b) Product

• Define the term product lifecycle 


  The concept of the lifespan of a product is illustrated by the product lifecycle, this shows the path of a product throughout its life. This lifecycle can be divided into 5 groups; development, introduction, growth, maturity & saturation and decline
• Label the product lifecycle

  
• Explain the development stage of a products lifecycle

  The development stage is before a product is put on the market, therefore sales are zero. During this stage extensive market research is carried out which may include test marketing
• Explain the introduction stage of a products lifecycle


  This stage is when the product is fully launched onto the market, it is typically characterised by slow sales growth because consumers are often reluctant to try new products
• Explain the growth stage of a products lifecycle



  Sales grow rapidly as most people have become aware of the product, the business has also achieved a degree of customer loyalty.
• Explain the maturity stage of a products lifecycle


  This is the longest and most common stage for most markets and if often the most profitable. Sales continue to grow during this phase but at a much slower rate. Businesses begin to look at modifying products to extend its lifecycle as the saturation point is reached
• Explain the decline stage of a products lifecycle

  Sales will have fallen so much where they are not covering manufacturing costs and the product is therefore unprofitable. The business would try to extend this stage for as long as possible or at least while stocks last
• Explain 3 ways the product life cycle can be extended

  The first way to increase its life is to modify the product to make them look different or superior to the original.

  the second way it can be extended is to increase the advertising as frequent advertisements remind customers about the product and persuade them to buy it

  The last way is to reduce the price as lower prices could attract additional custom