Answered: have to explain the following product…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Question

have to explain the following product life cycle graph and where is the ani-acne drink is placed.

Transcribed Image Text:Product's life cycle The product is yet to be made and strategically planned. The company needs to test the product then proceed to production and distribution; Then the firm will move to introductory stage by promoting the product using advertisements to convey information Sales and profits ($) Sales ANTI-ACNE DRINK Profits Time to consumers and make them aware. Product development Introduction Growth Maturity Decline Therefore, it is in product development stage which the cost of expense is higher than profit since there is no profit at all in this Losses/ investment ($) Since it is a brand-new product, it is in the "Product Development" stage. stage.

Expert Solution

Step 1

Product life cycle refers to marketing concept which explains that every product that exists in the market has a certain lifespan which all products have to go through. Studying the life cycle of a product helps a company to also understand what strategies to use at every stage of the lifecycle.

In a product life cycle, the life of the product starts at the point when it is newly launched in the market and ends at the point when the same product is taken off from the market. The products are generally taken down from the market due to reduction in the demands.