Flashcards in Marketing- Product Lifecycle Deck (10)
What is a product life cycle?
It is said that a product has a natural life span through which it passes until it is withdrawn from the market. Some products will have longer life cycles than others.
How can the lifecycle of a product be prolonged?
By using extension strategies
What is the development stage?
Takes place before the product starts its life on the market
The costs involved can be very high
A large number of products never get past this stage
What is the introduction stage?
When the product is launched into the market
Heavy spending is needed to advertise and sales are slow at this point
What is the growth stage?
During this stage consumers become more aware of the product and sales start to grow rapidly
During this stage the product begins to become profitable
What is the maturity stage?
This is when sales reach their peak
This is the highest level of sales that the product can achieve without the business taking some action
What is the decline stage?
When sales and profits start to fall
New and better products emerge
What are extension strategies?
Methods employed by the business to prolong the life of their products and stop them going into the decline stage
Name 6 extension strategies
Change the price
Improve the product
Find new markets
Change the packaging
Add new features
If successful these will increase interest in the product and keep competition out of the market, thus increasing sales