Product Life Cycle (Steps)

In Diploma exam, answer of PLC no need go to too detailed information, so just point out the general explanation for each step, no need to touch on about strategy for that..

1. Introduction:
-new product go in to market, low product recognition by consumer, low sales
-low quantity produced, so high cost, high selling price
-high advertisement cost and promotion
-maybe no profit or loses in this step
-no competition

2. Growth
- more customer become aware of product, sales increase
-Quantity produced increase, lower cost, so profit rises
-price maintain high if demand high
-increase advertisement
-expand distribution, enlarge the market
-competitor may join in the market in this situation, adjust the price if necessary to prevent them enter into market. (strategy not too necessary to write)

3.Maturity
-sales are stable and continuous to increase, is most profitable step
-brand awareness high, so reduce the promotion and advertisement
-slow expand
-many competitor in the market

4.Decline
-other new product arise, consumer tend to another product
-sales decline
-cost increase
-price decrease, less profit or no profit



a simple diagram to easier remember the key points.
actually can have a fast draw on blank paper which left of the answer paper when exam,
so that you can answer it very fast..
ps: u can add in one more column for 'situation', such as awareness or new product arise

estimated:
what is PLC or another short question (4 marks)
Steps of PLC (16 marks)