Product

• Product life cycle: The stages a product goes through from conception to discontinuation.
• development:

  when the product is being designed and tested before it’s launched.

  • no sales
  • market research - testing and generating ideas
• Extending product life:

  1. differentiation
  2. reduce the price
  3. repositioning to a new market
  4. increasing promotion
• Introduction:

  when the product is first put onto the market

  1. slow sales
  2. customers are reluctant to change from existing brands
• Growth:

  when sales start to rise and product becomes popular

  1. rapidly rising sales
• Maturity:

  established product where sales are high but growth slows

  1. sales stabilise
  2. less promotion - last many years
• Decline:

  when product becomes old and out dated

  1. sales decline
  2. cut off all promotion