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Draw and label the ‘product life cycle’ diagram - Leaving Cert Business - Question B - 2011
Question B
Draw and label the ‘product life cycle’ diagram. Illustrate the methods a business could use to extend a product's life cycle.
Worked Solution & Example Answer:Draw and label the ‘product life cycle’ diagram - Leaving Cert Business - Question B - 2011
Step 1
Draw and label the ‘product life cycle’ diagram.
Answer
To create a product life cycle diagram, begin by drawing a graph with the vertical axis labeled 'Sales Volume' and the horizontal axis labeled 'Time.' The curve should consist of four key stages:
- Introduction: A low initial sales volume as the product is launched.
- Growth: Rapid sales increase as the product gains market acceptance.
- Maturity: Sales peak and start to stabilize.
- Decline: A decrease in sales as the product loses market appeal.
It is crucial to accurately represent these stages along with the respective sales volume on the graph.
Step 2
Illustrate the methods a business could use to extend a product’s life cycle.
Answer
To extend a product's life cycle, a business can adopt several strategies:
Product
- Improve the product/change its features: Enhance the design or functionality, or introduce new variations (like different flavors or sizes).
Price
- Reduce the price: Adjust the pricing strategy to attract more customers and increase sales volume.
Promotion
- Change the method of promotion: Implement new marketing strategies, such as switching to television advertising or utilizing social media, to reach a wider audience and boost sales.
Place
- Change the distribution channel: Enhance distribution methods to make the product more accessible to consumers, like using online sales channels or diversifying retailers.