Product Life Cycle

Product life cycle

Before a product goes for production after it final developmental stage there are a few things the marketing team have to consider. There are things like when will they reach their break even point and how many units do they have to sell to achieve this.

A typical product life cycle would be:

Introductory stage – Growth stage – maturity or saturation stage – Decline stage

Introduction stage – Although this is the first stage in the product life cycle they maybe others added on in unique instances. This could be because a product is only release in a certain area for testing. Generally at this stage the product is new to the market unless it is a remarketed product. Sale are generally low as it is just being introduce and advertising will not have come in to full affect at this current time. The company’s expenditure at this moment in time is often high then there profit due to advertising and promoting their product.    

 

Growth stage – At this stage the advertising and promoting the product will be coming in to effect with sale starting to rise rapidly. This is when a company should reach there break even point and start to earn a profit.

Mature stage – This is when sale start to slow down as by this time most of there intend target audience will have bought the product. A company can loose out here as by this time other companies will have see this product and start making similar style products. An example of this is Sony Playstation with rivals Microsoft creating the Xbox.

Decline stage – This is often when the product is put on sale to get rid of the remaining few, so profits will not be as great as when first started. This is generally were competitors have takes the market with there better version of you product, or the technologies have changed an customers demand high spec produce. The product is sold until it can not make anymore profit then it is discontinued.

Advertisements
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: