Product Lifecycle
Introduction:
•As a new product much time will be spent by the organisation to create awareness of its presence amongst its target market. Profits are negative or low because of this reason.
Growth:
•If consumers
clearly feel that this product will benefit them in some way and they accept it, the organisation will see a period
of rapid sales
growth.
Maturity
•Rapid sales
growth cannot last forever. Sales slow down as the product sales reach peak as it has been accepted by most buyers.
Decline.
•Sales and
profits start to decline, the organisation may try to change their pricing strategy to stimulate growth, however the product will either have to be re-modified,
or replaced within the
market.
