Product Life Cycle

Question 1

What are the characteristics of introduction

Answer 1

1. Marketing costs are extremely high to create consumer awareness
2. Sales are slow
3. Few to no competitors in the market
4. Little profit at this stage

Question 2

What are the main characterisitcs during GROWTH

Answer 2

1. Costs are reduced due to economies of scale
2. Product sales increase significantly
3. Marketing costs reduced due to awareness of the product

Question 3

What are the main characteristics with MATURITY

Answer 3

1. Production volumes increase and in effect costs are lowered
2. Product sales peak and market saturation is reached
3. More competitors enter the market
4. Prices drop due to a boost of competitors in the market

Question 4

What are the characteristics associated with DECLINE

Answer 4

1. No marketing as the phase is in decline
2. Profit margin deminishes
3. Remaining stock sold off

Question 5

Why would a product be redisgned

Answer 5

Due to product testing
Relaunch of a profit
Identification of problems with existing product