Product Lifecycle

Question 1

Introduction stage

Answer 1

1. New on market and sales are slow
2. Costs incurred when product is launched
3. Length of stage varies according to product

Question 2

Growth stage

Answer 2

1. Product established, consumer aware, sales grow
2. Product becomes profitable
3. New product, rapid growth

Question 3

Maturity stage

Answer 3

1. Growth in sales will level off
2. Stable market share
3. Sales peaked, competitors renter to take profits

Question 4

Saturation

Answer 4

1. To much better competition mean they are forced out of the market

Question 5

Decline

Answer 5

1. Sales eventually decline

2. Due to changing consumer tastes, new technology or intro of new products

Question 6

Development stage

Answer 6

1. Ideas must be investigated developed and tested
2. Prototype or model may be produced
3. Business spends to develops products
4. No sales - initially making a loss