Product Life Cycle

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  • Product life cycle p.18-21
    • Definition
      • the stages through which a product passes from its development to being withdrawn from sale.
        • Phases of product life cycle
          • research & development
            • The process of scientific and technological research and then development of the findings of that research before a product is launched
          • launching the product
            • Sales rise
            • Getting a product beyond this stage normall requires costly promotion activity.
            • Introductionary price will help to push the product
            • Heavily promote product to make target market aware of it
          • growth
            • Sales rise
            • Selling price might be be reduced to customers
            • Continued advertising around the brand name will help to sustain sales.
          • maturity
            • Sales flatten out
            • Marketers might add added value onto the product at this stage
              • E.g offering insurance or acessories
          • saturation
            • Sales start to decline
            • Eventually likely to go into decline.
          • Decline
            • Sales decline
            • Marketing can't save the product at this stage, but targeting a different and smaller segment can prolong its life.
    • Extension strategy
      • Definition
        • method used to increase the life of a product and prevent it falling into decline

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