Lifecycle Product lifecycle Development stage Lots of market

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Lifecycle

Lifecycle

Product lifecycle

Product lifecycle

Development stage Lots of market research carried out n Research and development n Prototypes

Development stage Lots of market research carried out n Research and development n Prototypes made n Period of high costs n

Introduction stage This is when the product is launched and first goes on sale.

Introduction stage This is when the product is launched and first goes on sale. n Market research will have been done. n Lots of advertising takes places at this time to raise peoples awareness of the product. n

Growth Stage Sales show their most rapid rise in this stage. n People become

Growth Stage Sales show their most rapid rise in this stage. n People become more aware of the products existence. n Product is in high demand. n

Maturity Stage Sales are towards their highest. n Rate of growth slows down. n

Maturity Stage Sales are towards their highest. n Rate of growth slows down. n Advertising is needed to hear to keep the product in peoples minds and therefore competitive. n

Saturation Stage Growth stops at this stage. n The sales are high but not

Saturation Stage Growth stops at this stage. n The sales are high but not getting larger. n Decisions have to be made about what to do with the product: n Extend the life of the product by advertising or differentiation n Let the product go into decline. n

Decline Stage Sales begin to drop. n People no longer want to buy the

Decline Stage Sales begin to drop. n People no longer want to buy the product and see it as old. n Product often replaced by a new design. n If the business is successful they will have already developed a product to replace the one going into decline. n

Marketing Mix Needs to be adapted at each stage in the lifecycle n Length

Marketing Mix Needs to be adapted at each stage in the lifecycle n Length of lifecycles can vary and so this has an impact on marketing n Look at the table on page 152 to see examples of this. n Has an impact on capacity, if the product goes too quickly the business may not be able to keep up with production. n

Cash flow Development stage will see the highest expenditure due to research and development

Cash flow Development stage will see the highest expenditure due to research and development and creating prototypes n No revenue generated at this stage n During introduction and growth, money will come in but high amounts will be spent on advertising n Have to plan ahead with cash flow throughout the life of the product n

Extension strategies n Targeting a new segment of the market n Developing new uses

Extension strategies n Targeting a new segment of the market n Developing new uses for the product n Increasing usage of the product