Page 170 - Cambridge IGCSE Business Studies

Cambridge IGCSE Business Studies Section 3 Marketing

Sales
Introduction Growth Maturity Decline

Figure 12.2 The stages of a
product life cycle Time

■ Maturity stage – sales are no longer growing but are not falling. This is the most
profitable stage in a product’s life cycle.
■ Decline stage – sales are falling. The product eventually becomes unprofitable and
is withdrawn from the market.

The length of each stage of a product’s life cycle varies from product to product.

The overall life cycle of different products also varies. For example, when Apple
introduces a new iPhone, it spends very little time in the introduction and growth
stages compared to less hi-tech products.
Sales
Introduction Growth Maturity Decline

168

Figure 12.3 Example of a
hi-tech product life cycle Time

Fashion clothing has a much shorter life cycle than a motor car. Fashion clothing
is introduced into the market and quickly grows and reaches maturity. It might
TOP TIP
only be in the market for a few weeks or months before it goes into decline as it is
The product life cycle does not
tell you how long a product will replaced with the ‘latest’ fashion.
last in the market, or how long it
will spend in each stage. It only Sales
Introduction Growth Maturity Decline
tells you the stages it might pass
through.

Figure 12.4 Example of a product life
cycle for fashion clothing Time

Motor cars will have a longer life cycle and will take longer to reach maturity. Th ey
will eventually be replaced by a ‘newer’ model, but this could be two to fi ve years
after its introduction to the market.