Product life cycle
Why do firms want to extend the product life cycle?
- To maximise sales revenue from a particular product
- To reduce the risk of creating and selling a new product in the market.
How do firms extend the product life cycle?
- Backward innovation (VW Beetle in Mexico)
- Extension strategies (marketing strategies).
What is backward innovation?
Backward innovation is when a business markets an existing product in a developing country, in order to increase sales revenue from this saturated product.