Stages that a product goes through

Cards (6)

  • Development - negative cash flow due to market research and R&D
  • Introduction - production and promotion costs can be high
  • Growth - sales revenue increases but as more units are sold production costs also increase
  • Maturity - sales stabilise and the product acts as a cash cow
  • Decline - at some point the product will start to lose sales
  • Extension strategies - many products are adapted and given a new lease of life