Product Life Cycle (PLC)

What are the four main stages of the Product Life Cycle (PLC)?

Introduction, Growth, Maturity, and Decline.

In which stage are customers first introduced to a new product?

Introduction.  

What is a key marketing activity during the Introduction stage?

Investing heavily in advertising to increase customer awareness.  

What is a common financial result during the Introduction stage?

Negative financial results due to lower sales.  

What happens to product demand if the product is successful?

It increases.  

What happens to sales and revenue during the Growth stage?

They increase.

What might marketers focus on during the Growth stage?

Differentiating their product from competitors.

What happens to competition during the Growth stage?

It increases.  

Which stage is typically the most profitable?

Maturity.

Why are costs lower in the Maturity stage?

The cost of producing and advertising declines.

What happens to competition during the Maturity stage?

It is at its highest.  

What happens to sales levels in the Maturity stage?

They stabilize.  

Name three reasons why products enter the Decline stage.

Market saturation, alternative products may exist, company reduces advertising.  

What are some options a company has in the Decline stage?

Modifying the product, marketing the product, repositioning the product, or phasing out the product.

What are two types of products that have non-traditional product life cycles?

Fads and Fashions.  

What is another name for a "fad"?

A trend.  

What is a key characteristic of a fad product's life cycle?

A quick rise in sales and popularity followed by a quick decline.  

How does a fad product's life cycle compare in length to a traditional product life cycle?

It is the shortest.  

What happens to fashion products over time?

They reappear because they are cyclical.

Why is the Growth stage crucial for marketers?

Because the product will either catch on or fail.  

What is a "bust" in the context of the product life cycle?

If a product is removed from the market before it has recovered its costs.