Product life cycle

Question 1

What is the term for when products go through the stages of a life cycle very quickly?

Answer 1

fads.

Question 2

What is the stages of the product life cycle?

Answer 2

• Research and development
• Introduction
• Growth
• Maturity
• Saturation
• Decline.

Question 3

What is research and development (R&D)?

Answer 3

The product is being researched and developed. Prototypes will be made and tested. changes may have to be made after research feedback.

Question 4

What impact on sales does R&D have?

Answer 4

There is no sales yet as the product is still being developed.

Question 5

What impact on profits does R&D have?

Answer 5

The product will actually be making a loss due to the costs of development and zero income from sales.

Question 6

What is introduction?

Answer 6

The product is launched. This usually coincides with introductory promotional activities to create ‘hype’ for the product.

Question 7

What impact on sales does introduction have?

Answer 7

Sales are slow to begin with as customers are unsure of the product. Customers may have to be persuaded to move from competitors products.