product lifecycle Flashcards
1
Q
What is a product lifecycle?
A
a theoretical model which predicts the stages a product goes through during its life
2
Q
Development stage
A
- absorbs lots of resources
- probably not successful
- long lead time before sales are achieved
3
Q
Introduction stage
A
- low sales
- heavy promotion to make costumers aware
4
Q
growth stage
A
- fast growing sales
- cash flow may become positive
5
Q
Maturity stage
A
- slower sales growth as rivals enter the market
- low unit costs
6
Q
decline stage
A
- falling sales
- fall in profits, weak cash flow
