BUSINESS ADMINISTRATION
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Because sales decline in the growth stage
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Because marketing strategies are adjusted
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Because competitors have entered the market
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Because production is more efficient
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Detailed explanation-1: -Profits are low in this stage because things such as research and development, production and marketing costs are high. Prices are set high on the product or service to recoup some of the development and introduction costs (but may also be low as a way to more quickly build market share).
Detailed explanation-2: -Growth – In the growth stage, consumers start to take action. They buy the product; the product becomes popular and results in increased sales. There are other companies also that notice the product as it starts getting more attention and revenue.
Detailed explanation-3: -The major objective of the firm that continues with the product in the decline stage of product life cycle is to survive and make some profit out of the product. Firms normally reduce their product lines to a minimum during this stage.
Detailed explanation-4: -As the new product becomes established, the marketing efforts lessen and the associated costs of marketing and production drop. As the product moves from maturity to decline, so demand wanes and the product can be removed from the market, possibly to be replaced by a newer alternative.