Product Life Cycle

• What is the theoretical model discussed in the video?

  Product life cycle
• What does the product life cycle model predict?

  Stages of sales growth for a product
• How can the product life cycle model be useful for businesses?

  Forecasting sales and assessing product stages
• What are the five stages of the product life cycle?

  Development, introduction, growth, maturity, decline
• What is the first stage of the product life cycle?

  Development
• What happens during the introduction phase?

  Sales grow slowly as the product is adopted
• What characterizes the growth phase of the product life cycle?

  Steep increase in sales performance
• What occurs during the maturity phase?

  Sales growth slows but may still increase
• What indicates the decline phase of a product?

  Sales start to decline significantly
• What is a key characteristic of the development stage?

  No sales occur before product launch
• Why is promotion important in the introduction stage?

  Most target customers are unaware of the product
• What pricing strategy might be used during the introduction stage?

  Penetration pricing or premium pricing
• What is the goal during the growth stage?

  Maximize the strength of the growth phase
• What happens to unit costs during the growth phase?

  Unit costs start to fall due to economies of scale
• What is a common challenge in the maturity stage?

  Intense competition for market share
• What strategies can be used to extend the maturity phase?

  Repositioning, finding new users, and new uses
• What characterizes the decline stage?

  Sales are falling and profits decrease
• What can cause a product to enter the decline stage?

  Technological change and shifts in consumer preferences
• What should businesses do during the decline phase?

  Cut back on marketing and spending
• Why is the product life cycle considered a theoretical concept?

  It does not predict exact sales for products
• What is a product that has remained in the maturity phase?

  Heinz baked beans
• What is a product currently in decline?

  DVDs
• What are the stages of the product life cycle?

  • Development
  • Introduction
  • Growth
  • Maturity
  • Decline
• What are the key strategies for each stage of the product life cycle?

  • Development: Research and development
  • Introduction: Heavy promotion and pricing strategy
  • Growth: Maximize distribution and market share
  • Maturity: Repositioning and extension strategies
  • Decline: Cut back on spending and marketing
• How does technological change affect the product life cycle?

  • Shortens product life cycles
  • Forces innovation to stay competitive
  • Can lead to rapid decline of products