Concept explainers
To determine: The marketing characteristics of various products as well as the services at each stage of the product lifecycle.
Introduction: The product lifecycle deciphers various stages involved in the life cycle of the product that is between the time it enters the market and exit from it. The life cycle of a product includes four stages that are the introduction of a product in the market, growth, maturity of the product and the declining stage.
Answer to Problem 1PC
The characteristics of the products and the services in the marketplace at various stages of the product lifecycle are summarized in the table below:
Introduction | Growth | Maturity | Decline | |
Sales | Low | Rising | Peak | Declining |
Profits | Negative to low | Rapidly rising | Peak to declining | Declining |
Typical consumers | Innovators | Early adopters and early majority | Late majority | Laggards |
Competitors | One or few | Few but increasing | The high number of competitors | The low number of competitors |
Table (1)
Explanation of Solution
The different stages of the product lifecycle are depicted in the figure given below:
Fig (1)
The first stage of the product lifecycle is the introduction stage of the product in the market where the sales, as well as the profits from the sale, is almost negligible. The innovators in the market are the only customers of the product and face competition from one or the other firm of its type.
The second stage is the growth of the product in the market and so it faces a rise in the sale and the profit margins. The customers are the early majority of the population that results in an increasing number of competitors of the product in the marketplace.
The third is the maturity stage of the product, the firm experiences the highest of the sales as well as the profit margins. Up to this level, the late majority fraction of population also joins the trail and thus the firm experiences the highest number of competitive firms in the marketplace.
The last stage is the sale, as well as the profit margin of the product, begins to decline and it then keeps on declining. The customers at this time are mainly the laggards and hence the firm has the least competition in the marketplace.
Therefore, it can be concluded that the different characteristics of the product, as well as the services in the market, are mainly the sale, profits, the customer base and the competition of firms with other firms in the market.
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