Question

As a product moves through its life cycle its evolution can be depicted using an "S" curve, where the base of the "S" is the introduction stage, and the top of the "S" maturity and decline. As a product moves along the curve, different forms of product related innovation become dominant. (True/False). When a product reaches maturity continued product innovation tends to give way to innovation more focused on process improvements and efficiencies Select one: True False

Answer 1

As a product moves along the curve, different forms of product related innovation become dominant. The statement is true because in order to survive and grow continuous innovations are required to compete in the market.

When a product reaches maturity continued product innovation tends to give way to innovation more focussed on process improvements and efficiencies. This is true because in order to survive the competition ,one of the techniques to reduce cost can be through process improvements and efficiencies.

Depending on where the product is in the life cycle, different marketing strategies and new innovations will be used. The key is to recognise how sales are changing and the effects of competition on sales and profits. Most businesses will seek to develop new products to launch so that the growth period coincides with the saturation stage of existing products. This enables a smooth transition and enables profits to be maintained. The profits from products in the maturity stage tend to finance the development of new innovations.