product_life_cycle - Study Is My Buddy 2014
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Transcript product_life_cycle - Study Is My Buddy 2014
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Product Life Cycle
Stage 6 Business Studies
Marketing
Ms Giveen 2010
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4 Stages
Introduction,
Growth
Maturity
Decline.
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Introduction
Until people get to know the product, sales will grow slowly.
Heavy promotion and the costs of development often mean
negative profits.
Higher prices can be charged until competitors enter the
market.
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Growth
The heavy promotion pays off and sales grow rapidly.
It is very profitable because prices are high.
The profits attract competitors.
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Maturity
Sales level off.
Only occasional advertising is needed to promote the
product.
A typical example is a product such as Weet-Bix.
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Decline
Sales are falling and there is little purpose in fighting the
trend.
Heavy discounting is used to get rid of stock.
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How does this apply to your
assignment?
1.
Decide if you want to stay in the same business. Do you
want to keep family portraits?
2.
If yes – then decide how to refresh and move back a stage
3.
If no – then decide what entry point you are going to come
into the market on