1.3.5 Flashcards
What are the stages of the product lifecycle?
Research and Development, Introduction, Growth, Maturity, Decline.
Where are sales the highest in the product lifecycle?
Maturity
What method can delay the decline phase?
Lifecycle extension strategy
What phase has the highest costs?
Research and Development
What are 6 examples of lifecycle extension strategies?
updating packaging
adding more or different features
changing target market
advertising
price reduction
What are the five stages of the product lifecycle?
Introduction, Growth, Maturity, Decline, and Extension.
True or False: The introduction stage of the product lifecycle typically has high sales volume.
False.
Fill in the blank: The _____ stage is characterized by increasing market acceptance and sales growth.
Growth
What is the primary goal during the maturity stage of the product lifecycle?
To maintain market share and maximize profit.
During which stage do products usually experience the highest level of competition?
Maturity.
What is a common strategy used during the decline stage?
Product discontinuation or finding niche markets.
Multiple Choice: Which stage involves heavy marketing to create awareness? A) Growth B) Introduction C) Decline
B) Introduction.
What happens to profits during the decline stage?
Profits typically decrease.
True or False: Extending the product lifecycle is impossible.
False.
What is one method to extend the product lifecycle?
Rebranding or repositioning the product.
Fill in the blank: The _____ stage is when a product starts to lose its market share.
Decline
What is a key characteristic of the introduction stage?
Low sales and high costs.
During which stage do customers become more price-sensitive?
Decline.
What marketing strategies are often used in the growth stage?
Increased advertising and distribution efforts.
Multiple Choice: Which stage typically has the highest marketing costs? A) Maturity B) Growth C) Introduction
C) Introduction.
What is the significance of the maturity stage?
It is the period of peak sales and market saturation.
True or False: A product may skip stages in the product lifecycle.
True.
What does a product’s decline indicate?
It may be time to innovate or phase out the product.
Fill in the blank: The _____ stage involves product modifications to attract new customers.
Maturity
What are the potential outcomes of the decline stage?
Product discontinuation or reinvention.
What role does market research play in the product lifecycle?
It helps identify customer needs and market trends.
Multiple Choice: Which stage is focused on building product awareness? A) Maturity B) Introduction C) Decline
B) Introduction.
What is a common trap for products in the maturity stage?
Complacency leading to market share loss.
True or False: The product lifecycle is the same for all products.
False.
What can companies do to rejuvenate a product in decline?
Introduce new features or variations.
Fill in the blank: In the _____ stage, companies often reduce marketing budgets.
Decline
What is the importance of the extension phase in the product lifecycle?
It allows for sustained profits and market presence.
What is the Boston Matrix primarily used for?
The Boston Matrix is used for portfolio analysis to assess the performance and potential of different business units or products.
True or False: The Boston Matrix categorizes products into four quadrants based on market growth and market share.
True
Fill in the blank: The four categories in the Boston Matrix are ___, ___, ___, and ___.
Stars, Cash Cows, Question Marks, Dogs
Which category in the Boston Matrix represents products with high market share in a fast-growing market?
Stars
What strategy is typically recommended for products classified as ‘Question Marks’ in the Boston Matrix?
Invest to increase market share or divest if the market does not show potential.
What is the Boston Matrix primarily used for?
Evaluating a company’s product portfolio.
True or False: The Boston Matrix categorizes products into four quadrants.
True.
Fill in the blank: The four categories in the Boston Matrix are Stars, Cash Cows, __________, and Dogs.
Question Marks.
What is a major limitation of the Boston Matrix regarding market growth?
It oversimplifies market dynamics and does not account for external factors.
Multiple Choice: What does the ‘Cash Cow’ quadrant represent?
Products with high market share in a low growth market.
True or False: The Boston Matrix provides a clear strategy for product development.
False.
What aspect of product life does the Boston Matrix fail to consider?
The life cycle stage of each product.
Short Answer: Name one external factor that the Boston Matrix does not account for.
Economic changes.
Fill in the blank: The Boston Matrix requires accurate __________ data to be effective.
Market share.
What is a common critique of the Boston Matrix’s framework?
It is too simplistic and does not reflect complex market realities.
Multiple Choice: Which quadrant is associated with high growth and low market share?
Question Marks.
True or False: The Boston Matrix can help identify which products to discontinue.
True.
What is one reason why companies may misclassify products in the Boston Matrix?
Lack of accurate market research.
Short Answer: How does the Boston Matrix categorize products based on market conditions?
By market growth and market share.
Fill in the blank: The Boston Matrix assumes that higher market share leads to __________.
Higher profits.
Multiple Choice: Which quadrant suggests a product is not performing well?
Dogs.
True or False: The Boston Matrix can be used for both new and existing products.
True.
What does the ‘Star’ quadrant represent in terms of market conditions?
High market share in a high growth market.
Short Answer: Why might the Boston Matrix lead to poor strategic decisions?
It may oversimplify complex market dynamics.
Fill in the blank: The Boston Matrix does not provide specific __________ for product management.
Actionable strategies.
Multiple Choice: Which of the following is NOT a category in the Boston Matrix?
Innovators.
True or False: The Boston Matrix is a static model that does not account for changes over time.
True.
What is a potential impact of relying solely on the Boston Matrix for decision-making?
Neglecting innovation opportunities.
Short Answer: How can market trends affect the Boston Matrix classification of products?
They can change market growth and share dynamics.
Fill in the blank: The Boston Matrix is also known as the __________ model.
Growth-Share.
Multiple Choice: Which quadrant indicates a product that needs investment to grow?
Question Marks.
What is mass marketing?
Mass marketing is a marketing strategy that aims to reach a large audience with a single message, often through mass media.
True or False: Mass marketing is tailored to specific customer segments.
False
What is one primary benefit of mass marketing?
One primary benefit of mass marketing is the potential for high sales volume due to reaching a wide audience.
Fill in the blank: Mass marketing often relies on __________ to disseminate its messages.
mass media
What is a key disadvantage of mass marketing?
A key disadvantage of mass marketing is that it may not effectively address the needs or preferences of specific customer segments.
Which of the following is NOT a characteristic of mass marketing? A) Broad reach B) Customization C) Cost efficiency D) High exposure
B) Customization
Short Answer: Name one industry that often utilizes mass marketing strategies.
Consumer goods industry.
True or False: Mass marketing can lead to brand loyalty.
False
What type of products are typically associated with mass marketing?
Products that are low-cost and have a wide appeal, such as everyday consumer goods.
How does mass marketing impact advertising costs compared to targeted marketing?
Mass marketing typically lowers advertising costs per unit due to its broad reach.
What is niche marketing?
Niche marketing is a strategy that focuses on a specific, well-defined segment of the market.
True or False: Niche marketing targets a broad audience.
False
Fill in the blank: Niche marketing aims to meet the needs of a __________ group of consumers.
specific
What is one primary benefit of niche marketing?
It allows businesses to cater to the unique needs of a specific customer group.
Multiple Choice: Which of the following is a characteristic of niche marketing? A) Broad audience B) Specialized products C) General advertising
B) Specialized products
What is a potential drawback of niche marketing?
Limited market size can restrict growth opportunities.
True or False: Niche marketing can lead to less competition.
True
What type of research is essential for successful niche marketing?
Market research to identify and understand the target niche.
Fill in the blank: Niche marketing often involves __________ marketing strategies.
targeted
What is one way niche marketing can enhance customer loyalty?
By providing tailored products or services that meet specific customer needs.
Multiple Choice: Which of the following is NOT a benefit of niche marketing? A) Increased customer loyalty B) Higher marketing costs C) Less competition
B) Higher marketing costs
What is a common mistake businesses make when pursuing niche marketing?
Failing to adequately research and understand the niche market.
True or False: Niche marketing can be more cost-effective than mass marketing.
True
What role does social media play in niche marketing?
It helps businesses reach and engage with their specific target audience effectively.
Fill in the blank: A successful niche marketing strategy often relies on __________ communication.
personalized
What is the impact of niche marketing on pricing strategies?
It allows businesses to potentially charge premium prices due to specialized offerings.
Multiple Choice: Which factor is crucial for identifying a niche market? A) Random selection B) Customer demographics C) Mass appeal
B) Customer demographics
What is one challenge of niche marketing?
The risk of market saturation if the niche becomes too popular.
True or False: Niche marketing can limit a company’s ability to diversify its product line.
True
What is a key performance indicator for niche marketing success?
Customer retention rates.
Fill in the blank: Niche marketing often requires a deep understanding of __________ needs.
customer
What can niche marketers use to differentiate their products?
Unique features or benefits that cater specifically to their target audience.
Multiple Choice: Which of the following is a risk associated with niche marketing? A) High customer loyalty B) Limited customer base C) Increased competition
B) Limited customer base
What is one way to measure the effectiveness of a niche marketing strategy?
Analyzing sales growth within the targeted niche.
What does B2B stand for in marketing?
Business-to-Business
True or False: B2B marketing typically involves selling products or services directly to consumers.
False
Fill in the blank: B2B marketing often focuses on __________ relationships.
long-term
Which of the following is a common strategy used in B2B marketing? A) Social media ads B) Trade shows C) Email marketing D) All of the above
D) All of the above
What is the primary goal of B2B marketing?
To build relationships and generate leads that convert into sales.
What does B-2-C stand for?
Business-to-Consumer
True or False: B-2-C marketing involves direct sales from businesses to individual consumers.
True
Fill in the blank: B-2-C marketing primarily focuses on the __________ of products and services to end users.
promotion
Which of the following is a common channel used in B-2-C marketing? (a) Wholesale distributors (b) Retail stores (c) B2B marketplaces
b) Retail stores
Name one strategy commonly used in B-2-C marketing to engage consumers.
Social media marketing
