3.1 The product life cycle

During this stage, a business will research and devlop the product. Product testing and trials takes place.

• Development

• Introduction

• Growth

• Maturity

• Decline

During this stage, the product is launched. Usually a loss is made during this phase as Sales are low (but increasing)

• Development

• Introduction

• Growth

• Maturity

• Decline

During this stage, products sales increase profits start to be made. A business may need to increase outlets to reach new markets.

• Development

• Introduction

• Growth

• Maturity

• Decline

During this stage, sales rate starts to slow, perhaps a competitor has launched something similar or customers just want something new.

• Development

• Introduction

• Growth

• Maturity

• Decline

During this stage, sales start to fall. Extension strategies needed to pick up sales again.

• Development

• Introduction

• Growth

• Maturity

• Decline

Actions a business can take to extend the life of a product and increase sales.

• Extension strategies

• Introduction

• Growth

• Maturity

• Decline

Which stage has rapid sales?

• introduction

• maturity

• decline

• growth

Which stage has lots of competitors?

• growth

• maturity

• introduction

• decline

Which stage has the least production costs?

• introduction

• maturity

• decline

• growth

What should a business do in the intro stage?

• make lots of their product

• build up sales

• increase staff numbers

• increase customer awareness