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Identify and chart the stages of the Product Life Cycle in the space provided. - Leaving Cert Business - Question 10 - 2001
Question 10
Identify and chart the stages of the Product Life Cycle in the space provided.
Worked Solution & Example Answer:Identify and chart the stages of the Product Life Cycle in the space provided. - Leaving Cert Business - Question 10 - 2001
Step 1
Introduction Stage
Answer
The introduction stage is when a product is first launched into the market. This stage involves high costs for marketing and development, with low sales as the product is still being introduced to potential customers. Companies focus on building product awareness and developing a market for the product.
Step 2
Growth Stage
Answer
The growth stage follows the introduction stage and is characterized by a rapid increase in sales. Marketing efforts begin to pay off, and more customers are becoming aware of and starting to purchase the product. Competitors may start entering the market, prompting the original company to enhance its market strategies.
Step 3
Maturity Stage
Answer
During the maturity stage, sales growth slows as the market reaches saturation. At this point, the focus often shifts to differentiating the product from competitors and maintaining market share. Companies may implement promotional strategies to prolong the maturity period.
Step 4
Decline Stage
Answer
The decline stage is when sales and market interest begin to decrease, often due to market saturation or the introduction of newer products. Companies may choose to discontinue the product, sell it off, or reduce marketing efforts as they shift focus to more profitable items.