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This week you read about the Product Life Cycle (PLC) and how it relates to sales and marketing. For each of the five stages, briefly define the stage and try to name 2-3 products or services that are NOT listed in the textbook..
Product Development- When the company finds and develops a new product idea, product development starts. During product development, sales are zero, and the company’s investment costs increase.
Introduction – Sales slowly grow as the product is introduced in the market. Profits are still non-existent, because the heavy expenses of the product introduction overweigh sales.
Growth – This is when sales start increasing at their fastest rate e.g. Facebook, Apple
Maturity – This is the peak, whereby the sales are near their highest, but the rate of growth is slowing down,for example saturation e.g, Tweeter
Decline – Decline is the final stage of the life- of a product. In this stage, sales begin to fall
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