Product Lifecycle
- Created by: Rhys Cummins
- Created on: 23-04-13 22:56
Introductory stage.
Growth stage.
Maturity.
Decline.
Introductory stage:
-High failure rates.
-Lots of modification.
-Negative profits.
-Large amounts spent marketing to raise awareness and inform.
-Low sales increase.
-Aim to stimulate primary demand.
-Limited distribution due to many distributors not wanting to take on new products.
-Low economies of scale.
-Low competition.
-Innovative buyers
-Lots of promoting to end-users and dealers.
Growth stage:
-Mass media advertising of brand image.
-Promotion may be used instead of price cutting, having the same effect but keeping up sales revenue.
-Entrance of competition.
-Wider distribution.
-Increase market share, often sacrificing short term profitability.
-Aggresive advertsising comparing other brands.
-Initial healthy profits.
-Lower cost per customer.
Maturity:
-Fight of competition.
-Generate profits.
-Market brand strengths.
-Maintain distribution.
-Increase in sales decreases, new customers are just replacing old ones.
-Yearly models appear.
-Saturated market.
-Service and repair become more important (Kobo).
-Lengthened product line.
-Niche markets appear.
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