Question

Draw and label a graph showing each stage of a marketing product lifecycle for sales versus time. Use an example of a device or a product to illustrate product development and extension.

Answer 1

We know that the product life cycle is a marketing concept which talks about the introduction stage to the removal from the market. In the product life cycle, not all the product to come in the final stage. Here using the example of Apple iPhone product life cycle. The product life cycle curve is given below;

Introduction stage

It is the first stage of the product life cycle. Here the firm experiencing a higher cost of production at the time of launching the product. At the initial stage, the market size is small, and the firm’s sales volume is meagre. The introduction stage of Apple iPhone kept the price very high because of the exclusive ownership of the product. Every Apple customer thinks that this product used by a few people. So apple attracts only premium customers.

Growth stage

It is the second stage of the product with high sales volume and profits. It is because the companies can benefit from economies of scale of production. Here the profit and revenue are also increased. In this stage, firms use more sophisticated promotional techniques. In the case of apple, they maintained the product quality and each Apple iPhone have different production stage.

Maturity stage

In the maturity stage, the producers are trying to maintain the market share they are already acquired. This the competitive stage where other companies also have an established market share. In this stage, they improved the modifications of the product. The products like Apple iPhone 8 is in the maturity stage and have a sustained sales volume.

Decline stage

It is the stage of a product is start to decline their sales volume. It is because the market has become saturated or the customers switching to other product available in the market. In the case of apple, they are not entered into the decline stage.