Product Life-Cycle Marketing Strategies

During this stage, sales start to fall. Extension strategies needed to pick up sales again.

• Introduction

• Growth

• Maturity

• Decline

Product life cycle shows the different stages that a product passes through and sales that can be expected at each stage

• TRUE

• FALSE

Actions a business can take to extend the life of a product and increase sales.

• Phase out product

• Extension Strategies

• Cost-cutting

• Phase out unprofitable outlets

A possible extension strategy is to invest in advertising. The drawback of this is that...

• It may attract new customers

• Adverts can be very expensive and do not guarantee increased sales.

• The business may not have full control

• Adverts are repetitive

Sales rate starts to slow, perhaps a competitor has launched something similar or customers just want something new.

• Decline

• Development

• Maturity

• Introduction

Which stage has the least production costs?

• Introduction

• Growth

• Maturity

• Decline

Which one of the following is NOT an extension strategy?

• Explore new markets

• Change the price of a product

• Lower production and eventually discontinue the product.

• add value

What should a business do in the intro stage?

• build up sales

• make lots of their product

• increase staff numbers

• increase customer awareness

What is happening at point C on the Product Life Cycle?

• Introduction

• Maturity

• Growth

• Decline

During this stage, the product is launched. Usually a loss is made during this phase as Sales are low (but increasing).

• Introduction

• Growth

• Maturity

• Decline