Product Life Cycle

5. Which phase of the Product life cycle is a downward turn in sales leading to the demise of a product.

• Introduction

• Growth

• Maturity

• Decline

Why does a company need to know what stage of the product life cycle its products are in?

• 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

In product life cycle maturity stage, the marketing objective is to

• create product awareness

• maximize market share

• defend market share and profits

• reduce expenditures

Product extension usually takes place during the

• Introduction phase

• Growth phase

• Maturity phase

• decline phase

Examples of product extension include

• entering new markets

• adding new features

• Changing product packaging

• All of the above

In the introduction phase, generally

• product prices are high

• Sales are high

• there is a lot of competition

• Companies usually make a lot of money in this phase

In the product growth phase, generally

• Profitability is stable

• Brand awareness is high

• Costs are reduced due to economies of scale

• Sales volumes peak

In the product maturity phase, generally

• prices tend to increase due to the proliferation of competing products

• Competition starts to decrease

• brand differentiation and feature diversification is emphasized to maintain or increase market share

• Profits tend to decrease

In the product decline stage, generally

• Prices and profitability diminish

• Efficiency in production, rather than increase in sales may lead to maintained profitability

• Changes in consumer taste and technology leads to reduction in sales

• All of the above

Marketing communications seeking to build product awareness and educate potential consumers about the product typically occurs during the

• Decline phase

• Growth phase

• Introduction phase

• Maturity phase