Question

- What are the four stages of the product life cycle?

- What are the six stages in the selling process? What role does each stage play?

Answer 1

The four stages of product lifecycle are the introduction stage, growth stage, maturity stage and decline stage.

1) Introduction stage: During this stage, companies launch their products in the market. In this stage, sales are low due to lower market penetration. The company needs to focus on marketing to improve the market visibility of the product.

2) Growth stage: In this stage, the sales of the products increases and hence the profitability increases. This helps in investing more in the promotional activities to increase the market share.

3) Maturity stage: In this stage sales growth starts to stabilize which result in a decrease in the growth rate of sales and hence profits also starts to stabilize or decline. In this stage companies focus remains on the maintaining the market share.

4) Decline Stage: During this stage, the sales of the product decline and hence the profitability decreases. To remain profitable company needs to improve to less expensive production methods and focus on best selling products.