Product Life Cycle

• What is the product life cycle?

  Stages a product goes through from conception to removal
• Why is the product life cycle important in marketing?

  It helps understand product stages and market strategies
• What are the main stages of the product life cycle?

  Research & development, Introduction, Growth, Maturity, Decline
• What occurs during the research & development stage?

  Researching and developing a product before sale
• What happens during the introduction stage of the product life cycle?

  The product is launched into the market
• What characterizes the growth stage of the product life cycle?

  Sales are increasing at their fastest rate
• What occurs during the maturity stage of the product life cycle?

  Sales are near their highest, but growth slows
• What is the decline stage in the product life cycle?

  Final stage when sales begin to fall
• How can more research and development impact the product life cycle?

  It reduces the risk of market failure
• What effect does reducing price have on a product?

  It makes the product more elastic and sells stock quickly
• What strategies can businesses use to extend the product life cycle?

  • Advertising to new or existing audiences
  • Price reduction to attract customers
  • Adding value with new features
  • Exploring new markets geographically
  • New packaging to refresh the product
• What is the purpose of extension strategies in the product life cycle?

  To extend growth and maturity phases, delaying decline
• What is an example of an extension strategy?

  Advertising to gain a new audience
• How does adding value to a product help in the product life cycle?

  It improves specifications and attracts customers
• What does exploring new markets involve?

  Selling the product in new geographical areas
• What is the significance of new packaging in extending the product life cycle?

  It can refresh the product's appeal to consumers
• What is a limitation of the product life cycle model?

  It is simplistic and may not predict all products
• Why might some products not follow the classic shape of the product life cycle?

  They may be replaced by superior products quickly
• What can happen to products with particularly long life cycles?

  They may enjoy a prolonged maturity phase