Product Lifecycle

Question 1

What is the product life cycle?

Answer 1

All products go through different stages, the number of sales is different for every product. All products have growth and decline shown in a graph.

Question 2

What is research and development

Answer 2

Before the product is launched. This is where the design is explored, tested and developed. Businesses invest into designing and improving and it is crucial for success

Question 3

What is introduction?

Answer 3

This is when the product is on the market. High advertising and promotion costs to create awareness

Question 4

What is growth?

Answer 4

This is increasing sales and profit, when the money they’ve spent on R&D is recouped. This increases market share

Question 5

What is maturity?

Answer 5

Sales reach the peak and maximised sales. The competition is more intense and they focus on keeping their market share and extending lifecycle through extension

Question 6

What is decline?

Answer 6

Decreased sales, due to competition changes in customer preferences or new products. They have to consider discounts if it is economically unavailable