The Product Life Cycle Voiced

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The Product Life Cycle:

The Product Life Cycle


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 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 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 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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