3.4d Product Life Cycle Flashcards Preview

Business Studies AS > 3.4d Product Life Cycle > Flashcards

Flashcards in 3.4d Product Life Cycle Deck (11):
1

The product life cycle is short if

- Rate of technological change is rapid
- Product is a fashion item
- It is badly marketed

2

What can product life cycle be used for?

- Forecast future behaviour of sales
- Assist marketing strategies
- Identify deviations from the norm

3

Stages of product life cycle

1. Development
2. Introduction
3. Growth
4. Maturity
5. Decline

4

What does the development stage involve?

- Research and development
- Market research
- Test marketing

5

Is a loss or profit made in development?

Loss

6

In what stage of the product life cycle is product and customer loyalty established?

Maturity stage

7

Different extension strategies

- Modify product
- Change promotion
- Change price

8

Strategies for decline stage

- Maintain market share
- Spend little on promotion
- Weed out product variations
- Price cut

9

Product portfolio definition

Mix of products produced by a single firm

10

Balanced portfolio definition

Portfolio in which the firm has a variety of products at different stages in the product life cycle

11

Criticisms of product life cycle

- Shape and duration of cycle varies
- Difficult to recognise exactly where product is in life cycle

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