The product lifecycle concept applies to individual brands of a product.
The correct answer and explanation is :
The correct answer is: True.
The product lifecycle concept applies to individual brands of a product. The product lifecycle (PLC) describes the stages a product goes through from its introduction to its eventual decline and discontinuation. These stages include introduction, growth, maturity, and decline, and they can be applied to individual products or brands within a broader product category.
Here’s a breakdown of how it applies to individual product brands:
- Introduction Stage: In this phase, the product or brand is introduced to the market. Sales start slowly, and the product may incur high costs related to marketing, distribution, and product development. At this stage, the focus is on building brand awareness and convincing customers to try the product.
- Growth Stage: If the product is successful, it enters the growth stage. Sales increase rapidly as more customers become aware of and adopt the product. Competitors may start to enter the market, but the brand is still gaining market share. Profits begin to rise as economies of scale reduce costs.
- Maturity Stage: At this point, the product has gained widespread market acceptance, and sales growth slows down. The market becomes saturated, with most potential customers already owning the product. Competition is intense, and the brand must focus on differentiation, cost-cutting, and maintaining customer loyalty. Many companies introduce new features or variations of the product to extend this stage.
- Decline Stage: Eventually, the product reaches the decline stage. This could be due to changing customer preferences, technological advancements, or the introduction of superior products. Sales decline, and companies may choose to discontinue the product, reduce marketing support, or sell the brand to another company.
In conclusion, the product lifecycle concept helps businesses manage their strategies by understanding where a particular brand or product stands in the market. It allows brands to tailor their marketing efforts, pricing strategies, and product development to the stage of the lifecycle the product is currently in.