Product life-cycle

• What is the product life cycle model primarily used for?

  Marketing and business strategy
• The product life cycle model forecasts the likely path of product sales
• The product life cycle can be applied to a broad category of products or a specific brand.
• Arrange the stages of the product life cycle in their correct order.

  1️⃣ Development

  2️⃣ Introduction

  3️⃣ Growth

  4️⃣ Maturity

  5️⃣ Decline
• In which stage of the product life cycle are there no sales?

  Development
• Sales grow slowly in the introduction phase.
• What characterizes the growth phase of the product life cycle?

  Steep increase in sales
• Sales growth slows during the maturity phase, but sales may still be increasing.
• In the decline phase, sales start to decline often quite sharply.
• Which product is used as an example of the classic product life cycle curve in the study material?

  Apple iPod
• What is the main focus of the development stage in the product life cycle?

  New product development
• The duration of the development stage depends on the nature of the product.
• All customers are aware of a product during its introduction stage.

  False
• What is a key marketing goal during the introduction stage?

  Increase customer awareness
• New products often have a negative cash flow during the introduction stage.
• What pricing strategy involves setting a low initial price to encourage adoption?

  Penetration pricing
• Competitors may enter the market during the growth stage.
• What is the primary marketing goal during the growth stage?

  Build market share
• Economies of scale typically reduce unit costs during the growth stage.
• The maturity stage is characterized by slowing sales growth and intense competition.
• What is the main focus for a market-leading product during the maturity stage?

  Maximize returns
• Repositioning a product can extend its maturity phase.
• What is an example of a product successfully repositioned using an extension strategy?

  Lucasade
• Technological change is a major reason why products enter the decline stage.
• What is the recommended strategy for a product in the decline stage?

  Cut back on spending
• The product life cycle model is a theoretical concept.
• The shape of the product life cycle is the same for all products.

  False
• Which product has remained in the maturity stage without decline for many years?

  Heinz Baked Beans
• Wearable technology is currently in the launch phase of the product life cycle.
• What type of TV is considered an example of a mature product in the consumer electronics sector?

  LED TV
• DVDs are currently in the decline phase due to the rise of streaming services.