Financing and Marketing Management

Unit 16 - New Product Development Process

16.2. Managing Product Life Cycle
Stages in Product Life Cycle : Introduction • Growth • Maturity • Decline
Introduction

• Price: High
• Quality: Low
• Number of versions: Few
• Number of competitors: Few
• Intensity of Competition: Little
• Advertising: High to introduce
• Distribution: Little

Growth

• Price: High and dropping
• Quality: Low and growing
• Number of versions: Few and increasing
• Number of competitors: Few and growing
• Intensity of Competition: Growing
• Advertising: Still high to expand
• Distribution: Growing

Maturity

• Price: Dropping and stabilizing
• Quality: High
• Number of versions: Many
• Number of competitors: Many/dropping
• Intensity of Competition: High
• Advertising: Stable
• Distribution: Maximum

Decline

• Price: Dropping
• Quality: High
• Number of versions: Dropping
• Number of competitors: Dropping
• Intensity of Competition: Depends
• Advertising: Dropping
• Distribution: Losing