Product Life Cycle

4 Stages Introduction Growth Maturity Decline

Introduction Product is brand new No other products like it High Advertising costs High production costs

Introduction Must set price high to accommodate costs Must be low enough that consumers will buy Most products never make it out of this stage

Growth Product has survived introduction Consumers buy and like product Competitors join market Advertising costs drop some

Growth Production costs drop some Price must compete with others

Maturity Product is well known and widely used Other competitors offering same/similar product Price totally based on competition Advertising/production costs----steady

Decline Product isn’t as popular People don’t buy it much anymore Choices: Find new uses for product Improve product Cut price in order to sell