product lifecycle

Question 1

what is the product life cycle

Answer 1

technique used to track the stages a product goes through during its life

Question 2

3 positives of product life cycle

Answer 2

-easier to predict in industries with few changes
-used to assess whether the launch of a product is feasible
-give an idea for how long till profit is made

Question 3

3 negatives of product life cycle

Answer 3

-exact lifespan is never known
-P lifecycles are getting shorter as customers desire new products leading to more expensive+ intense marketing
-less useful in times of change

Question 4

what happens in the development stage

Answer 4

-prepare launch by generating and analysing ideas
-includes test marketing
-no sales revenue, negative cashflow

Question 5

what happens in the intro stage

Answer 5

-launch , sales price slow (customers reluctant to unknown products)
-cashflow still negative to marketing costs

Question 6

what happens in growth stage

Answer 6

-product becomes more popular
-retailers offer more shelf space
-now cheaper to produce product- more profit
-more brand recognition

Question 7

what is the maturity stage

Answer 7

-profit+sales stabilise
-known as saturation if market also stabilises
-less money for marketing, low production costs- create high profits

Question 8

what is the decline stage

Answer 8

-product sales eventually fall
-if a product is in decline firm may decide to female product to prevent financial losses

Question 9

development stage strategy

Answer 9

-have balance of early developing products and mature products so they can finance the developing products

Question 10

intro stage strategy

Answer 10

-low prices- make sure customers know its short term- or high price depending on the market
-promotion+advertising
-encourage shelf space

Question 11

growth stage strategy

Answer 11

-modify product
-target new market segments (through promotions, changing price etc.)

Question 12

maturity stage strategy

Answer 12

-keep products in this stage as long as possible
-attract new market segments
-modify product
-price offers

Question 13

decline stage strategy

Answer 13

-cutting advertising expenditure
-take product off market