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level: Product Life Cycle [Revise]

Questions and Answers List

level questions: Product Life Cycle [Revise]

QuestionAnswer
What is the Product Life Cycle?-A model, that describes the Stages that a Product goes through.
What are the Uses of using the Product Life Cycle?-Can see Insight of Future Sales Trend -Helps with the Market Targeting and Positioning -Analyses and Manages the Product Portfolio -Helps to see how long the Product lasts -Businesses can use the Model, to Prolong any Stages -Not all Products will Decline; some will have Extension Strategies to gain Sales again
What are the Stages called?-Intro -Growth -Maturity -Decline [In order]
Evaluate the Intro Stage-Usually Costs High -Not many Sales -Negative Cash Flow [sometimes] -Not huge Distibution -Lots of Promotional Spending -Price Skimming OR price Penetration
Evaluate the Growth Stage-Expanding Market -More Sales -Becomes Known -Cash flow becomes Positive -Market Grows, Profits Rise, New Competitors -Wider Distribution -Advertising to continue Awareness
Evaluate the Maturity Stage-Slower Sales and Growth [Competitors enter] -High Profits for High Market Share -Cash Flow becomes greatly Positive -Weak Competitors leave -Prices and Profits fall -Advertising to still Remind the Existence -Promotion now on Product Differentiation -New Users, Target New Segments, Develop new Uses
Evaluate the Decline Stage-Falling Sales -Market Saturation -Decline in Profits and Weaker Cash flow -Even more Competitors leave -Products no longer receives Promotion -The left overs sold at a Reduced Price
Why do Some Products reach the Decline Stage-Technological Advances -Changes in the Customers Needs and Expectation -More Competitors -Can not Innovate the Product
What are Extension Strategies?-A way that Busiensses use to keep the Sales of a Product still high -Their are Different Ways
Name some Extension Strategies-Advertising; Gain a New Audience to sell to/ Remind the Current Audience its Existence -Price Reduction; Show its Low Price to attract More Customers -More Value; eg Phone, more Filters, Convenience -Try New or Different Markets; Sell in a Different Town, Region, Nation -New Packaging; Just making it appeal nicely eg Putting Crisps in Boxes