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The PLC depicts a product’s sales history through various stages. Accordingly, adjustments and modifications need to be made because of changes in the environment, composition of the market. Justify the statements with the help of a suitable example. |
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Answer» Four stages are: 1) Introduction stage a) launch of a new product b) risky venture c) high operational and promotional cost d) negative profits 2) Growth strategy a) entry of new and old customers b) reduced costs c) increase in profits and competition 3) Maturity stage a) the sales volume peak b) drop in prices due to entry of competing products c) advertising expenditure incurred in brand differentiation 4) Decline stage a) low cost per customer b) declining profits and competitors c) declining sales |
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