(a) Introduction – A period of slow sales growth and low profit.
(b) Introduction – A period of slow sales growth and non-existent profit.
(c) Growth – A period of rapid market acceptance and substantial profit improvement.
(d) Growth – A period of rapid market acceptance and slow profit improvement.
(e) Decline – Sales show a downward drift and profits stabilize.
(f) Decline – Sales show a downward drift and profits erode.
Codes :
Product Life Cycle Stages Explained
The Product Life Cycle (PLC) outlines the distinct phases a product experiences in the market. Evaluating the provided statements helps identify the correct descriptions for key PLC stages like Introduction, Growth, and Decline.
Introduction Stage Analysis
Statement (b) accurately defines the Introduction stage as "A period of slow sales growth and non-existent profit." In this initial phase, a product is newly launched, leading to low sales volume and minimal or negative profits due to high investment costs and limited market awareness.
Growth Stage Analysis
Statement (c) correctly describes the Growth stage: "A period of rapid market acceptance and substantial profit improvement." During this period, the product gains significant market traction, resulting in escalating sales and notably increasing profits as production becomes more efficient.
Decline Stage Analysis
Statement (f) accurately represents the Decline stage: "Sales show a downward drift and profits erode." This stage is characterized by decreasing sales figures and diminishing profits, often due to market saturation, changing consumer tastes, or technological advancements.
Identifying the Correct Code
By analyzing the characteristics of each stage:
- Statement (b) correctly describes the Introduction stage.
- Statement (c) correctly describes the Growth stage.
- Statement (f) correctly describes the Decline stage.
Combining these correct statements forms the basis for the correct code.
Important Questions from Product Life Cycle
- The proper sequence of design of a product is
- Which of the following marketing strategies is/are not used in ‘growth stage’ of the product life cycle ?
In which one of the following product life cycle stages a firm improves product quality and adds new features and improved styling ?
Which one of the following customers are risk averse, technology shy, and price sensitive?
Match List I with List II:
List- I
PLC Stage’
List – II
Communication Strategy
A.
Introduction (I)
Stress. brand differences and benefits and encourage brand switching B.
Maturity (II)
Build awareness and interest in the mass market C.
Growth (III)
Reduce to minimal level needed to retain customers D.
Decline (IV)
Build product awareness and trial among dealers
Choose the correct answer from the options given below -
