Product Life Cycle 1
What is Product Life Cycle?
The cycle/evolution of the sales of an item during the time it remains on the market, stages that a product goes through during its existence
Why does a company need to know the Product Life Cycle stages of its products?
To adapt its marketing strategies, a factor in deciding when it is appropriate to increase advertising, reduce prices, expand to new markets, or redesign packaging , etc.
TRUE OR FALSE. In the Decline phase, sales and profits decrease
TRUE
How many stages does the PLC have?
5
In which stage is competition the highest?
Maturity
TRUE OR FALSE. Introduction phase could be the most expensive for a company due to market size
TRUE.
Name the PLC stages and explain at least two
Development, Introduction, Growth, Maturity, Decline
An established product which is bringing in revenue belongs to which phase in the PLC?
Maturity
TRUE OR FALSE. Most of the products we use are in the Growth phase
FALSE. Maturity
At what stage in the PLC do most products fail? Why?
Introduction stage. Launching a product for which there is no market, issues with timing and manufacturing as well as poor research are just some reasons that product launches fail.
In which stage would a business have large market share?
Growth
TRUE OR FALSE. In the Growth stage, revenue decreases as the product gains popularity
FALSE. Revenue increases
What stage in the PLC should Netflix be in?
A. Introduction
B. Maturity
C. Growth
D. Decline
B. Maturity
Example of market saturation. New streaming services are in the introduction and growth stages meanwhile Netflix´s market has reached its saturation point. Maturity is the peak of competition for a product.
Mention 4 of the 6 benefits we mentioned of the Life Price Cycling
Improved marketing strategies, Enhanced customer loyalty, Increased profits, A more reputable brand, Reliable sales forecasting, Improved decision-making
TRUE OR FALSE. The Growth stage encourages niche markets. Niche market= segments of large markets defined by its own preferences and needs
FALSE. Decline