Product Life Cycle Flashcards
Whats are the stages of the product life cycle ?
Introduction ( and evolution ) - the early stages of the products life
Growth - popularity in the product rises and sales build
Maturity - sales peak and the product finds its place in the market
Decline ( and replacement ) - Product achieves fewer sales popularity recedes
What happens before the product launches ?
Designers and manufacturers have to spend a lot of money on R&D - this includes machinery, tooling, materials and staffing costs before any money is recouped
It can take a long time for products to break even - they might not even at all
During what stage is the most profit made ?
It’s the maturity stage where most of the profit is made
Whats the goal for a product in relation to the product life cycle ?
The goal for the product is to stay in the maturity phase as long as possible - therefore this needs to be planned before launch
Whats another part of pre-launch planning apart form planning the product to stay in the maturity stage ?
Factoring in built in or planned obsolescence is also part of pre-launch planning
What is obsolescence ?
Obsolescence refers to the process by which a product or technology becomes outdated, no longer competitive, or no longer useful.
What must designers consider when making a product ?
Designers must consider when the obsolescence of the product will be - for example if you make a high quality item you would expect it to last a long time
What does changing trends lead to ?
Changing trends lead to obsolescence
What has to happen in order for the updated products to be successful ?
TO enable the updated products to be successful, older products need to be replaced
Why does the products launch need to be timely ?
TO avoid external factors diminishing the impact:
- Like for example competition from similar brands can reduce early sales
- Or for example selecting the correct time of year is very important for seasonal products
After a product is introduced into the market there is a settling-in period and what could happen during this period ?
This is where early issues may occur such as:
- Poor performance and returns due to faults may occur - and this is why customers service is important - to keep faith in faulty products
How will initial success happen in the product ?
Initial success will be influenced by marketing, targeting user groups and consumer satisfaction
What might need to happen to the price point at the start of the products launch ?
The price point might need adjusting early on to drive sales
What might happen if the product is successful ?
Then the initial user group will expand
If the product has been successfully introduced to the market what will happen ?
Sales and profits should increase
What is important to do to keep sales healthy and to help the product recognition ?
Continued advertising and promotion
What happens during the maturity part of the product life cycle ?
The product has been successful in the market and is selling well before it reaches a peak in sales
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
During this time - market competition may increase and slow sales growth
Advertising may need to focus on brand identity, the benefits is has over the competition and promotional offers
What happens during the decline stage of the product life cycle ? And what does this lead to ?
The products success reduces and sales decline as the market eventually shrinks and this lead to less investment in further developments
The market may be saturated with similar products
the competition may supersede the original product
Your 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
External factors may also trigger a decline - such as government ruling, environmental issues or changes in cultural, moral or environmental opinion
What happens during the replacement part of the product life cycle ?
Usually, before a product is taken off the market, its successor has been launched and is in the growth stage so the evolution of the product continues
Also, 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
What does it means if a product has been ‘built in obsolescence’ ?
“Built-in obsolescence” (or planned obsolescence) refers to a strategy where a product is deliberately designed to have a limited useful life, so it will become outdated or non-functional after a certain period. This often encourages consumers to purchase the latest version or replacement sooner than they might have otherwise, thereby driving sales and maintaining demand. This can be achieved through various means, such as using materials that wear out quickly, designing products that are difficult to repair, or regularly releasing new models with minor improvements.
