Product: The Product Life Cycle (OCR GCSE Business)
Revision Note
Written by: Lisa Eades
Reviewed by: Steve Vorster
Stages of the Product Life Cycle
The product life cycle describes the different stages a product goes through, from its conception to its eventual decline in sales
There are typically four stages in the product life cycle
Introduction, growth, maturity, and decline
Diagram: the product life cycle
The implications for cash flow and marketing vary at each stage of the product life cycle
Companies should tailor their marketing strategies and manage their cash flow to ensure long-term profitability and success
The Stages of the Product Life Cycle
Stage | Explanation | Implications for the Marketing Mix |
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Introduction |
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Growth |
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Maturity |
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Decline |
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Extension Strategies
Extension strategies refer to the techniques used by businesses to extend the life of a product beyond its natural life cycle
They are designed to boost sales and maintain profitability for a product that has reached the late maturity or decline stage of its life cycle
There are two types of extension strategies, which are often implemented at the same time
Product-related extension strategies
Promotion-related extension strategies
Comparison of Product and Promotion-related Extension Strategies
Extension Strategy | Explanation | Examples |
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Product-related |
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Promotion-related |
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Examiner Tips and Tricks
In the exam, you could be asked to identify the stage of the life cycle at which a product is situated. Look for evidence about the speed at which sales are increasing.
Growing slowly = introduction or maturity
Growing rapidly = growth
Levelling out = maturity
Falling = decline
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