1.50 Product Life Cycle

Question 1

Explain the introduction stage of the products life cycle.

Answer 1

Introduction- a product is introduced to the market for the first time. Marketing costs are high, sales are low, and demand has to be created.

Question 2

Explain the growth stage of the product life cycle.

Answer 2

Growth- the product is beginning to be recognised and is becoming more recognised. Costs are reduced, sales increase significantly, more profit.

Question 3

Explain the maturity stage of the product life cycle.

Answer 3

Maturity- the product has peaked in terms of costs, profits and sales. Production increases as costs are lowered, price drops due to more competition but profits are still high.

Question 4

Explain the decline stage of the product life cycle.

Answer 4

Decline- the product is beginning to die out due to more innovative products starting to replace it. No marketing, sales decrease, profit diminishes and remaining stock sold off.

Question 5

Explain the product life cycle of a fashion product.

Answer 5

A fashion product usually lasts for a shorter period of time than a basic product. When fashion products have reached maturity, their decline is normally quite rapid.

Question 6

Explain the product life cycle of a basic product.

Answer 6

A basic product offers the longest product life cycle. There is substantial need and not generally decline unless There is a major product in a viation to replace the need for the product.

Question 7

Explain the product life cycle of a fad product.

Answer 7

Offers the shortest life cycle, experience rapid growth followed by a very steep decline in sales.