Product Life Cycle

Question 1

List the 4 stages in the product life cycle

Answer 1

1. Introduction
2. Growth
3. Maturity
4. Decline

Question 2

Explain introduction

Answer 2

Product is first introduced in the marketplace
Focus is on promoting consumer awareness and getting consumers to try the product
A major task is the distribution of the product; trying to convince retailers to carry your new product
Ex. Gatorade

Question 3

Explain growth

Answer 3

More competitors enter the marketplace
Product may be improved by adding new features or new products in that line
Important to add distribution outlets

Question 4

Explain maturity

Answer 4

Sales begin to slow down
Repeat customers may stop buying
Changes may be made to the product to distinguish it from its competitors
Focus can be on identifying new buyers

Question 5

Explain decline

Answer 5

Sales and profit begin to drop
Technological advances can cause entire product categories to enter the decline stage
Product may be dropped from the product line or kept to satisfy requests from loyal customers

Question 6

List the 3 methods to manage the product life cycle

Answer 6

Modifying the product
Marketing the product
Repositioning the product

Question 7

Explain modifying the product

Answer 7

Product features, appearance, design, quality

Question 8

Explain marketing the product

Answer 8

Target new markets

Question 9

Explain repositioning the product

Answer 9

Change in any one of the 4 Ps