Product Life Cycle Flashcards
What does the life cycle show?
The sales of a product overtime
Why is the life cycle valuable?
For planning marketing strategies and changing the marketing mix
What is the 1st stage of the product life cycle?
Development
What happens in development?
R&D develop the product and marketing does research
What is the 2nd stage of PLC?
Introduction
What happens in introduction?
Product is launched and promoted heavily
What is the 3rd stage of the PLC?
Growth
What happens in Growth?
Sales grow fast and there are repeat customers. Improved or developed product
What is the 4th stage in the PLC?
Maturity
What happens in maturity?
Sales reach a peak and start to drop
What is the 5th stage in the PLC?
Decline
What happens in decline?
Doesn’t appeal to customers - sales fall and profits decrease
What are extension strategies?
Strategies to prolong the life of the product by changing the marketing mix
What is product development?
Improve or redesigning a product.
What is market development?
Businesses find new markets or new uses for existing products