Product Life Cycle Flashcards
What is the product life cycle?
The stages that a product goes through from its introduction to marketing to when it is thrown away or recycled
What is the first stage?
Introduction- when the product is launched
What is the second stage?
Growth- when sales go up, manufacturing costs go down, profits increase and other competitors introduce similar products
What is the third stage?
Maturity- when the product is well known an sales are high, but there are more competitors, you may have to reduce the price if there are fewer new customers
What is the fourth stage?
Evolution- you can change the design a bit to make it better or relaunch the product
What is the fifth stage?
Decline- sales fall and profits shrink, eventually the product is withdrawn from sale and replaced by a new one
