ITPEC FE Subject A April 2025 Question 50
ITPEC FE Subject A April 2025 — Question 50 of 60
The four Product Life Cycle (PLC) stages and their key signals:
| Stage | Key characteristic |
|---|---|
| Introduction | Demand is occasional; must create new demand |
| Growth | Market recognizes value; sales rise; expand product line and distribution |
| Maturity | Demand peaks; intense competition; differentiation and cost-cutting |
| Decline | Demand falls; companies exit; consider alternative markets |
Growth stage = market starts to understand the product's value → expand distribution channels and product line → increase in sales → requires continued investment.
Why not others:
- (a) Decline — demand decreases, companies withdraw, alternative market migration considered
- (b) Introduction — demand is occasional, key is exploiting new demand, niche market focus
- (c) Maturity — demand peaks, competition intensifies, differentiation and cost reduction become priorities
Key rule: Growth = rising sales + market expansion + investment needed. Maturity = peak demand + competition. Don't confuse them.
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