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Product life cycle

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Introduction

Application Of The Marketing Mix 2. Product The product life cycle is the way products change over the years in order to maintain their place in the market. The product life cycle shows the path of a product from the very beginning right through to its withdrawal of the market. The six stages of the product life cycle are: 1. Research and Development 2. Introduction/Launch 3. Growth 4. Maturity 5. Saturation 6. Decline For our ice cream business we will first need to research our product and find out how we could make our product better and be more appealing to potential customers. Research and Development involves carrying out all necessary market research on the product and the product would also be tested. ...read more.

Middle

The product would not be in a profit-making position at this stage because sales would not yet cover the cost of the research and development stage as yet. Growth is the third stage in the product life cycle. Sales grow rapidly at this stage, as people are aware of the product and a lot of people would have tried it and customers will start to become loyal to the product. Sometimes the price may be reduced at this stage to try and surpass competitors. The increased sales will put the product into a profit-making position and cover the costs for the earlier research and development stage. In the case of our ice cream business our customers will be aware of our product because of our advertisements and are posters around the school. ...read more.

Conclusion

Profits at this stage may still be good at this stage but not be growing. If our ice cream business was at this stage we may have to get ready for our products drop out of the market and try to sell the remaining goods. The final stage of the cycle is the Decline. This is the final stage for the product and sales have fallen so that the business is not making enough money to cover the manufacturing costs therefore the business is unprofitable. At this stage the product would be withdrawn from the market. Businesses that have prepared for this stage will have a second product ready for introduction into the market after the first one is withdrawn. If our ice cream was in this stage we would be looking to introduce a new flavour of ice cream into the market or even a new product of ice cream altogether. ...read more.

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