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Give the stages of a product’s life cycle and the accompanying characteristics

Give the stages of a product’s life cycle and the accompanying characteristics

Answers

Maurice
(a) Market introduction stage

(i) Costs are very high

(ii) low sales volumes to start

(iii) little or no competition

(iv) demand has to be created

(v) customers have to be prompted to try the product

(vi) makes no money at this stage

(b) Growth stage

(i) costs reduced due to economies of scale

(ii) sales volume increases significantly

(iii) profitability begins to rise

(iv) public awareness increases

(v) competition begins to increase with a few new players in establishing
market

(vi) increased competition leads to price decreases


(c) Maturity stage

(i) costs are lowered as a result of production volumes increasing and experience
curve effects

(ii) sales volume peaks and market saturation is reached

(iii) increase in competitors entering the market

(iv) prices tend to drop due to the proliferation of competing products

(v) brand differentiation and feature diversification is emphasized to maintain
or increase market share

(vi) Industrial profits go down


(d) Saturation and decline stage

(i) costs become counter-optimal

(ii) sales volume decline

(iii) prices, profitability diminish

(iv) profit becomes more a challenge of production/distribution efficiency
than increased sales
maurice.mutuku answered the question on August 1, 2019 at 07:57

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