Theme 1 - Product Life Cycle

Question 1

What is the product life cycle?

Answer 1

The product life cycle is the process a product goes through from its launch to its decline, typically including five stages: research and development, introduction, growth, maturity, and decline.

Question 2

Research and development

Answer 2

The period of time where the product is being invented and the market research is being carried

Question 3

Introduction

Answer 3

It’s formative weeks or months on the market.
This phase can be short for some products which have been marketed well and consumers become quickly aware of it
For some products, the introduction phase can be more lengthy

Question 4

Growth

Answer 4

This is where the product starts to take off in terms of its sales

Question 5

Maturity

Answer 5

The maturity phase in the product life cycle is when sales growth slows down after reaching peak market penetration. At this stage, the product is well-established, competition is high, and companies often focus on differentiating their product, maintaining market share, and managing costs.

Question 6

Decline

Answer 6

Where sales are declining. The business may decide to let the sales of that product gradually decline or they may try to boost sales back up again.

Question 7

Extension strategies

Answer 7

A tactic that boosts the declining sales of a product back up again eg a change in prices or new promotion campaigns.