Understanding the Product Life Cycle

Neha is launching a new app in the market. What is the first stage of the Product Life Cycle (PLC) for her app?

• Growth

• Introduction

• Maturity

• Decline

Answer explanation

The first stage of the Product Life Cycle (PLC) is the Introduction stage. This is when a product is launched into the market, and awareness is created among consumers, setting the foundation for future growth.

Matilda is launching a new product in the market. During which stage of the PLC are her advertising costs typically high, and sales growth is slow?

• Growth

• Maturity

• Introduction

• Decline

Answer explanation

During the Introduction stage of the Product Life Cycle (PLC), companies invest heavily in advertising to create awareness, leading to high costs, while sales growth is typically slow as the product is just entering the market.

Thomas has launched a new smartphone model. At which stage of the Product Life Cycle (PLC) do sales begin to increase rapidly as the product gains market acceptance?

• Growth

• Maturity

• Introduction

• Decline

Answer explanation

Sales begin to increase rapidly during the Growth stage of the Product Life Cycle (PLC) as the product gains market acceptance, leading to higher demand and sales.

Florence is analyzing the product life cycle of a popular smartphone. She wants to know which stage of the PLC is often the longest and most profitable?

• Introduction

• Growth

• Maturity

• Decline

Answer explanation

The Maturity stage of the Product Life Cycle (PLC) is often the longest and most profitable, as products have established market presence, leading to stable sales and maximized profits before facing competition and market saturation.

Leo is running a lemonade stand in his neighborhood. After a few months, he notices that almost everyone in the area has already tried his lemonade, and he struggles to find new customers. What is the term used for this point in his business?

• Growth

• Maturity

• Saturation

• Decline

Answer explanation

The term 'Saturation' refers to the stage where sales reach their highest point, and the market is filled, making it difficult to attract new customers. This is distinct from 'Maturity', which indicates stable sales without growth.

Freya is managing a product that is nearing the end of its life cycle. Which of the following is NOT an extension strategy she could use to prolong the product's life cycle?

• extension

• Re-branding

• extension

• Repackaging

• extension

• Increasing production costs

• extension

• Introducing new features

• not an extension

• Reducing price

Answer explanation

Increasing production costs does not help prolong the product life cycle. In contrast, strategies like repackaging, re-branding, and reducing price aim to boost sales and extend the product's market presence.

Ava is working on a marketing project for a popular smartphone brand. What is the primary goal of extension strategies in the context of the product life cycle?

(a)  

• To increase production costs

• To extend the lifespan of a product or service
• To decrease the quality of the product

• To reduce the number of competitors

Answer explanation

The primary goal of extension strategies is to extend the lifespan of a product or service, allowing it to remain relevant and profitable in the market for a longer period.

Mia is working on a marketing project and needs to find a way to extend the life of a product. Which extension strategy involves selling the same product under a new brand identity?

(a)  

• Product modification

• Repackaging

• Re-branding
• Advertising

Answer explanation

Re-branding is the strategy of selling the same product under a new brand identity, which can help refresh its image and attract new customers. This distinguishes it from product modification, repackaging, and advertising.

William is managing a local bakery and decides to reduce the price of their popular cupcakes as an extension strategy. What is a common implication of this decision?

(a)  

• It decreases customer satisfaction

• It boosts sales by making the product more afforda
• It increases production costs

• It reduces the product's market visibility

Answer explanation

Reducing the price of a product typically makes it more affordable, which can attract more customers and boost sales. This strategy is often used to increase market penetration and enhance competitiveness.

Priya is managing a product that has been in the market for several years. She has decided to withdraw the product from sale. Which stage of the PLC is Priya dealing with?

(a)  

• Introduction

• Growth

• Maturity

• Decline

Answer explanation

The Decline stage of the Product Life Cycle (PLC) is when sales decrease, prompting decisions on whether to withdraw the product or find ways to extend its life cycle.