Topic 2 Flashcards
the length of time from a product first being introduced to consumers until it is removed from the market
Product life cycle (PLC)
4 stages of product life cycle/ marketing implications of PLC
Introduction
Growth
Maturity
Decline
Importance of PLC
important tool for marketers, management and designers alike
It specifies
four individual stages of a product’s life and offers guidance for developing strategies to make the best
use of those stages and promote the overall success of the product in the marketplace
Product life cycle
Importance of product life cycle (8)
Helpful in sales forecasting
Helpful as a predictive tool
Helpful in planning tool
Helpful as a control tool
Helpful in framing marketing programme
Helpful in price determination
Development of new product
Comparison of different products
Introduction (5)
- Low sales
- High cost per customer
- Financial losses
- Innovative customers
- Few (if any) competitors
Growth (5)
- Increasing sales
- Cost per customer falls
- Profits rise
- Increasing number of customers
- More competitors
Maturity (5)
- Peak sales
- Cost per customer lowest
- Profits high
- Mass market
- Stable number of competitors
Decline (5)
- Falling sales
- Cost per customer low
- Profits fall
- Customer base contracts
- Number of competitors fall
It is a high-level plan that defines your product goals throughout its life cycle and how it will support its organizations goal
Strategic planning of new product
It answers: who the product will serve and how will it benefit them
Strategic planning of new product
These plans are being brought to life on the roadmap
Strategic planning of new product
Four strategies of new product development
Market penetration
Market development
Product Development
Diversification
Focus on introducing new products to existing markets
Product Development
Focus on entering a new market using existing products
Market development
