Final answer:
A product manager needs to closely manage a product during the decline stage of its life cycle, especially when facing a significant sales drop. This stage requires weighing options like adjusting production levels, changing prices, and reconsidering the workforce.
Step-by-step explanation:
The product manager needs to manage the product very closely in the face of a drastic drop in sales during the decline stage of the product life cycle. This is a critical phase where important decisions need to be made, such as whether to expand or reduce production, set the price they choose, open new factories or sales facilities or close them, hire workers or to lay them off, and start selling new products or stop selling existing ones. During this stage, external factors such as a decrease in consumer income levels, anticipated product price increases, changes in the number of buyers, and availability of related products can dramatically influence a product's sales trajectory. Moreover, internal factors like poor design decisions can also lead to a drop in sales, making the management of the product even more challenging.