Please enable JavaScript.
Coggle requires JavaScript to display documents.
Product life cycle - Coggle Diagram
Product life cycle
-
-
Introduction Stage
The introduction phase will involve high costs in research and development and the product may have been test marketed before launching, so profits may be negative
Sales will be low as customers may not yet be aware of the products
Advertising will be informative to let customers know that the product has been launched
Growth Stage
Growth phase products are enjoying rapid growth in sales and profits
At this stage the customers are aware of the product and demand is high
A business may advertise the product to take advantage of the high demand
Maturity Stage
Maturity phase products face intense competition now all the producers have joined the market
Market is starting to be saturated – everyone has bought the product who is likely to buy
Sales are high but profits are starting to fall
Products have to be discounted to keep sales high – so prices may be lowered or the product may be put on sale
Decline Stage
Decline phase products may be limited in production
At this stage profits and sales have fallen and the product may be withdrawn from sale
The business may decide to heavily discount to get any last sales before the product becomes obsolete
There is a trend towards more disposable items rather than products that can be fixed or repair – they are simply replaced with new ones, therefore repairable goods are in decline phase
Like humans - products go through a life cycle
From research and development at the start to launch (birth) and through to decline (death)
Some products take longer than others to go through the life cycle
The marketing mix will change depending on the stage of the life cycle the product is at
