Product Life Cycle (Quick Revision)

Question 1

Define: Product Life Cycle

Answer 1

The product life cycle shows the sales of a product over its life.

Question 2

What labels are on the axis of the product life cycle diagram?

Answer 2

Time is the Y axis

Sales is the X axis

Question 3

State the stages of the product life cycle.

Answer 3

Introduction - Growth - Maturity - Decline

Question 4

If R&D helps to modify a product and keep sales growing, this is an e……………. s……………. Give two examples.

Answer 4

Extension strategy;

• Finding new uses for the product
• Finding new markets for the product.

Question 5

The B………… M………… provides an overview of the position of all the firm’s products. State the four types of products that is shows.

Answer 5

Boston Matrix;

• Dogs
• Cash cows
• Stars
• Problem children/question marks

Question 6

What is the Examiner’s note for Product Life Cycle?

Answer 6

Research and development can produce new products to compensate for the fall in sales of existing products during the decline stage of their life cycle.

Question 7

What is the Evaluation point for Product Life Cycle?

Answer 7

The product life cycle model may be of limited value. It is usually only clear afterwards what stage of the cycle a product was in before.