Product Life Cycle

Question 1

How many stages of the product life cycle are there?

Answer 1

5

Question 2

Name the 5 stages of the product life cycle (in order)

Answer 2

1) Research and development
2) intro
3) growth
4) maturity
5) decline

Question 3

What is an extension strategy?

Answer 3

A method for a business to increase sales when in a saturated market.
(Ideally in maturity stage)

Question 4

Pros of extension strategies?

Answer 4

-increase sales
-and In turn increase revenue
-

Question 5

Cons of extension strategies?

Answer 5

-costs of doing the extension strategy
(Research & development)
-opportunity cost

Question 6

Types of extension strategies?

Answer 6

S: segments (target and position new segment)
P: price (reduce price to increase sales)
A: advertising (promo campaign)
M: markets (enter international markets)

Question 7

Types of extension strategies?

Answer 7

S: segments (target and position new segment)
P: price (reduce price to increase sales)
A: advertising (promo campaign)
M: markets (enter international markets)