Product Life Cycle

• What is a marketing strategy?

  A set of plans to achieve a marketing objective
• What are examples of obsolete products?

  • Blackberry phones
  • VCR
  • Telephone boxes
  • Typewriter
  • Rotary phones
  • Cassette tapes
  • Jukeboxes
  • Fax machines
  • Floppy disks
  • Mixing
• What happens during the decline stage of the product life cycle?

  Sales decrease as demand shrinks
• What costs exist during the decline stage of the product life cycle?

  Only production costs exist
• What indicates that a product should be withdrawn during the decline stage?

  If the product starts to lose money
• What characterizes the introduction stage of the product life cycle?

  Sales are low but fast growing
• What costs are high during the introduction stage of the product life cycle?

  Marketing and R&D costs are high
• What happens during the growth stage of the product life cycle?

  Sales start to rise
• How do costs change during the growth stage of the product life cycle?

  Costs start decreasing due to economies of scale
• What is an extension strategy in marketing?

  • Tries to prolong the life of a product
  • Achieved through:
  • Promotion (advertising, celebrity endorsements)
  • Offers
  • Improvements
• What occurs during the maturity stage of the product life cycle?

  Sales are still increasing but at a slower rate
• What is the cost situation during the maturity stage of the product life cycle?

  Costs are low due to economies of scale
• What is the profit situation during the maturity stage of the product life cycle?

  Profits are at their highest
• What happens during the decline stage regarding costs?

  Costs in R&D and production exist
• What is an example of a product in the decline stage?

  Landline telephones
• What is an example of a product in the introduction stage?

  Chat GPT
• What is an example of a product in the maturity stage?

  Coca-Cola
• What is an example of a product using an extension strategy?

  GTA 5
• How does promotion help in an extension strategy?

  It helps to enlarge the life of a product
• What are the methods used in an extension strategy?

  Offers, advertising, celebrity endorsements