Product Life Cycle is the stages a product will go through in its life time; from development to decline the product faces a lot of challenges in it's time to become of high demand for the very unsettled public.
Development:the idea of the product is firstly brought up and developed; in this stage a prototype is build to give a brief understanding of what the product id going to be like.
Introduction: when the product is foremost launched into the selling market. Business' need to convince distributors to sell their products.
Growth: where the products sales will start getting faster and the product will be sold in bigger quantities because it might have good feedback from launch and the advertisement may be successful.
Maturity: Sales slow down because the product could be getting old and outdated or a competitor could have launched a better product similar to yours forcing the public to turn to the new product.
Decline: Sales fall. Business need to decide whether to make a new product, upgrade the old one, product extension strategies or take the product fully of the market.
Product Extension Strategies: These are strategies that are introduced to extended the life time of the product, and to help the product from the decline stage.
Examples of these are: > Attempting to find new customers
> Encouraging people to buy the product more frequently.
> Increased funding for advertisement
> Cut price for product - better value for money.
Product extension strageties are important because it helps the product life cycle go on for longer, helping the business whom founded the product earn more money rom the product and in some cases - help the company not to go bust.
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