LifecycleLifecycle

Product lifecycleProduct lifecycle

Development stageDevelopment stage

Lots of market research carried outLots of market research carried out Research and developmentResearch and development Prototypes madePrototypes made Period of high costsPeriod of high costs

Introduction stageIntroduction stage

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

Market research will have been Market research will have been done.done.

Lots of advertising takes places at Lots of advertising takes places at this time to raise peoples awareness this time to raise peoples awareness of the product.of the product.

Growth StageGrowth Stage

Sales show their most rapid rise in Sales show their most rapid rise in this stage.this stage.

People become more aware of the People become more aware of the products existence.products existence.

Product is in high demand.Product is in high demand.

Maturity StageMaturity Stage

Sales are towards their highest.Sales are towards their highest. Rate of growth slows down.Rate of growth slows down. Advertising is needed to hear to Advertising is needed to hear to

keep the product in peoples minds keep the product in peoples minds and therefore competitive. and therefore competitive.

Saturation StageSaturation Stage

Growth stops at this stage.Growth stops at this stage. The sales are high but not getting The sales are high but not getting

larger.larger. Decisions have to be made about Decisions have to be made about

what to do with the product:what to do with the product: Extend the life of the product by Extend the life of the product by

advertising or differentiationadvertising or differentiation Let the product go into decline.Let the product go into decline.

Decline StageDecline Stage

Sales begin to drop.Sales begin to drop. People no longer want to buy the People no longer want to buy the

product and see it as old.product and see it as old. Product often replaced by a new Product often replaced by a new

design.design. If the business is successful they will If the business is successful they will

have already developed a product to have already developed a product to replace the one going into decline.replace the one going into decline.

Marketing MixMarketing Mix

Needs to be adapted at each stage in Needs to be adapted at each stage in the lifecyclethe lifecycle

Length of lifecycles can vary and so Length of lifecycles can vary and so this has an impact on marketingthis has an impact on marketing

Look at the table on page 152 to see Look at the table on page 152 to see examples of this.examples of this.

Has an impact on capacity, if the Has an impact on capacity, if the product goes too quickly the business product goes too quickly the business may not be able to keep up with may not be able to keep up with production.production.

Cash flowCash flow

Development stage will see the highest Development stage will see the highest expenditure due to research and expenditure due to research and development and creating prototypesdevelopment and creating prototypes

No revenue generated at this stageNo revenue generated at this stage During introduction and growth, During introduction and growth,

money will come in but high amounts money will come in but high amounts will be spent on advertisingwill be spent on advertising

Have to plan ahead with cash flow Have to plan ahead with cash flow throughout the life of the productthroughout the life of the product

Extension strategiesExtension strategies

Targeting a new segment of the Targeting a new segment of the market market

Developing new uses for the productDeveloping new uses for the product

Increasing usage of the productIncreasing usage of the product