ITPEC FE Morning April 2023 Question 67

Source exam: ITPEC FE Morning April 2023Topic: Management Strategy

ITPEC FE Morning April 2023 — Question 67 of 80

Product Life Cycle — Maturity Stage — identify characteristics of each PLC stage.

The Product Life Cycle has 4 stages, each with distinct market characteristics:

StageDemandKey Focus
IntroductionPartial, new marketPersuade early adopters
GrowthRising, market recognizes valueExpand product line and channels
MaturityPeak, competition intensifiesDifferentiation, segmentation, cost reduction
DeclineDecreasingWithdraw or pivot to new markets

(b) is correct: demand grows but competition intensifies, requiring product differentiation, market segmentation, and cost reduction — all hallmarks of the maturity stage.

Why not others:
- (a) — describes the Decline stage (demand decreases, companies withdraw)

- (c) — describes the Introduction stage (partial demand, persuading specific targets)

- (d) — describes the Growth stage (market recognizes value, expanding channels, sales increase with investment)

Key rule: Maturity = saturated market + intense competition + differentiate or die + cut costs.

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