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(i) Draw and label the ‘product life cycle’ diagram - Leaving Cert Business - Question B - 2011
Question B
(i) Draw and label the ‘product life cycle’ diagram. (ii) Illustrate the methods a business could use to extend a product's life cycle.
Worked Solution & Example Answer:(i) Draw and label the ‘product life cycle’ diagram - Leaving Cert Business - Question B - 2011
Step 1
Draw and label the ‘product life cycle’ diagram.
Answer
The 'product life cycle' diagram consists of five stages: Introduction, Growth, Maturity, Saturation, and Decline. A correctly labeled graph will show the Sales Volume on the vertical axis and Time on the horizontal axis, with the curve depicting how sales volume changes during each stage of the product's life.
Step 2
Illustrate the methods a business could use to extend a product's life cycle.
Answer
To extend a product's life cycle, a business can adopt several strategies:
Product
- Improve the product: Enhance its features or design. For instance, adding new functionalities or introducing line extensions (different flavors or sizes) can help attract new customers and retain existing ones.
Price
- Adjust pricing strategies: Changing the price can increase sales volume. This could involve selling at a lower price to increase market share or a higher price for a more exclusive product offering.
Promotion
- Modify promotional methods: Adopting new promotional strategies, such as using social media ads or television marketing, can capture the interest of new customers, thus extending the product’s reach.
Place
- Change distribution channels: Selling through new platforms or markets (e.g., online sales) can expose the product to a wider audience, thereby extending its life cycle.
By implementing these strategies, businesses can successfully extend the life of their products in the market.