1.3.5

Question 1

What is product life cycle?

Answer 1

Different stages a product goes through from its launch to decline in sales.

Question 2

What are 5 stages in Product Life Cycle?

Answer 2

Development
Introduction
Growth
Maturity
Decline

Question 3

What is the development stage in Product Life Cycle?

Answer 3

Focusing on designing and developing the products

Question 4

What is one drawback of developement stage?

Answer 4

Cash flow is negative due to investments without generating profit.

Question 5

What is the introduction stage in Product Life Cycle?

Answer 5

The time period the product is launched and customers are introduced.

Question 6

What is one implication of the introduction stage?

Answer 6

Cash flow is negative due to high marketing costs.

Question 7

What is the growth stage?

Answer 7

When the product experiences a big increase in sales.

Question 8

What are 2 reason the gorwth stage not last forever?

Answer 8

End of technological use

Saturated market

Question 9

Why is marketing used in growth stage?

Answer 9

Differentiate product from rivals.

Question 10

What is the maturity stage?

Answer 10

When sales begin to slow down.

Question 11

What is the decline stage?

Answer 11

Sales begin to decline eventually stopping completely.

Question 12

What are extention strategies?

Answer 12

Techniques used by the business to extend the products life cycle.

Question 13

What are the 2 choices a business has too choose from after decline stage?

Answer 13

Let the sales gradually decline and withdraw it from market.

Resuscitate the product and boost sales.

Question 14

What are extention strategies used for?

Answer 14

Boost sales after the decline stage.

Question 15

What are two extension strategies?

Answer 15

Product related

Promotion related

Question 16

What is product realted extention strategies?

Answer 16

Changing or modifying the product to make it more appealing to customers.

Question 17

2 ways of product related extensions?

Answer 17

Product improvements
Line extensions

Question 18

What is product improvements relating too?

Answer 18

Releasing a new version of the product with improvements.

Question 19

What does line extensions refer too?

Answer 19

New variants of original product.

Question 20

What are 3 promotion related strategies?

Answer 20

Advertising
Price promotion
Sales promotion

Question 21

Where does everything go in within the boston matrix?

Answer 21

Top left- stars
Top Right - Question marks
Bottom Left - Cash Cow
Bottom Right - Dogs

Question 22

What is the boston matrix?

Answer 22

Tool used by businesses to analyse their product portfolio and make strategic decisions about each.

Question 23

One benefit of using the boston matrix?

Answer 23

Allocate resources more effectively.

Question 24

What is

Hope
Stage in PLC
2 positives of

Cash Cow?

Answer 24

Hope - ‘Milk the cash cow for as long as possible’

Stage in PLC - Maturity

2 positives-
Significant positive cash flow
Invest minimal resources but strong source of income

Question 25

What can profits from cash cows be used for?

Answer 25

Re invest into Question marks and stars
to achieve more cash cows

Question 26

What is the situation and impact of cash cows?

Answer 26

Situation - High market share, Low Market growth

Impact - Extremely good sales, leading to high profits

Question 27

What is the situation and impact of Question Marks?

Answer 27

Situation - Low market share High Market growth

Impact - Requires Large investment, due to low MS

Question 28

What is

Hope
Stage in PLC
2 negative of

Question Marks?

Answer 28

Hope - Move to the star stage

Stage in PLC - introduction stage

2 Negatives -
Negative cash flow
Investment may lead to no growth

Question 29

What is the situation and impact of stars?

Answer 29

Situation - High market share High Market growth

Impact - High marketing costs, to stay relevant

Question 30

What is

Hope
Stage in PLC
1 negative & positive

of

Stars ?

Answer 30

Hope - Become a cash cow and milk it
Stage in PLC - growth stage
1 negative & positive

significant positive cash flow

High marketing costs

Question 31

What is the situation and impact of dogs?

Answer 31

Situation - Low market share Low Market growth

Impact - Little revenue, no growth potential

Question 32

What is

Hope
Stage in PLC
1 negative & positive

of

dogs?

Answer 32

Hope - To move away or extend life cycle
Stage in PLC - Decline
1 negative & positive

You can use it as a loss leader for stars

Little to no revenue

Question 33

What is mass Marketing strategy?

Answer 33

Target a large audience to focus on building brand awareness

Question 34

What are 2 methods of Mass Marketting?

Answer 34

Tv

Radio

Question 35

What is Niche Marketting?

Answer 35

Targeting a specific market segment to target specific groups of people.

Question 36

Why may you use Niche Marketting?

Answer 36

Building relationships with customers.

Question 37

What is B2B?

Answer 37

Selling products to different businesses.

Question 38

Why is B2B marketing used?

Answer 38

Building relationships demonstrating how your products will help them.

Question 39

What is the aim for B2C?

Answer 39

Build brand loyalty and creating positive customer experince.

Question 40

What is customer loyalty?

Answer 40

repeated sales that a business experiences.

Question 41

1 Positive of customer loyalty

Answer 41

Reduction in marketing costs

Question 42

3 ways to improve customer loyalty

Answer 42

Customer service
Loyalty cards
Saver schemes

Question 43

What is a saver scheme?

Answer 43

Discounts of pricing

Question 44

What are loyalty cards?

Answer 44

Cards which offer rewards for frequent purchases.

Question 45

What is customer service?

Answer 45

Positive customer service means that customers are likely to return.