product lifecycle Flashcards
What is the product lifecycle
The theory that a product moves through different stages: introduction, growth, maturity, and decline
What are the five stages of the product lifecycle (rat is good ᴬᵗ making donuts)
Research and development
Introduction
Growth
Maturity
Decline
What is the research and development phase
- Developing an idea and turn it into a marketable product
- Investing money loss is made
What is the introduction phase
- Launch of the product
- Lots of promotions and advertising
- Place is an important factor
What is the growth phase
- Demand increases
- Product becomes established
What is the maturity phase
- Demands reaches peak
- Promotion and advertising is less important
- More widely available
- Saturated market
What is the decline phase
- Demand starts to fall
- Competition products take over
Overview of product lifecycle
- Development and research-time and money is invested for research and development.Sales are low and a loss is usually made .
- Growth and maturity- business hopes revenue can pay back initial investments and make a profit
- Decline-less money invested, a loss will begin unless the product is removed.
What is an extension strategy
It’s extending the product lifecycle at its decline stage to maximise the life of a product and make it make profit for longer
List the types of extension strategies
- Adding more or different features
- New packaging design
- Targeting new target markets
- Changing advertising
- Lowering price
How does adding more or different features extend the life of a product
New features may increase demand For the product making it more useful or appealing for customers
How does a new packaging design extend the life of a product
New packaging design can make the product more eye catching making customers more likely to buy it or attract a new target market
How does targeting new target markets extend the life of a product
By targeting a new market like age or income they can target their promotional material at the new markets therefore extending the life of the product
How does changing advertisements extend the life of a product
By running a new advertising campaign, more people may become aware of the product or promote in in a way that makes it more appealing.
How does lowering the price of a product extend the life of a product
Lower price using special offers or competitions can attract people to buy the discounted product.
