Understanding Product Life Cycle

The video discusses the evolution of products, comparing them to a lifecycle similar to living beings. It explains how products are introduced to fill market gaps, evolve to meet consumer needs, and eventually become obsolete. The lifecycle stages include introduction, growth, maturity, and decline. A case study of flat-screen TVs illustrates these stages, highlighting how they were initially costly but gained popularity, leading to market saturation and eventual decline as new models emerged. The video emphasizes the continuous cycle of innovation and replacement in the product market.

What is the primary reason for the introduction of new products in the market?

• To compete with other brands

• To replace outdated technology

• To fill a perceived gap in the marketplace

• To increase company profits

How are products similar to human life stages?

• They are manufactured, sold, and discarded

• They are born, grow, mature, and eventually die

• They are created, used, and recycled

• They are constantly changing and evolving

Why do some products stay in the maturity phase for a long time?

• They have no competition

• They continuously meet consumer needs

• They are technologically advanced

• They are heavily marketed

What was a significant challenge during the growth stage of flat-screen TVs?

• High production costs

• Lack of consumer interest

• Entry of new competitors

• Limited technological advancements

What was the initial consumer reaction to flat-screen TVs?

• Immediate widespread adoption

• Preference for older models

• Skepticism about quality

• Gradual realization of benefits

What is a key characteristic of products in the growth stage?

• Rapid sales increase

• High marketing costs

• Stable profits

• Limited consumer interest

What typically happens to sales and profits during the maturity stage of a product?

• Sales and profits both increase

• Sales peak but profits decline

• Sales decline but profits increase

• Sales and profits both decline

What is a common strategy for companies when a product reaches its decline phase?

• Introduce new models

• Reduce production costs

• Discontinue the product

• Increase marketing efforts

What is the main focus of the conclusion on the product life cycle?

• The importance of marketing

• The need for constant innovation

• The inevitability of product decline

• The role of consumer feedback