The Product Life Cycle Voiced

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The Product Life Cycle:

The Product Life Cycle

Introduction:

Introduction Costs are high. Sales grow slowly. There is little or no competition.

Introduction (Cont’d):

Introduction (Cont’d) Demand has to be created. Customers need encouraging to try product. The product rarely makes money.

Growth:

Growth Economies of scale cause cost reduction. Sales increase significantly. Product begins to make money.

Growth (Cont’d):

Growth (Cont’d) Public becomes more aware of product. C ompetitors introduce similar products. Higher competition leads to lower prices.

Maturity:

Maturity Product volume increases, costs are lowered. Sales peak and market saturation reached. Competitors continue to enter the market.

Maturity (Cont’d):

Maturity (Cont’d) Prices drop due to competing products. Brand differentiation and feature diversification emphasized. Industrial profits go down.

Decline:

Decline Costs become less than optimal. Sales go down or stabilize.

Decline (Cont’d):

Decline (Cont’d) Prices and profitability decrease. Efficiency determines profit, rather than sales.

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