29) Product Life-Cycle

Question 1

What are the four stages of the product life-cycle?

Answer 1

Introduction

Growth

Maturity

Decline

Question 2

Describe the introduction part of the product life-cycle

Answer 2

This is when the product is first launched on the markets

Cost of advertising and promoting the product will be high

There will be few competitors allowing the product to be sold at a high price

Question 3

Describe the growth part of the product life-cycle

Answer 3

Sales increase steadily

Competitors might launch their own versions of the product and pose a threat to the business

Question 4

Describe the maturity part of the product life-cycle

Answer 4

The product becomes commonplace in the market and growth of sale starts to slow as competition increases

Prices decrease

Question 5

Describe the decline part of the product life-cycle

Answer 5

Consumer tastes change

More advanced products are launched

sales fall and eventually the product is withdrawn from the market

Question 6

How to extend the length of the product life-cycle

Answer 6

Constant brand promotion

Loyal customers

No close rivals

High status and good reputation

Question 7

What does the marketing Department do before a new product is launched?

Answer 7

Market research

Consider finance and resources

Develop a prototype

Test the product

Promote and advertise after launch