product lifestyle

• introduction


  at this stage the product will be launched

  sales are usually often slow

  costs: new product line, promotion

  the length of the stage can change
• Growth 


  happens when the product is established and consumers are aware of it

  sales may grow quickly

  unit costs may fall as the product increases: the product becomes profitable

  competitors may launch their own version of the product if it is a new one
• Maturity 


  The sales will level off

  Sales will have peaked and competitors will be in market which will become saturated

  Many business will use extension strategies

  buisness are forced out
• Declines


  New technology, customer taste and new products

  The product get withdrawn
• extension strategies 


  They try and prolong life before a product starts to decline
• How do business use extention statagies 


  They prolong it by freshening it up making:

  updated models

  adding value

  changing the packaging
• Promotion 


  the companies try and make new uses for the products instead of taking it of the shelves.
• Boston matrix what does rising star mean

  product with a high market growth and relatively high market share.
• Boston matrix what does cash cows mean

  Products with a relatively high market share likely to be profitable but weak growth in the market. Little need for investment
• Boston matrix what does question mark mean

  product with a relatively low market share in fast growing market. May provide high profit in the future but no guarantee of success. Investment is needed for sales.
• Boston matrix what does dog mean

  product with low market share in a low growth market. Poor perspectives for future sales and profit. May generate positive net cash flow.