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