Summary
Summary Product Life Cycle and Boston Matrix
- Institution
- PEARSON (PEARSON)
Provided in-depth information on Boston Matrix and Product Life Cycle, as well as evaluations of both strategies.
[Show more]
Seller
Follow
Content preview
Boston Matrix and Product Life Cycle ResearchProduct Life Cycle
Definition:
A theoretical model which describes/predicts the stages a product goes
through during its life.
Stages:
There are 5 stages in the product life cycle.
Development Introduction Growth Maturity Decline
Sales 0 Low Increasing Slow growth Falling
Price No price Different Depends on May have to Discount
pricing demand. reduce prices sales to
approaches- to remain maintain
Price Might choose competitive sales and get
skimming, to go with and survive rid of old
penetration competitive among other products
pricing, etc. pricing if in a competitors.
mass market
to remain
more
competitive
Cashflow Negative Negative Positive Positive Negative
Use of Product Life Cyle:
● Forecast sale trends
● Market targeting and positioning
, ● Analyse and manage a product portfolio
● Focus investments in products
Marketing Strategies:
Stage of Life Cycle Marketing Strategy
Development ● Market research to understand customer
needs and preferences
● Creating awareness through promotional
activities
● No pricing method set at this time
Introduction ● A lot of promotion to raise awareness:
advertising
● Limit distributions until customer reactions
gotten and fully understood
● Either price penetration or price skimming
depending on the type of product it is
● Encourage customer adoption
Growth ● Build loyalty
● Increase distribution channels to push the
product out to the market further
● Depending on demand and PED of product
● New features, improved styling
● Create more options(variety)
Maturity ● Might want to emphasise the USP and
differentiation of product/service
● Manage capacity and productions
● Adopt extension strategies
● Intensive distribution
Decline ● Maintain market share of what is left
● Cut prices to remain competitive
● Minimise marketing spend
Examples of products that PLC can be used for
● Smartphones
● Laptops
● Clothes
Below is an example of the product life cycle. The product life cycle of an
apple ipod is shown.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller damilolaadekeye09. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73918 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now