Product life cycle – marketing

Product life cycle
Describes the stages a new product goes through from beginning to end
• intro -> growth -> maturity -> decline -> end
Introduction (product launch)
• early adopters buy
• the most expensive phase
Growth
• other consumers buy
• when product is visible/accessible
• viral marketing is used
• most crucial stage, determines the products successfulness
Maturity
• Sales increase more slowly
• marketers keep their product looking essential
Decline
• when sales is are at their slowest
• where businesses can choose between introducing new features/ products to increase sales and attract more consumers, and ending the product
End
• When product is no longer accessible/desired by consumers
push factors
Marketers focus on one product placement
pull factors
Create advertisements, may use samples/ coupons etc
Bust
When a product is removed from the market before it has recovered from the costs
Viral marketing
“Word of mouth” – verbal advertisement