During the Sales Life Cycle, Which Is an Example of What

question 29

Multiple Choice

During the sales life cycle, which is an example of what happens during the maturity phase?

• A) Sales and price decline, as do the number of competitors.
• B) Sales continue to increase but at a decreasing rate. The number of competitors and product variety decline.
• C) Sales increase rapidly along with an increase in product variety.
• D) Sales rise slowly as customers become aware of the new product or service. Product variety is limited.

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Definitions:

Diversification Strategy

A business policy of increasing the variety of products or markets served to spread risk and create opportunities for growth.

Business Area

A specific segment of a business organization that focuses on a particular market or product line.

Cash Cow

A business unit or product that generates a consistently high amount of cash flow, exceeding its maintenance and development costs, typically funding other business areas.

BCG Matrix

A tool to analyze business opportunities according to market growth rate and market share.