Each product will have a life cycle, although its exact shape and length is not known in advance. Briefly explain each phase of the product life cycle

Question

What will be an ideal response?

Answer 1

-Product development begins when the company finds and develops a new product idea. Sales are zero and the company's investment costs mount.
-Introduction is a period of slow sales growth as the product is introduced in the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction.
-Growth is a period of rapid market acceptance and increasing profits. Maturity is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or decline because of increased marketing outlays to defend the product against competition.
-Decline is the period when sales fall off and profits drop. A company may seek to reinvigorate a product in decline or maintain it hoping competition will diminish or harvest it or drop it.