product life cycle Flashcards
What are the stages of the product life cycle?
- Development
- Introduction
- Growth
- Maturity
- Decline
What is the focus of the development stage in the product life cycle?
Heavy investment in research and product development
During which stage of the product life cycle do costs remain high due to advertising?
Introduction
In the growth stage, how does revenue change?
Revenue is increasing rapidly as sales grow quickly
What happens to costs during the maturity stage if no changes are made to the product?
Costs decrease as marketing declines
What typically occurs during the decline stage of the product life cycle?
Sales fall and competition is high
Fill in the blank: In the development stage, costs are ______ because lots of money is being spent on research.
HIGH
Fill in the blank: In the introduction stage, revenue is ______ but starting to grow slowly.
LOW
Fill in the blank: In the growth stage, costs are ______ but starting to decrease.
HIGH
Fill in the blank: In the maturity stage, revenue is ______ but the market may be saturated.
HIGH
Which company is mentioned as an example of a product in the decline stage?
Video tapes
True or False: The target market for a product can change over the years.
True
What is a potential outcome if no extension strategies are used during the decline stage?
The product/service may be withdrawn from sale
What is the importance of the product life cycle graph?
Shows how sales, costs, and profits change over time
