Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

MARK 201 > 8.3 Product Life-Cycle Strategies > Flashcards

8.3 Product Life-Cycle Strategies Flashcards

1
Q

What is the product life cycle (PLC)?

A

The product life cycle is the course that a product’s sales and profits take over its lifetime.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How many stages are there in the product life cycle (PLC)?

A

There are five stages in the product life cycle.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the first stage of the product life cycle (PLC)?

A

The first stage of the product life cycle is product development.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the second stage of the product life cycle (PLC)?

A

The second stage of the product life cycle is introduction.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the third stage of the product life cycle (PLC)?

A

The third stage of the product life cycle is growth.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the fourth stage of the product life cycle (PLC)?

A

The fourth stage of the product life cycle is maturity.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the fifth and final stage of the product life cycle (PLC)?

A

The fifth and final stage of the product life cycle is decline.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What happens during the introduction stage of the product life cycle (PLC)?

A

During the introduction stage of the product life cycle, sales growth is slow and profits are nonexistent due to heavy expenses.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What happens during the growth stage of the product life cycle (PLC)?

A

During the growth stage of the product life cycle, there is rapid market acceptance and increasing profits.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What happens during the maturity stage of the product life cycle (PLC)?

A

Sales growth slows down as the product has achieved acceptance by most potential buyers.

Profits level off or decline due to increased marketing outlays to defend the product against the competition.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What happens during the decline stage of the product life cycle (PLC)?

A

Sales fall off and profits drop.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Do all products follow all five stages of the product life cycle (PLC)?

A

No, not all products follow all five stages of the product life cycle. Some products may skip stages, and some may not experience all five stages.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is a product class?

A

A group of products that are similar in function or customer group.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Do product classes have long or short life cycles?

A

Product classes tend to have longer life cycles compared to product forms or specific brands.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a product form?

A

A variation within a product class, such as different sizes or features.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is a brand? Can it’s lifecycle change quickly?

A

A brand is a name, term, design, symbol, or other feature that identifies a seller’s product and distinguishes it from other products.

a specific brand’s life cycle can change quickly due to changing competitive attacks and responses.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are styles?

A

Styles are basic and distinctive modes of expression, such as in homes, clothing, and art.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is a fashion?

A

A fashion is a currently accepted or popular style in a given field.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is a fad?

A

A fad is a temporary, intense, and widespread interest in a particular product or activity.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

How are the life cycles of styles, fashions, and fads different from those of products?

A

Styles, fashions, and fads have unique life cycles that are shown in Figure 8.3. They typically have shorter life cycles compared to product life cycles.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Figure 8.2: Sales and Profits over the Product’s Life from Inception to Decline

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Figure 8.3: Styles, Fashions, and Fads

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

How can marketers apply the product life-cycle (PLC) concept?

A

Marketers can use the PLC concept as a framework for describing how products and markets work, and to develop marketing strategies for the different stages of the life cycle.

24
Q

What are some practical problems with using the PLC concept for forecasting product performance or developing marketing strategies?

A

It is difficult to forecast the sales level at each PLC stage, the length of each stage, and the shape of the PLC curve. Also, marketing strategy is both a cause and a result of the PLC, which can make it difficult to develop effective strategies.

25
Q

Can marketers defy the “rules” of the product life cycle?

A

Yes, marketers can defy the “rules” of the product life cycle and position or reposition their products in unexpected ways to rescue mature or declining products and return them to the growth phase of the life cycle.

26
Q

What is the moral of the product life cycle?

A

The moral of the product life cycle is that companies must continually innovate and develop new products that bring new value to customers, or risk extinction.

27
Q

How can a company manage the life cycles of existing products for future success?

A

By reinventing them before competitors can, thus keeping them in a perpetual growth stage and avoiding maturity or decline.

28
Q

When does the introduction stage of the product life cycle (PLC) start?

A

The introduction stage of the product life cycle starts when a new product is first launched.

29
Q

Is sales growth typically slow or rapid during the introduction stage of the PLC?

A

Sales growth is typically slow during the introduction stage of the PLC.

30
Q

Are profits usually high or low during the introduction stage of the PLC?

A

Profits are usually negative or low during the introduction stage of the PLC due to the low sales and high distribution and promotion expenses.

31
Q

Why is promotion spending relatively high during the introduction stage of the PLC?

A

Promotion spending is relatively high during the introduction stage of the PLC to inform consumers of the new product and get them to try it.

32
Q

What kind of product versions are typically produced during the introduction stage of the PLC?

A

During the introduction stage of the PLC, the company and its few competitors produce basic versions of the product because the market is not generally ready for product refinements.

33
Q

What should a company, especially the market pioneer, do when choosing a launch strategy during the introduction stage of the PLC?

A

A company, especially the market pioneer, should choose a launch strategy that is consistent with the intended product positioning and realize that the initial strategy is just the first step in a grander marketing plan for the product’s entire life cycle.

The pioneer has the best chance of building and retaining market leadership if it plays its cards correctly from the start.

34
Q

What is the growth stage of the product life cycle (PLC)?

A

When sales start climbing quickly as the product gains acceptance in the market.

35
Q

What happens during the growth stage of the PLC in terms of competition, distribution outlets, and prices?

A

During the growth stage of the PLC, new competitors enter the market, leading to an increase in the number of distribution outlets. Prices typically remain where they are or decrease only slightly.

36
Q

What strategies do firms use to sustain rapid market growth during the growth stage of the PLC?

A

improving product quality,

adding new product features and models,

entering new market segments and distribution channels,

shifting advertising from building product awareness to building product conviction and purchase,

and lowering prices at the right time to attract more buyers.

37
Q

Do profits increase or decrease during the growth stage of the PLC?

A

Profits increase during the growth stage of the PLC as promotion costs are spread over a large volume and unit manufacturing costs decrease.

38
Q

What is the trade-off that firms face during the growth stage of the PLC?

A

Firms face a trade-off between high market share and high current profit during the growth stage of the PLC.

By spending a lot of money on product improvement, promotion, and distribution, the company can capture a dominant position but may give up maximum current profit, which it hopes to make up in the next stage.

39
Q

What is the maturity stage of the product life cycle (PLC)?

A

The maturity stage of the product life cycle is when a product’s sales growth slows down, and it lasts longer than the previous stages.

40
Q

What are the challenges that marketing management faces during the maturity stage of the PLC?

A

Increased competition, overcapacity, and the drop in profit.

41
Q

What do competitors typically do during the maturity stage of the PLC?

A

Competitors typically:

mark down prices,

increase their advertising and sales promotions,

and up their product development budgets to find better versions of the product during the maturity stage of the PLC.

42
Q

What happens to weaker competitors during the maturity stage of the PLC?

A

Weaker competitors start dropping out during the maturity stage of the PLC, and the industry eventually contains only well-established competitors.

43
Q

How does marketing costs change during the maturity stage of the PLC?

A

Marketing costs are usually lower during the maturity stage of the PLC than during the growth stage due to the product’s established distribution channels and loyal customer

44
Q

Why is it important for product managers to modify their mature products?

A

It is important for product managers to modify their mature products to meet changing consumer needs and increase consumption by finding new users and market segments.

45
Q

What is market modification, and how can it be used to modify a mature product?

A

Market modification is when a company tries to increase consumption by finding new users and new market segments for its brands. It can be used to modify a mature product by creating products and marketing programs aimed at different genders or demographics, or by encouraging current customers to use more of the product through meal ideas and recipes.

46
Q

What are some ways to modify the product to retain current users or attract new ones?

A

Modifying the product can involve changing characteristics such as quality, features, style, packaging, or technology platforms to retain current users or attract new ones.

For example, classic toy and game makers are creating new digital versions or add-ons for old favorites, and the Crayola brand has modernized its product line to meet the technology tastes of the new generation.

47
Q

What is marketing mix modification, and how can it be used to modify a mature product?

A

Marketing mix modification is improving sales by changing one or more marketing mix elements, such as offering new or improved services, cutting prices, launching better advertising campaigns, using aggressive sales promotions, or moving into new marketing channels to help serve new users.

48
Q

What is the main objective of modifying a mature product?

A

The main objective of modifying a mature product is to maintain its profitability by continuing to meet changing consumer needs and staying ahead of competitors.

49
Q

What is the decline stage of the product life cycle?

A

The decline stage is when a product’s sales growth slows down, and sales eventually start to decline, which is caused by technological advances, changes in consumer preferences, and increased competition.

50
Q

What are some reasons for sales decline?

A

Sales decline for various reasons, such as shifts in consumer tastes, increased competition, and technological advancements.

51
Q

What are the costs of carrying a weak product?

A

Carrying a weak product can be very costly to a firm. It can take up too much of management’s time, require frequent price and inventory adjustments, and cause customer concerns about the company and its other products.

52
Q

What are the options for managing products in the decline stage?

A

The options for managing products in the decline stage are to maintain, harvest, or drop them.

The company can also choose to reposition or reinvigorate the brand in hopes of moving it back into the growth stage of the product life cycle.

53
Q

Table 8.2: Summary of Product Life-Cycle Characteristics

A

Left to right: Introduction, Growth, maturity, Decline.

54
Q

Summary of Product Life-Cycle: Objectives

A

Left to right: Introduction, Growth, maturity, Decline.

55
Q

Table 8.2 Summary of Product Life-Cycle: Strategies (Product, Place, Distribution.)

A

Left to right: Introduction, Growth, maturity, Decline.

56
Q

Table 8.2 Summary of Product Life-Cycle: Strategies (Advertising, Sales Promotion.)

A

Left to right: Introduction, Growth, maturity, Decline.

MARK 201 (57 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions