Product: The Product Life Cycle (Cambridge (CIE) IGCSE Business)
Revision Note
Written by: Danielle Maguire
Reviewed by: Steve Vorster
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 five stages in the product life cycle: development, 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 Product Life Cycle, Cash flow and Marketing Strategy
Stage | Explanation | Implication |
---|---|---|
Development |
|
|
Introduction |
|
|
Growth |
|
|
Maturity |
|
|
Decline |
|
|
Extension Strategies
Extension strategies refer to the techniques used by businesses to extend the life of a product beyond its natural life cycle
These strategies 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
A Comparison of Product and Promotion-related Extension Strategies
Extension Strategy | Explanation | Examples |
---|---|---|
Product-related |
|
|
Promotion-related |
|
|
Last updated:
You've read 0 of your 5 free revision notes this week
Sign up now. It’s free!
Did this page help you?