Product Life Cycle
L1 Definition
A Product Life Cycle is the prediction of sales of a product over time.
L3 Uses of Product Life Cycle
-Can help a firm with cash flow planning and promotion planning.
-Can help firms to see if their marketing objectives are achievable.
-Helps identify products possibly going into decline.
-PLAN EXTENSION STRATEGIES. -Link with the Boston Matrix.
L4 Limitations of Product Life Cycle
-Not all products have the same product life cycle due to changes in trends. (Consider fads and flops)
Conclusion
It is necessary for firms to monitor plan their sales to ensure they don’t overspend / lose profits but they need to consider that sales will not always go through all the different stages of the PLC. It is a good visual tool but does not guarantee success.