Question

31. The PLC depicts a product's sales history through varlous stages. Accordingly, adjustments and
modifications need to be made because of changes in the environment, composition of the market.
Justify the statements with the help of a suitable example​

Answer 1

Answer:

Explanation:

Four stages are:  

1) Introduction stage :

a) launch of a new product  .

b) risky venture  .

c) high operational and promotional cost  .

d) negative profits .

2) Growth strategy :

a) entry of new and old customers.

b) reduced costs .

c) increase in profits and competition .

3) Maturity stage :

a) the sales volume peak .

b) drop in prices due to entry of competing products  .

c) advertising expenditure incurred in brand differentiation  .

4) Decline stage :

a) low cost per customer  .

b) declining profits and competitors .

c) declining sales.