Review the steps in the Product Life Cycle (pp. 97 - 98). Select a product, and then describe the stages of the product life cycle and strategies in each stage. Prepare a 300- word written assignment that "walks through" each cycle involved.

Products generally go through a life cycle with predictable sales and profits.

Marketers use the product life cycle to follow this progression and identify strategies to influence it. The product life cycle (PLC) starts with the product’s development and introduction, then moves toward withdrawal or eventual

demise. This progression is shown in the graph, below.

The five stages of the PLC are:

1. Product development

2. Market introduction

3. Growth

4. Maturity

5. Decline

General Characteristics:

1)Product Development

- investment is made

- sales have not begun

- new product ideas are generated, operationalized, and tested.

2)Market Introduction

- costs are very high

- slow sales volumes to start

- little or no competition

- demand has to be created

- customers have to be prompted to try the product

- makes little money at this stage

3)Growth

- costs reduced due to economies of scale

- sales volume increases significantly

- profitability begins to rise

- public awareness increases

- competition begins to increase with a few new players in establishing

market

- increased competition leads to price decreases

4)Maturity

- costs reduced due to economies of scale

- sales volume increases significantly

- profitability begins to rise

- public awareness increases

- competition begins to increase with a few new players in establishing

  market

- increased competition leads to price decreases

5)Decline

- costs increase due to some loss of economies of scale

- sales volume declines

- prices and profitability diminish

- profit becomes more a challenge of production/distribution efficiency than

increased sales.