Flashcards in 3.4d Product Life Cycle Deck (11):
The product life cycle is short if
- Rate of technological change is rapid
- Product is a fashion item
- It is badly marketed
What can product life cycle be used for?
- Forecast future behaviour of sales
- Assist marketing strategies
- Identify deviations from the norm
Stages of product life cycle
What does the development stage involve?
- Research and development
- Market research
- Test marketing
Is a loss or profit made in development?
In what stage of the product life cycle is product and customer loyalty established?
Different extension strategies
- Modify product
- Change promotion
- Change price
Strategies for decline stage
- Maintain market share
- Spend little on promotion
- Weed out product variations
- Price cut
Product portfolio definition
Mix of products produced by a single firm
Balanced portfolio definition
Portfolio in which the firm has a variety of products at different stages in the product life cycle