Question

Which product life-cycle stage, if any, is the most important? Which stage is the riskiest? Which stage offers the greatest profit potential? Which stage appears to require the greatest amount of ‘hands-on’ management?

You may use practical examples to address these questions and to explain the thinking behind each of your answers.

Answer 1

1) Growth Stage: The most important stage of the PLC is the growth stage, this is because this is the stage in which the products become known to customers.The Growth stage is where the market share of product starts to grow.

2) Introduction stage: This is the riskiest because this stage can make or break company and its product. Introducing a new product to society can result in either a lot or few consumers depending on the longevity or lack thereof.

3) Maturity Stage: This is the stage where customers are sufficiently aware of the company and the market has grown considerably. Unlike the growth stage, the cost of marketing is reduced in this stage and higher margins can be earned from lower marketing cost.Therefore this is the stage with the highest profit making potential in the PLC.

4) The initial stages of the PLC are about building the brand, so both the introduction and the grotwh stage need more "hand-on" management experience.