product: product life cycle Flashcards
what does it mean if every product has a life cycle?
it will not last forever in the market
what can a product life cycle be?
long like a piece of furniture or short like fashion trainers
what does it mean if products are at the end of their life cycle?
need replacing or rejuvenating
rejuvenating
to restore/renew
what does an enterprise need to know?
where each of their products is positioned within the life cycle
when will enterprises deicide on an extension strategy?
at the maturity stage or before products enter the decline stage
what is the product development?
1. what does it develop?
2. what do they currently not have?
3. what high costs do they have?
the enterprise develops a new product
there are no sales or profits
the enterprise has high investment costs
what is the introduction?
1. what is onto the market?
2. what will sales be like?
3. why are there no profits?
product is launched onto the market
sales grow slowly
there are no profits because the high investment costs outweigh the number of sales
what is the growth?
if introduction is successful, sales grow rapid and profits starts to increase
maturity:
how are customers becoming loyal?
sales growth slows down but repeat customers continue to buy
maturity:
why does the market become saturated?
as competitors bring out similar rival products
what is market saturation?
which a product or service has reached its maximum potential in a particular market. This means that further growth is unlikely without expanding to new markets or making significant changes.
maturity:
why does profits level off or start to decline?
as enterprise has to increase its spending on marketing
decline:
what will the product eventually become?
outdated
decline:
what does it mean if there is a fall in sales?
no profits which leads to the product being withdrawn from the market
what are extension strategies a way of?
increasing the shelf life of a product
what do extension strategies involve?
changing the product slightly so that it has a fresh appeal the target market or it appeals to a new target market
what is one example of an extension strategy?
mars and snickers developed ice cream versions of their popular chocolate bars
what is selling in new markets another way of?
extending the life cycle of a product
what can an enterprise do to sell to a new segment of a the same market?
selling in a different country or area
