Future Business Leaders of America (FBLA) Advertising Practice test

What is the first stage of the product life cycle?

1. Introduction

2. Maturity

3. Growth

4. Decline

The correct answer is: Introduction

The first stage of the product life cycle is the introduction stage. This stage is critical because it marks the launch of a new product into the market. During this phase, awareness and interest begin to build among consumers, and the primary goals are to promote the product, establish a market presence, and attract early adopters. In the introduction phase, companies invest significant resources into marketing and advertising to inform potential customers about the product’s features and benefits. Sales tend to be low as the product is not widely recognized yet, and companies may not see profits in this stage since they are often recouping costs associated with development and initial marketing efforts. Understanding the introduction stage is crucial for businesses as it sets the groundwork for the product’s future trajectory through the growth, maturity, and decline stages of the product life cycle.