Each product will have a life cycle, although its exact shape and length is not known in advance. Briefly explain each step in the PLC
What will be an ideal response?
Product development begins when the company finds and develops a new product idea. Sales are zero and the company's investment costs mount. Introduction is a period of slow sales growth as the product is introduced in the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction. Growth is a period of rapid market acceptance and increasing profits. Maturity is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or decline because of increased marketing outlays to defend the product against competition. Decline is the period when sales fall off and profits drop. A company may seek to reinvigorate a product in decline, maintain it hoping competition will diminish, harvest it, or drop it entirely.
You might also like to view...
Which of the following statements about the Bipartisan Campaign Reform Act is true?
A. It prohibited the national parties from raising and spending hard money. B. To compensate for the loss of hard money funds, contribution limits for individuals were raised. C. It prohibited corporations and unions from directly funding "issue ads." D. It made it illegal for corporations and unions to make contributions from their treasuries to advocacy groups.
Under a capital lease, the lessee does all of the following except:
A) debits Capital Lease Equipment. B) debits Rent Expense. C) records depreciation on the leased asset. D) credits Capital Lease Obligations.