Question

Think about the stages of the product life cycle. Do you think it is more important for a business to focus on the introduction stage or the growth stage of a product? Why?

Answer 1

Product life cycle has following stages:

Introduction Stage

Growth Stage

Maturity Stage

Decline Stage

As far as first two stages, introduction and growth stage are concerned, business should focus on both stages, both are very much important but the introduction stage should be given and assign more focus and importance because it is the very first stage of the product life cycle, it is known as the make or break phase for any brand. Firm should handle it very carefully, they should assign their resources properly to this stage as this stage has negative profits, only innovators will be buying the product and there will be high costs per customer. This stage will set the tone for the remaining stages, it will create brand awareness which will then further be used and harvested in the next stages, therefore, this stage is very important and needs much focus, attention and planning.