Product Life Cycle

Question 1

What are the 4 Stages of a Product Life Cycle

Answer 1

• Introduction (and evolution)
• Growth
• Maturity
• Decline (and replacement)

Question 2

What is the Introduction (and evolution) phase

Answer 2

The early stages of a product’s life

Question 3

What is the Growth phase

Answer 3

When the popularity of the product rises and sales build

Question 4

What is the Maturity phase

Answer 4

When sales peak and the product finds its place in the market.

Question 5

What is the Decline (and replacement)

Answer 5

When the product achieves fewer sales and popularity recedes

Question 6

What Happens Before Product Launch?

Answer 6

Designers and manufacturers have to spend a lot of time and money on research and development (R&D).

Question 7

What are Designers aiming for with Products (what are they planning)

Answer 7

It can take time for products to break even, but it is in the maturity phase where most of the money is made.

Staying in the maturity phase as long as possible is the goal, therefore this needs to be planned before launch

Factoring in built in or planned obsolescence is also part of pre-launch planning

Question 8

What is Built in Obsolescence

Answer 8

Designers must consider the expected product life length, so they design the products to last a certain period of time.

Question 9

Why are some products designed with Planned Obsolescence

Answer 9

• Some products are required to decompose or fail during use
• To enable updated products to be successful, older products will need to be replaced.

Question 10

How is the Introduction of a product important

Answer 10

A product’s launch needs to be timely to avoid external factors diminishing the impact.

Question 11

What can affect when the Introduction of a product takes place

Answer 11

• Competition from similar brands can reduce early sales
• Selecting the correct time of year can be very important for some seasonal products.

Question 12

What is the Evolution period of a product

Answer 12

Once a product is introduced to the market is a settling-in period where early issues may appear.

Question 13

What can happen during a product’s evolution period?

Answer 13

• The price may need adjusting early on to drive sales
• Lots of returns could happen due to poor performance or faults
• Design changes may need to be made to improve the product
• Updated versions could ‘evolve’ the product’s life
• Initial success will be influenced by marketing, targeting user groups and consumer satisfaction

Question 14

How are sales and profits affected in the Growth Stage

Answer 14

If the product has been successfully introduced to the market, then sales and profits should increase.

Question 15

What happens during the Growth Stage

Answer 15

• The company will benefit from economies of scale
• Continued advertising and promotion is important to keep sales up and help product recognition
• Word of mouth recommendations and good reviews from satisfied users is vital
• Entering trade awards and competitions can help raise a product’s profile and further drive sales

Question 16

How are sales and profits affected during the Maturity Phase

Answer 16

The product has been successful in the market and is selling well before it reaches a peak in sales

Question 17

What happens during the Maturity phase

Answer 17

• The product could have evolved further or be succeeded by a newer version. This can be referred to as a ‘facelift’ if keep it fresh and in fashion.
• Market competitiveness may increase and slow sales growth
• Advertising need to focus on brand identity, the benefits it has over the competition and promotional offers.

Question 18

How are sales and profits affected by the Decline phase

Answer 18

The product’s success reduces and sales decline as the market eventually shrinks.

Question 19

What happens during the Decline phase

Answer 19

• 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 could fall out of fashion or become redundant due to new technologies or materials emerging
• External events could start a decline, like government rulings, environmental issues, or changes in cultural or moral opinions.

Question 20

How are sales and profits affected by the Replacement phase

Answer 20

Before a product is taken off the market, it’s successor has been launched and is in the growth stage so the evolution of the product continues.

Question 21

What happens when a product is withdrawn from sale

Answer 21

When a product is withdrawn from sale it may still have a decent repair and maintenance market, therefore making spare parts available may be a option