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Product life cycle

By: Brian Smith Jon Xu Nick Gland Maddie Mansi

Students will know


What a product life cycle is What the BCG Matrix is The 4 stages of a product life cycle How the BCG matrix works How the Product life cycle graph works How the life cycle effects the BCG Matrix

Product life cycle


Definition- Identifies the stages a product goes through from the time it enters the market until it is no longer sold Products go through four stages in their life cycle. By studying the competition a business can determine the type of marketing mix needed in each stage of the product life cycle

Product life cycle stages


Introduction: New product introduced to market. Usually has no direct competition and competes with older more established products

Growth: If a new product is introduced successfully, then it will attract more customers and sales will begin to grow. Competitors will see that the product offers profit and try to enter the market with their own brand

Product life cycle continued


Maturity: Growth of sales begins to decline. Competitors may have come out with similar products. At this point, a company wants to defend their market share. Decline: This is when product sales begins to decline. Your product is probably outdated or not innovative by now. Instead of losing more money, firms may withdrawal that product or reduce costs.

The Lifecycle

The BCG Matrix

How to read a BCG Matrix graph


The Dog stands for a low growth and a low market share, because of this it has a low profit with high investment Question mark means High growth and low market share, It has low profits but needs high investments.

How to read a BCG Matrix graph


Stars are when your business has high growth and high market share. The cow means that there is a low growth and a high market share, because of this your investments should be low with high profits.

Product lifecycle & BCG Matrix relation

Theyre not directly related but they both describe lifecycles of businesses or products.

How they both apply to real life


Example of product life cycle: The Ipod 1: First introduced in 2001, was a huge market success, knock offs were soon made. 2: They made all the ipod variations with more memory and capability 3. the Ipod classic was eventually beaten out by the Ipod touch, and other touch screen items. 4: It was declined when the Iphone came out.

How they both apply to real life


Example: Apple 1: The first year apple was a business they were a dog. 2: They quickly over took the personal electronic Industry, beating out the blackberry as #1 (star)

Conclusion
Now you should know What a product life cycle is What the BCG Matrix is The 4 stages of a product life cycle How the BCG matrix works How the Product life cycle graph works How the life cycle effects the BCG Matrix

Activity

Find a product that has gone through the product life cycle and describe the stages it went through

Activity

Name a company for each of the 4 quadrants of the BCG matrix

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