Product Life Cycle Flashcards
Whats the 5 stages of a product life cycle
Development
Introduction
Growth
Maturity
Decline
What is the development stage
This is where the product gets researched and developed, time will be spent looking into costs of the product.
What’s the introduction phase
Products launched
Sales of the products begin to occur
Product image grows, due to promotion of the product
Whats the growth phase
The product sales begin to increase faster
Growth phase time can vary within products
Product will become profitable
Competitors become aware
Whats the maturity phase
Products reach there peak
Competitors will increase
Sales slowly start to decrease at the end of this stage as customers might drift to buy other competitors products
Whats the decline stage
Declines vary as for some products the sales might drop slowly, whereas for other products sales might rapidly decrease.
Could be due to the launch of new and improved products or change in customers taste.
Product still getting sales!!! (Just not as many)
What could a business do during the decline phase
Just let the products sales decline and don’t want to spend any more money promoting and advertising the product.
Rejuvenate a product, to boost sales back up again-tactic will be needed, extension strategies (tactics to boost the declining stage of a product back up again)
Could target new maker segments that might be interested within the product.
How to prolong the products life cycle
Updating the product
Adding value (better looking)
Extending product range (different colours, sizes)
Changing the packaging
Whats a benefit for the product life cycle
Help managers predict, new product development
Help managers predict, the length of the product life cycle and can them help plan budgets and cash flows.
Whats a limitation of a product life cycle
Only a prediction/estimate might not be correct and unreliable.
