2.4 Marketing Mix - Product Life Cycle

The Product Life Cycle is...

• Identifying (I), Predicting (P) and satisfying (S) customer needs and wants profitably 
• The collection of information on the habits of customers and teh market
• Shows the life of a product; split into categories based on sales / time
• Anything which satisfies customers’ needs and wants, and could be either a good or a service

Marketing is...

• Identifying (I), Predicting (P) and satisfying (S) customer needs and wants profitably 
• The collection of information on the habits of customers and teh market
• Shows the life of a product; split into categories based on sales / time
• Anything which satisfies customers’ needs and wants, and could be either a good or a service

Market Research is...

• Identifying (I), Predicting (P) and satisfying (S) customer needs and wants profitably 
• The collection of information on the habits of customers and teh market
• Shows the life of a product; split into categories based on sales / time
• Anything which satisfies customers’ needs and wants, and could be either a good or a service

Why does a company need to know the life-cycle stages of its products?

• To prevent imitators from entering the market
• To find new uses for the product
• To predict the length of the life cycle
• To adapt its marketing strategies

Why should a business continue to monitor an established product?

• To determine the acceptance of a product by a limited market
• To make sure that a marketing plan is firmly in place
• To make changes in order to extend a product's life cycle
• To evaluate how a product might fit the firm's product mix

Why might profits sometimes decline for the company that first introduced the product during the growth stage of a product’s life cycle?

• Because sales decline in the growth stage
• Because marketing strategies are adjusted
• Because competitors have entered the market
• Because production is more efficient

In a Product Life Cycle, the stage where there are steady sales and it becomes harder for marketers:

• Introduction
• Growth
• Maturity 
• Decline

What is one of the main reasons a companies' profits can start to decrease during the growth stage?

• Because sales decline in the growth stage
• Because marketing strategies are adjusted 
• Because competitors have entered the market
• Because production is more efficient 

A business should monitor an established product 

• To determine the acceptance of a product by a limited market
• To make sure that a marketing plan is firmly in place
• To make changes in order to extend a product's life cycle
• To evaluate how a product might fit the firm's product mix

In Product Life Cycle stages, the stage in which sales and profits decrease is called

• Introduction
• Growth
• Maturity 
• Decline