Product Life Cycle Flashcards
What is Product Life Cycle?
This refers to the length of time a business expects to sell a product. This will last many years for successful products but potentially only weeks for others.
What are the 5 stages of the Product Life Cycle?
Research and Development
Introduction
Growth
Maturity
Decline
What is Research and Development?
Money which is invested into developing the product, carrying out research and making a prototype (GAPTAP). The business is making a loss at this stage.
What is Introduction?
The product is launched onto the market. The product is heavily advertised to inform customers. Sales will be low at this stage with little to no profit.
What is Growth?
The producing is becoming more well known and popular. Advertising continues but at a lower rate than before. Sales are rapidly increasing. Profits are beginning to be made.
What is Maturity?
Sales and profits have reached their peak. The product is well established on the market. Advertising is used only as a reminder. New models/variation may be introduced to encourage long term sales.
What is Decline?
The product popularity has fallen. Sales and profits are falling. There is strong competition in the market.
