The Product Life Cycle stages show the path of a product from the very beginning, through to its withdrawal from the market.
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What are the six stages of the PLC?
Research & Development, Product Launch & Introduction, Growth Phase, Product Maturity, Saturation and Decline.
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What is research and development?
This takes place before the product is on the market. It is still being designed and tested. This can be expensive and take a long time for complex products.
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How are inflows and outflows in the R&D stage?
No inflows, high outflows.
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What is product launch & introduction?
The product is first launched. It will be heavily advertised to raise awareness. Sales are slow at the start, but increase. Profit is unlikely at this early stage.
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How are inflows and outflows in product launch and introduction?
Few inflows, high outflows.
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What is growth phase?
Sales grow rapidly. Most people know about the product. Lots of people are using it, so there's customer loyalty. Profit is likely now.
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How are inflows and outflows in growth phase?
Some inflows, some outflows.
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What is product maturity?
People keep using the product. Sales levels are maintained, so it becomes difficult to increase sales.
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How are inflows and outflows in product maturity?
High inflows, low outflows.
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What is saturation?
Sales are their highest. Competition is intense. Sales have been pushed as far as possible. New customers cannot be found.
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How are inflows and outflows in saturation?
High inflows, low outflows.
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What is decline?
Sales start to fall. The product becomes unprofitable.
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How are inflows and outflows in decline?
Falling inflows, low outflows.
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At what stage do businesses come up with extension strategies?
Between saturation and decline.
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What are some extension strategies?
Different varieties, packaging modification and updates, increasing advertising, cutting prices, rebranding and targeting a new market.
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Other cards in this set
Card 2
Front
What are the six stages of the PLC?
Back
Research & Development, Product Launch & Introduction, Growth Phase, Product Maturity, Saturation and Decline.
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