C.). Discuss the product life cycle theory and various strategies that firms adopt. (10 Marks)

Product life cycle the stages a product goes through from introduction to decline. The stages are:<br /><br />1. **Introduction**: The product is launched, and sales grow slowly as the market learns about it.<br />2. **Growth**: Sales increase rapidly as the product gains acceptance.<br />3. **Maturity**: Sales peak as the product saturates the market.<br />4. **Decline**: Sales decrease as the product becomes outdated or obsolete.<br /><br />Firms adopt various strategies at each stage:<br /><br />- **Introduction**: Focus on awareness and initial sales, often using promotional activities.<br />- **Growth**: Expand production and distribution to meet rising demand.<br />- **Maturity**: Maximize market share through competitive pricing and improved features.<br />- **Decline**: Reduce costs, phase out the product, or find new uses for it.