Worksheets3.1 The product life cycle
Total questions: 20
Worksheet time: 9mins
During this stage, a business will research and devlop the product. Product testing and trials takes place.
Development
Introduction
Growth
Maturity
Decline
During this stage, the product is launched. Usually a loss is made during this phase as Sales are low (but increasing)
Development
Introduction
Growth
Maturity
Decline
During this stage, products sales increase profits start to be made. A business may need to increase outlets to reach new markets.
Development
Introduction
Growth
Maturity
Decline
During this stage, sales rate starts to slow, perhaps a competitor has launched something similar or customers just want something new.
Development
Introduction
Growth
Maturity
Decline
During this stage, sales start to fall. Extension strategies needed to pick up sales again.
Development
Introduction
Growth
Maturity
Decline
Actions a business can take to extend the life of a product and increase sales.
Extension strategies
Introduction
Growth
Maturity
Decline
Which stage has rapid sales?
introduction
maturity
decline
growth
Which stage has lots of competitors?
growth
maturity
introduction
decline
Which stage has the least production costs?
introduction
maturity
decline
growth
What should a business do in the intro stage?
make lots of their product
build up sales
increase staff numbers
increase customer awareness
What could a business do in the decline stage?
remove the product from the market
use a product extension strategy
increase production
sack the directors and start again
What is happening at point D on the Product Life Cycle?
Introduction
Decline
Maturity
Growth
What is happening at point F of the Product Life Cycle?
Growth
Maturity
Extension Strategy
Introduction
What is happening at point C on the Product Life Cycle?
Introduction
Decline
Maturity
Growth
A possible extension strategy is to add value. This means
Increasing the price of the product
Decreasing the price of the product
Add new features to the existing product
A possible extension strategy is to invest in advertising. The drawback of this is that...
Adverts can be very expensive and do not gurantee increased sales.
It may attract new customers
The business may not have full control
Adverts are repetitive
A possible extension strategy is to invest in new packaging. The advantage of this is that...
the improved packaging can give the impression of better quality.
Packaging is not very expensive
Packaging may look attractive
Which one of the following is NOT an extension strategy
advertising
change the price of a product
add value
Explore new markets
Lower production and eventually discountiue the product.
