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Sales And Profits Assignment Discussion Paper

Question

During the product life cycle, sales and profits behave differently. Please list the 5 stages of the product life cycle and identify at which stage(s) either sales or profits are negative. Also, explain why either sales or profits are negative. Your answer should look like this:

A The 5 stages of the product life cycle are_____________

B During this (these) stage(s)_______

C This is because____________

Expert Answer

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Step-by-step

1st step
All steps
Answer only

Step 1/3

Step-1

A. Five stages are-
1.Introduction.
2.Growth.
3.Maturity.
4.Decline.
5.Exit.

Step 2/3

Step-2

B.
1. Introduction: During this stage, sales are low and profits are usually negative due to high costs associated with launching the product and advertising it to customers.

2. Growth: During this stage, sales increase rapidly and profits begin to rise.

3. Maturity: During this stage, sales flatten out and profits may be negative due to increased competition and promotional costs.

4. Decline: During this stage, sales begin to decline and profits become more negative due to reduced demand and increased competition.

5. Exit: During this stage, sales and profits are both negative as the product is no longer being produced and sold.

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Step 3/3

Step-3
C.
Therefore, stages 1 and 4 are the ones where either sales or profits are negative. Sales are negative in stage 1 due to the high costs associated with launching the product and advertising it to customers. Profits are negative in stage 4 due to reduced demand and increased competition.

Final answer

Conclusion-
Sales and profits behave differently during the product life cycle. Sales are negative in stage 1 and profits are negative in stage 4 due to a variety of factors Sales And Profits Assignment Discussion Paper

Expert Answer

Sales And Profits Assignment Discussion Paper

Question

During the product life cycle, sales and profits behave differently. Please list the 5 stages of the product life cycle and identify at which stage(s) either sales or profits are negative. Also, explain why either sales or profits are negative. Your answer should look like this:

A The 5 stages of the product life cycle are_____________ B During this (these) stage(s)_______ C This is because____________

Expert Answer

ORDER YOUR PAPER NOW

Step-by-step

1st step

All steps

Answer only

Step 1/3

Step-1

A. Five stages are-

1.Introduction.

2.Growth.

3.Maturity.

4.Decline.

5.Exit.

Step 2/3

Step-2

1. Introduction: During this stage, sales are low and profits are usually negative due to high costs associated with launching the product and advertising it to customers.

2. Growth: During this stage, sales increase rapidly and profits begin to rise.

3. Maturity: During this stage, sales flatten out and profits may be negative due to increased competition and promotional costs.

4. Decline: During this stage, sales begin to decline and profits become more negative due to reduced demand and increased competition.

5. Exit: During this stage, sales and profits are both negative as the product is no longer being produced and sold.

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Step 3/3

Step-3

Therefore, stages 1 and 4 are the ones where either sales or profits are negative. Sales are negative in stage 1 due to the high costs associated with launching the product and advertising it to customers. Profits are negative in stage 4 due to reduced demand and increased competition.

Final answer

Conclusion-

Sales and profits behave differently during the product life cycle. Sales are negative in stage 1 and profits are negative in stage 4 due to a variety of factors Sales And Profits Assignment Discussion Paper

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