Product Life Cycle Flashcards
What are the 4 stages of product life
Introduction, Growth, Maturity, Decline (and replacement)
What is the introduction stage?
The early stages of the product’s life (and new versions of)
What is the growth stage?
This is when the popularity of the products starts to rise and the sales build.
What is the maturity stage?
When the sales peak and the product finds its place in the market.
What is the decline stage?
This is when the product achieves fewer sales and the popularity recedes.
What happens before product launch?
Designers and manufacturers have to spend a lot of time and money on research and development (R&D)
What happens during research and development?
This includes covering machinery, tooling, materials and staffing costs before any money is recouped.
It can take a long time for products to break even (if at all).
Factoring in built in or planned obsolescence is also part of pre-launch planning
What is the maturity phase and why should it be maintained?
- This is where the most profit is made
- The maturity phase as long as possible is the goal, therefore this needs to be planned before launch
Why is the built in obsolescence important?
Designers must consider the expected product life length.
Why is built in obsolescence used?
- Most packaging items require only a short life span
- If you pay for a quality product you would expect it to last
What causes obsolescence?
Changing trends
What are some products required to do?
Some products are required to decompose or fail during use
What should be enabled for products to be successful.
Older products will need to be replaced
What is the introduction of a product?
A product’s launch needs to be timely to avoid external factors diminishing the impact.
What could reduce early sales?
Competition from similar bonds
What is important for seasonal products?
Selecting the correct time of year can be very important for some seasonal products.
What is evolution in terms of a product?
Once a product is introduced to the market there is a settling-in period where early issues may appear.
What can initial success be influenced by?
Marketing, targeting user groups and consumer satisfaction.
What should we do to the price to drive sales?
The price point might need adjusting early on to drive sales.
What can poor performance and returns happen because of?
This can happen due to faulty products.
Why is customer service important important?
To keep faith in faulty products
How can you improve a product
Make design changes
How would an initial user group expand?
It will expand if the product is successful
How can you ‘evolve’ a product’s life?
Have updated versions
What is growth?
If the growth of a product has been successfully introduced to the market, the sales and profits should increase.
How can a company benefit from growth?
The company will benefit from economies of scale
How to keep sales buoyant and help product recognition?
Continued advertising and promotion is important to keep sales buyout and help product recognition
What is vital for product growth from customers?
Word of mouth recommendations and continued use of testimonials and good reviews from satisfied users is vital.
What is vital for product growth from customers?
Word of mouth recommendations and continued use of testimonials and good reviews from satisfied users is vital.
What can help a product’s profile and further drive sales?
Entering trade awards and competitions can help raise a product’s profile and further drive sales.
What is maturity?
A product that has been successful in the market and is selling well before it reaches a peak in sales.
What is a facelift?
It is when the product may evolve further or be superseded by a newer model or version often called a ‘facelift’ to keep it fresh and in fashion.
What happens to the market competition and the slow sales during maturity?
Market competition may increase and slow sales growth
What does advertising need to focus on?
Advertising needs to focus on brand identity, the benefits it has over the competition and promotional offers.
What happens when a product declines?
The product’s success reduces and sales decline as the market eventually shrinks.
What could happen in the decline stage of a product?
- This leads to less investment in further developments
- The market may be saturated with similar products
- The competition may supersede the original product
- The product may not be as successful in consumer opinions.
- Products may fall out of fashion or become redundant due to newer technologies or materials becoming available
What factors can occur in the decline stage of a product?
External events may trigger decline, such as government rulings, environmental issues or changes in cultural, moral or environment opinion.
What happens in the replacement stage of a product?
Usually, before a product is taken off its market, its successor has been launched and is in growth stage so the evolution of the product continues.
What could happen when a product is withdrawn from sales?
When a product is withdrawn from sale it may still have a decent repair and maintenance market, therefore making spare parts available may be an option.
