The marketing strategy - Product Flashcards
1
Q
what is the product life cycle?
A
a theoretical model which describes the stages that a product goes through overtime
2
Q
what are the stages of the product life cycle?
A
- introduction
- growth
- maturity
- decline
3
Q
what is introduction like?
A
- researching, developing product
- penetration or skimming price
- poor cash flow
4
Q
what is growth like?
A
- sales increase fast
- promotion costs = high
- increased distribution
5
Q
what is maturity like?
A
- lower prices/discounts
- weak rivals will leave market
- competitive market
- positive cash flow
- innovate product
6
Q
what is decline like?
A
- less demand
- changing trends/tech
- less distribution
- reduce price
7
Q
what is the benefit and negative of the product life cycle?
A
+ can indicate when an extension strategy is needed
- only shows one product
- no external factors shown
8
Q
what are the ways of extending a product’s life?
A
- innovation
- promotion
- reduce price
- new markets
- add value
