product life cycle

Question 1

research and development

Answer 1

money is invested into developing the product, carrying out research and making a prototype

the business is making a loss at this stage

Question 2

introduction

Answer 2

the product is launched onto the market

the product is heavily advertised to inform customers

sales will be low at this stage with little to no profit

Question 3

growth

Answer 3

the product is becoming more well-known and popular

advertising continues but at a lower rate than before

sales are rapidly increasing. profit is beginning to be made

Question 4

maturity

Answer 4

sales and profits have reached their peak

the product is well established onto the market

advertising is only used as a reminder

new models/variations may be introduced to encourage long term sales

Question 5

decline

Answer 5

the product popularity has fallen

sales and profit are falling

there is strong competition in the market