.
sales increase rapidly
What is the Maturity phase of a product life cycle?
peak sales are reach and the product starts making profit
the longer it lasts in this phase the more successful it will be
What is the Decline / Removal phase of a product life cycle?
Most potential consumers have purchased the product and sales dip as demand decreases.
What is the Extension/ Replacement phase of a product life cycle?
the product is developed further and updated to increase demand for it and thus sales can be restored to the maturity phase. should this be inadequate the product is removed from the market and a different product is released starting the cycle again
What is demand pull?
this is an extension strategy where the consumer will desire new features and improvements on existing products so the manufacturer can satisfy these in order to renew interest and extend the products life cycle
What is Technology push?
this extension strategy uses research and development to create new ideas and improvements which could excite consumers and attract them to a product. consumers need to be sold on new technology through advertising and marketing
What is planned obsolescence?
some products are designed to need regular replacement both to ensure functionality is maintained and to keep sales high without expensive R&D costs
