How do you extend the product life cycle?

How do you extend the product life cycle?

Extension strategies:

1. Change product– New and improved versions of the product can be released…
2. Change price– Price can be lowered to allow new customers to buy it.
3. Change place– Products can be sold in different countries or territories to gain more sales.

What is product life cycle meaning?

A product life cycle is the length of time from a product first being introduced to consumers until it is removed from the market. A product’s life cycle is usually broken down into four stages; introduction, growth, maturity, and decline.

What are 4 possible extension strategies?

Extension strategies include rebranding, price discounting and seeking new markets. Rebranding is the creation of a new look and feel for an established product in order to differentiate the product from its competitors.

What are examples of extension strategies?

What is an example of an extension strategy?

For example, a business could try introducing a different sized version of the product. Increasing marketing activity – Running new advertising campaigns and sales promotions can attract new customers, remind previous customers that the product still exists and encourage existing customers to buy more of the product.

How are extension strategies used in the life cycle?

Firms may use extension strategies to increase product life cycle. An extension strategy is a practice used to increase the market share for a given product or service and thus keep it in the maturity stage of the life cycle rather than going into decline.

How does the life cycle of a product work?

Some products, like Kellogg’s Corn Flakes, have retained their market position for a long time. Others may have their success undermined by falling market share or by competitors. The product life cycleshows how sales of a product change over time. The five typical stages of the life cycle are shown on a graph.

How to extend the life of a product?

Extension strategies Developing new products is expensive and takes time, so businesses will usually try to extend the life cycle of a product and prevent it from going into decline. To do this, they need to find ways of keeping people interested in the product for longer, thereby increasing the number of sales.

Which is the terminal stage of the product life cycle?

Decline Stage: The decline stage of the product life cycle is the terminal stage where sales drop and production is ultimately halted. Profitability will fall, eventually to the point where it is no longer profitable to produce, and production will stop.