the product life cycle |
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Just like with the lifespan of a person, products also have a life cycle. And just like a person, some products 'live' longer and are more successful than others.
The product life cycle is a description of the life of a product, from its launch to its final withdrawal from the market. Using this analysis will help a business decide whether it is worth investing further in a product.
Just like with the lifespan of a person, products also have a life cycle. And just like a person, some products 'live' longer and are more successful than others.
The product life cycle is a description of the life of a product, from its launch to its final withdrawal from the market. Using this analysis will help a business decide whether it is worth investing further in a product.
Extension strategies are attempts to maintain the sales of a product and prevent it reaching the decline stage of the PLC.
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If possible, a business will want to stop sales falling and avoid the decline stage through use of extension strategies such as limited editions, vouchers or coupons, special offers such as BOGOF, or even discount prices. The benefit to a business of having a portfolio of products at different stages of the PLC is that profits from older products can be used to fun the early stages of the life of new products, thus enabling a businesses to always have products to sell generating revenue and hopefully profits. |
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Task 3
For this task you have two options, complete either activity A or B detailed below.
For this task you have two options, complete either activity A or B detailed below.