13 marketing_product_life_cycle

13 marketing_product_life_cycle - Extension strategies...

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tutor2u GCSE Business Studies Product life cycle The product life cycle is an important concept in marketing because it describes the stages a product goes through from when it was first thought of until it finally is removed from the market. Not all products reach this final stage. Some continue to grow and others rise and fall. The main stages of the product life cycle are: f Introduction – researching, developing and then launching the product. f Growth – when sales are increasing at their fastest rate. f Maturity – sales are near their highest, but the rate of growth is slowing down, e.g. new competitors in market or saturation. f Decline – final stage of the cycle, when sales begin to fall. This can be illustrated by looking at the sales during the time period of the product. A branded good can enjoy continuous growth, such as Microsoft, because the product is being constantly improved and advertised, and maintains a strong brand loyalty.
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