Question

To help differentiate a company's brand from competitors, an improved version is created, or new features are added to the original design, and product proliferation occurs in the __________ stage of the product life cycle.

Answer 1

Answer:

The correct answer is Growth Stage.

Explanation:

In the growth phase, the product is positioned in the defined segment, and begins to be accepted by consumers. This causes sales and therefore profits to increase.

Typically, the increase in profits occurs because manufacturing costs are reduced either by economies of scale or by gaining manufacturing experience.

Despite this, competition in this second stage of a product life cycle is usually not very intense. It is likely that new competitors have appeared, but these new players will try to differentiate their product and begin to build their brand positioning.

The key at this stage is to reinforce the positioning and make modifications to adapt the product to the growing demand.