Product Life Cycle Flashcards
What is Research and Development?
First stage of a products life cycle.
Used to develop an idea into a marketable product.
What is one aim during product development?
To find the most cost-effective materials and methods to use.
What happens in the introduction?
The product is launched and put on sale for the first time. Usually backed up with a lot of advertising and sales promotions.
Why is Place important in the introduction?
There’s no point launching a product where nobody will be interested in buying it.
What happens during Growth?
Demand increases, until the product has become established.
What happens during Maturity?
Demand reaches its peak.
Promotion becomes less important.
What is the businesses aim during Maturity?
Businesses will try to make the product more widely available.
Towards the end of the Maturity phase…
market becomes saturated and there’s no more room to expand.
What happens during Decline?
Demand starts to fall as rival products take over.
