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Life Cycle of a Product

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life cycle of a product

introduction

At this stage, the product is designed, manufactured and brought into the market. The product’s initial sales will be slow until the company builds an awareness of the product to potential customers, and this is when the introduction stage closes.

In an example of a book, the introduction stage will involve creating, editing and publishing the book, and printing the books initial orders to be sent to book shops.

growth

At this stage, after completing the introduction phase, the product will begin to come into its own in the market scene. This is the peak time for profit to be made, because as the demand increases, the production increases which therefore leads to lower cost per unit. Advertising campaigns are usually introduced around this time, attracting new and/or wider target markets. Every company wants this stage of a product’s life as long as possible.

In the example of a book, this is the stage where news has spread about the novel, and copies are beginning to sell at an increasingly fast pace. The book at this point may win awards or be reviewed which should spark interest further.

maturity

At the maturity stage, sales growth has reached its peak and started to slow and is approaching the point where the inevitable decline will begin. Competitors may begin to have the advantage forcing the company to lower prices, decreasing overall profit. The company also has to continually spend more on advertising to keep the product selling. It becomes evident at this point that sales aren’t going to increase anymore so the company begins to invest less money into the product in hope of inventing another This is usually the longest stage of a product’s life.

In the example of the book, the novel may have now received all of the press attention it is going to get, and has lowered the production rate as the demand is not increasing. Perhaps another author has just released a book with a similar story or a more effective advertising campaign, and the book declines from bestseller standards. Adversely, the author may have brought out another book, diverting the attention away from this one to the newer product.

decline

At this stage, the product begins its downward slide in sales until the company decide that it is neither economically feasible nor beneficial to continue the product’s manufacture, so the product is either discontinued or sold to another company

In the example of a book, the cost per unit is too high to continue the reproduction of the product so the pblishing company decide to either sell on the book to another company or just discontinue publishing, and choose t focus on a new product.

ella nokes

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