Product life cycle

Question 1

What is the product life cycle?

Answer 1

It is is part of product in the marketing mix (4p’s) and shows the life of a product from when it is first introduced to when it is taken off the market (considers the sales of a product over time)

Question 2

What is the first stage and what happens in it?

Answer 2

Development- This is before the product is released, The product is being researched and tested, Zero sales and zero profit

Question 3

What is the second stage and what happens in it?

Answer 3

Introduction- The product is newly available, sales grow slowly, profit is low or negative

Question 4

What is the third stage and what happens in it?

Answer 4

Growth- The product becomes more established, sales grow rapidly, profit starts to increase

Question 5

What is the fourth stage and what happens in it?

Answer 5

Maturity- Product lines may be extended, sales will increase and then stabilise

Question 6

What is the final stage and what happens in it?

Answer 6

Decline- New/better products come on to the market, sales start to fall, the product stops making high profits

Question 7

How many stages are there of product life cycle?

Answer 7

5

Question 8

What are product extension strategies?

Answer 8

Advertising; price reduction; adding value; new packaging; explore new markets