Lifecycle Product lifecycle Development stage Lots of market

Lifecycle

Product lifecycle

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. 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 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 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 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 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 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 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 for the product n Increasing usage of the product