Commercial Applications
In which stage of product life cycle, the company takes decision whether to maintain, harvest or drop the product?
- Introduction
- Growth
- Maturity
- Decline
Marketing Mix
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Answer
Decline
Reason — In the decline stage, sales fall down sharply and the product faces gradual displacement by new and superior products. At this stage, the company must take a critical decision on whether to maintain the product (with new features), harvest it (reduce expenditure to maximise short-term profit), or drop the product altogether.
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Related Questions
Which stage of the product life cycle is most likely represented by the products in "D category" in the image below?
- Introduction
- Growth
- Maturity
- Decline
Assertion (A): The decline stage of the product life cycle is characterized by a decrease in sales and market share.
Reason (R): Companies should invest heavily in marketing and innovation during the decline stage to revive the product's growth.
- A is true but R is false
- A is false but R is true
- Both A and R are true and R explains A.
- Both A and R are true but R does not explain A.
Which element of the marketing mix is most directly affected by the change illustrated in the image below?
- Product
- Promotion
- Place
- Price
In declining stage of PLC, which tool would be more preferred?
- Sales promotion
- Personal selling
- Advertising
- Publicity