MBA 706 FINAL EXAM 2025/2026 GRADED A+ QUESTIONS
AND 100% ANSWERS
Product Life Cycle - introduction, growth, maturity, decline
Most product life cycles are portrayed as bell-shaped curves
Four key assumptions of product life cycle - • Products have a limited life.
• Product sales pass through distinct stages, each posing different challenges, opportunities, and
problems to the seller.
• Profits rise and fall at different stages of the product life cycle.
• Products require different marketing, financial, manufacturing, purchasing, and human resource
strategies in each life cycle stage.
Introduction - A period of slow sales growth as the product is introduced in the market. Profits are
non-existent because of the heavy expenses of product introduction.
Growth - A period of rapid market acceptance and substantial profit improvement.
Maturity - A slowdown in sales growth because the product has achieved acceptance by most
potential
buyers. Profits stabilize or decline because of increased competition.
Decline - Sales show a downward drift and profits erode.
Introduction Stage - -Sales growth is low
-Profits are negative or low
-Promotional expenditures are high
-Prices are higher
-Focus is on buyers who are the most ready to buy
Growth Stage - To sustain rapid market share growth now:
-Improve product quality and add new features
-Add new models and flanker products
AND 100% ANSWERS
Product Life Cycle - introduction, growth, maturity, decline
Most product life cycles are portrayed as bell-shaped curves
Four key assumptions of product life cycle - • Products have a limited life.
• Product sales pass through distinct stages, each posing different challenges, opportunities, and
problems to the seller.
• Profits rise and fall at different stages of the product life cycle.
• Products require different marketing, financial, manufacturing, purchasing, and human resource
strategies in each life cycle stage.
Introduction - A period of slow sales growth as the product is introduced in the market. Profits are
non-existent because of the heavy expenses of product introduction.
Growth - A period of rapid market acceptance and substantial profit improvement.
Maturity - A slowdown in sales growth because the product has achieved acceptance by most
potential
buyers. Profits stabilize or decline because of increased competition.
Decline - Sales show a downward drift and profits erode.
Introduction Stage - -Sales growth is low
-Profits are negative or low
-Promotional expenditures are high
-Prices are higher
-Focus is on buyers who are the most ready to buy
Growth Stage - To sustain rapid market share growth now:
-Improve product quality and add new features
-Add new models and flanker products
