A LEVEL PRODUCT DESIGN - PRODUCT LIFE CYCLE

Question	Answer
How long a products life cycle lasts depends on...	- Changes in materials and technology. - Changes in consumer demand. - Sales. - What the product is. - How technically complex the product is.
Introduction and Launch	The product has newly been released onto the market, sales can be slow as consumers may not recognise the benefits of the new product. At this stage costs will be high and profits low.
Growth	As advertising takes effect and consumers see the benefits of the new technology, sales start to rise, there is a steady increase in profits. Competitors may introduce their own branded version of the product.
Maturity	Sales begin to level off, the market becomes saturated with competitor designs. Major companies have already designed new products ready for launch.
Decline	The market is completely saturated and sales start to drop off. Companies must decide whether to launch a new product or accept declining profits.
Planned Obsolescence	Some companies deliberately keep the lives of their products short, they produce new or improved products at short intervals, before the current product has reached maturity or decline. Advertising campaigns are based on having the 'latest version' of a product. Some products must have built in obsolescence for safety or hygiene reasons, and also to keep the costs at an affordable level.

Resource summary

	Created by charlotte-clayto over 10 years ago