Chapter 5: PLC Flashcards
What is the product life cycle
a marketing concept that describes the behavior of a product’s sales over time.
What are the 4 stages of the PLC
Introduction
Growth
Maturity
Decline
Introduction phase
High or low mortality rate
High
Introduction phase
High or low unit costs
High
What is the biggest investment in the introduction phase
communication and advertising
Introduction phase
many or little benefits for the company
little
What is the main thing that happens in the growth phase
product acceptance by the market
Growth phase
Sales growth is rapid or slow
rapid
Growth phase
increase or decrease in market share
Increase
Maturity phase
Rapid or slow sales growth
Slow
Maturity phase
high or low manufacturing costs
Low
What is important to do with the price in order to continue in the market for the growth phase
Decrease the price
Decline Phase
Sales decline or incline
decline
