Chapter 10 Flashcards
The stages a new product goes through in the marketplace is known as
Product Life Cycle
What causes products to move through the product life cycle?
Changing customer needs
Launch of better, more efficient products
SLIDE 7!!
What are the 4 stages of the product life cycle curve?
Introduction
Growth
Maturity
Decline
In what stage of the product life cycle curve has
- slow sales
- low profit
Introduction Stage
Demand for type of product is known as
Primary Demand
Having high prices to recover costs is known as
Skimming Pricing
What type of pricing has lower prices to gain larger market share?
Penetration Pricing
In what stage of the product life cycle curve has
- fast sales growth
- increasing profit
Growth Stage
What are common occurrences during the growth stage?
- Public awareness rises
- More competitors
- Repeat purchases
- New features
- Broad distribution
- Selective demand- demand for specific brand
In what stage of the product life cycle curve has
- sales growth slows and levels out
- profit growth slows and begins to drop
Maturity Stage
What are some common occurrences during the maturity stage of the product cycle?
- Product differentiation
- Many competitors
- Many products part of product line
- Focus on reminding consumer to buy your brand
In what stage of the product life cycle curve has
- slow decrease in sales
- Profits decrease at rapid pace
Decline Stage
What type of changes cause products to move into the decline stage of the product life cycle?
Environmental changes
(changing consumer wants, tech advances)
What term describes when a product is dropped from the product line?
Deletion
What term describes how products are retained but reduce marketing costs?
Harvesting
What are 3 ways to manage the product life cycle?
Product Modification
Market Modification
Repositioning the Product