product life cycle

forces sales trends

market targeting and positioning

analyse and manage a product portfolio

focus investment in products

%%development%% - new product, can be complex, needs significant resources, may not be successful
%%intro%% - new product is then launched, low sales, low capacity utilisation and high unit costs, heavy promotion needed to make customers aware, neg cash flow . strategies= aim Is to encourage customer adoption, high promotional; spending to create awareness, skimming or penetration pricing
%%growth%% - faster growing sales, product gains market acceptance, unit costs will fall wit economies of scale. attracts the entry of new comp, cash flow can be positive strategies= promote brand awareness, market penetration, wider target customer base, improve product- new features
%%maturity%% - slower sales as rivals enter market; fighting for market share, low unit costs- efficient, high profit for those with high market share, weak cop leaves market, price starts to fall as comp becomes intense, cash flow its positive; less need for investment and marketing. strategies = manage capacity and production, promotes differentiation, adopt extension strategies
%%decline%% - falling sales, market saturation, fall in profit and cash flow, more comp leaves market
reasons why products enter the decline stage; tech advance, changes in customer taste and behaviour, increased comp, failure to develop the product
strategies= maintain market share if what’s left, minimise marketing spend, cut prices to stay competitive

==extension strategies;== prevents a decline in sales. they can target new segment of market, develop new use of market, increase usage of product

==new product development NPD;== turning new ideas into products, involves research and development