MCS 1000 Chapter 11: MCS 1000 - Chapter 11
13 Apr 2017
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Document Summary
Product life cycle: the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline. The introduction stage of the product life cycle occurs when a product is first introduced to its intended target market. Growth, is characterized by rapid increases in sales. it is in this stage that competitors appear. The maturity stage, is characterized by a slowing of total industry sales or product class revenue. Also, marginal competitors begin to leave the market. The decline stage occurs when sales and profits begin to drop. Products enter this stage because of environmental changes. Deletion: the most drastic strategy for a declining product, dropping it from a company"s product line. Harvesting: occurs when a company retains the product but reduces marketing support costs. Four dimensions of the product life cycle: length of the product life cycle: there is no exact time a product takes to move through its life cycle.
