A. Profits remain stable at different stages of product life cycle
B. Products have an unlimited life
C. Product sales pass through distinct stages, each posing different challenges, opportunites and problems to the seller
D. Products require different marketing, financial, manufacturing, purchasing and human resource strategies in each of the life cycle stages
E. Products have a limited life
Choose the most appropriate answer from the option given below:
Product Life Cycle Assumptions Explained
The Product Life Cycle (PLC) concept hinges on specific assumptions about how products behave in the market over time. Understanding these is crucial for strategic decision-making.
Core Assumptions Analysis
The key assumptions underlying the PLC concept are:
- Assumption C: Product sales progress through distinct stages (e.g., introduction, growth, maturity, decline). Each stage presents unique challenges, opportunities, and problems for sellers.
- Assumption D: Different stages necessitate tailored strategies. Marketing, financial, manufacturing, purchasing, and HR strategies must adapt to the specific phase of the product's life cycle.
- Assumption E: Products have a finite lifespan. They do not last forever but eventually decline and may exit the market.
Why Other Options Are Incorrect
- Assumption A (Profits remain stable): This is incorrect. Profits typically vary significantly across PLC stages, often being low initially, peaking, and then declining.
- Assumption B (Products have unlimited life): This contradicts Assumption E and the fundamental idea of a "cycle," which implies a limited duration.
Conclusion
Therefore, assumptions C, D, and E form the basis of the Product Life Cycle model.
Important Questions from Product Life Cycle
- The proper sequence of design of a product is
- Consider the following statements related to different stages of PLC and choose the correct code :
(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 : - 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?
