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Principle of marketing > Chapter 11 PLC > Flashcards

Chapter 11 PLC Flashcards

1
Q

PLC function

A

describe how stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions

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2
Q

the four stages of PLC

A

Introduction Stage

Growth Stage

Maturity Stage

Decline Stage

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3
Q

what is deletion and when does it happen?

A

Product deletion is the most drastic strategic decision a company can make—to drop a product from the line.

at decline stage

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4
Q

what is “harvesting”?

A

when a company reduces marketing support costs at decline stage

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5
Q 
stage 1 is characterized by (5)
growth
 profit
awareness 
promotion 
price
A 
This stage is characterized by:
Slow growth
No to low profits 
No to low awareness
Heavy promotions, trials
Price high (Skimming) or low (penetration)!
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6
Q

What is the marketing aim at stage 1

A

create and maintain awareness and selective demand and develop support service

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7
Q 
stage 2 is characterized by (7)
growth
 profit
awareness 
promotion 
price
distribution 
production
A 
Rapid growth
Appearance of Competitors
Profits peaks (due to aggressive pricing) 
High awareness
Increasing Production
Price – Competitive
Wide Distribution
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8
Q

What is the marketing aim at stage 2

A

The marketing aim is to increase and maintain demand (Firm and category)
Further develop support services

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9
Q 
stage 3 is characterized by (5)
growth
 profit
awareness 
new market
price and cost
A

This stage is characterized by:
Slowing of growth for the industry
Falling profits
Full awareness – repeat buyers, switch buyers or none
Few consumer entries and marginal producers exit
Reduction of costs and prices

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10
Q

What is the marketing aim at stage 3

A

The marketing aim is to create and maintain Market Share

Develop support services

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11
Q 
stage 4 is characterized by (4)
sales
 profit
trend
management attention
A 
This stage is characterized by:
Declining Sales
Declining and low profits 
Changing trends
Heavy management attention focused on:
Deletion
Harvesting (low marketing support)
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12
Q

the four dimensions of PLC

A
  1. variable length of PLC for different products
  2. Shape of a product life cycle is generalized
  3. the product level: variable life cycles regarding product class and product form
  4. the life cycle and consumers depend on the diffusion of innovation process
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13
Q

def. product class

A

the entire product class or industry.

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14
Q

def, product form

A

variations within the class.

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15
Q

what does mean “The shape of the product life cycle is generalized.”?

A

different product class have different time length of each stage.

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16
Q

shape of the product life cycle: high-learning product

A

an extended introductory period

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17
Q

shape of the product life cycle: low-learning product

A

a short introductory period.

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18
Q

shape of the product life cycle: fashion product

A

decline and reappear

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19
Q

shape of the product life cycle: fads product

A

a rapid introduction and equally rapid decline.

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20
Q

what is “diffusion of innovation process “?

A

the time it takes for a product to spread through the population.

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21
Q

the 5 stages of diffusion of innovation process

A

innovators, early adopters, early majority, late majority, and laggards.

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22
Q

Advertising plays a major role in the ___________ stage of the product life cycle, and ________ ______________ plays a major role in maturity.

A

introductory

product differentiation

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23
Q

How do high-learning and low-learning products differ?

A

High-learning products require significant education of the consumer and consequently, there is an extended introductory period. Low-learning products are the opposite of high-learning. Sales begin rapidly for low-learning products because little learning is required by the consumer.

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24
Q

Role of a Product Manager

A

manages the marketing efforts for a close-knit family of products or brands through three basic strategies

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25
Q

what are the three basic strategies usually applied by a product manager?

A
  1. modify the market
  2. modify the product
  3. . Re-positioning the Product by changing its relative position in the minds of consumers through changing one or more marketing mix elements.
26
Q

what is product modification

A

altering product characteristics, the quality, performance, appearance features, package, size to increase and extend use

27
Q

How to perform market modification (3)

A

finding new users, new uses, increasing product use among the users, create new use situations

28
Q

Four Factors trigger re-positioning of a product

A
  1. Four Factors trigger repositioning
  2. Reaching a New Market
  3. Catching a Rising Trend & emerging trend
  4. Changing the Value Offered
29
Q

which is the critical point to ensure the sustainable thrive of a product ?

A

Catching a Rising Trend & emerging trend

30
Q

what is CDI

A

Category Development Index

% of Product Category’s Total Market Sale in a Market Segment

31
Q

what is BDI

A

Brand Development Index

% of Brand’s Total Market Sale in Market Segment

32
Q

How does a product manager help manage a product’s life cycle?( 4 aspects)

A

A product manager helps manage a product’s life cycle by: (1) Developing and executing a marketing program for the product line described in an annual marketing plan, (2) approving ad copy, (3) media selection and, (4) package design. Product managers plan, implement, and control the marketing strategy.

33
Q

What does “creating new use situations” mean in managing a product’s life cycle?

A

Creating new-use situation means to find new uses for an existing product.

34
Q

Explain the difference between trading up and trading down in re-positioning.

A

Trading up involves adding value to the product (or line) through additional features or higher-quality materials. Trading down involves reducing the number of features, quality, or price.

35
Q

def. branding

A

managing a positive brand-experience for increases in consumer satisfaction.
involves activities in which an organization uses a name, a phrase, a design, a symbol(s), or a combination to identify its products and distinguish them from all others.

36
Q

def. Brand name

A

any word, device (design, shape, sound, coulor) or combination used to distinguish seller’s goods & services.

37
Q

def. trade name

A

A legal, commercial name under which a Company does business. Those names follow by ® or ©

38
Q

def. Trademark

A

Indicates that a firm has legally registered its brand or trade name and that the firm has their exclusive use of it.

39
Q

def. Brand Personality

A

Established brands take on a brand personality which is a set of human characteristics often associated with a brand name.

40
Q

def. Brand-Equity

A

A good brand leads to brand-equity, the added value a given brand name provides a product beyond the functional benefits provided. (ex. premium pay)

41
Q

Brand-equity provides (2 )

A

i) a competitive advantage and results in

ii) consumers willing to pay a higher price for a product with a high brand-equity.

42
Q

how to create this positive energy? 4 steps

A
  1. Developing positive brand awareness & association
  2. Establish brand meaning
  3. Eliciting proper/positive consumer’s response for brand identity
  4. Create consumer brand resonance ( active loyalty between the consumers and the brand)
43
Q

what are the two basic dimensions required to establish brand meaning ?

A
  1. Functional and performance-related

2. Abstract and imagery

44
Q

what are the four levels within customer-based brand equity pyramid? the same as the card 42

A
  1. brand salience
  2. brand performance = brand imagery
  3. consumer judgement = consumer feelings
  4. consumer brand resonance
45
Q

what does the customer-based brand equity pyramid reflect?

A

It is a mutual reaction on both subjective and objective sides

46
Q

def. Multiproduct branding

A

One name for all the firm’s products -– Family or corporate branding

47
Q

def. Co branding

A

Combining a pair or more recognized brands on a product

48
Q

def. Multi-branding

A

Giving each product its distinct name

49
Q

Private Branding

A

: manufactured by a supplier and sold Under a wholesaler or retailer brand.

50
Q

Cohort Brand Management

A

The bundling of a company multiple brands in a cohort for a Common Consumer Group.

51
Q

Mixed Branding

A

mixing a firm’s own brand and reseller’s brand because each reaches a different segment.

52
Q

def. Packaging

A

any container and information on it in which a product is offered for sale.

53
Q

Label

A

an integral part of the package and identifies the product or brand, who made it, where and when it was made, how it is to be used, and the package contents and ingredients.

54
Q

What do packaging and labelling do?

A

Create customer value by providing information

55
Q

how do marketers create value in three ways through packaging and labeling

A
  1. Communication benefits. (information, ingredients, instructions, etc)
  2. Functional benefits.(stacking, protection, convenience)
  3. Perceptual benefits. (the impression in the consumer’s mind)
56
Q

4 Contemporary Packaging and Labeling Challenges

A
  1. Connecting with Customers (aesthetically, perceptually, even emotionally).
  2. Environmental Concerns (lighter packaging, recyclables, green materials).
  3. Health, Safety and Security Issues (package made of safe and secure materials and keep the products safe and secure)
  4. Cost Reduction (packaging to reduce weight and bulk and reduce costs -10 to 15%)
57
Q

the most major trend in packaging

A
  1. environmental sensitivity

2. health and safety concerns

58
Q

def. warranty

A

a statement that indicates the liability of the manufacturer for product deficiencies

59
Q

4 types of warrenties

A
  1. expressed warranties
  2. limited-coverage warranty
  3. full warranty
  4. implied warranties
60
Q

How does a generic brand differ from a private brand?

A

A generic brand is a no-brand product, which is an alternative branding approach. A private brand is when a company manufactures products but sells them under the brand name of a wholesaler or retailer.

61
Q

Explain the role of packaging in terms of perception

A

Packaging and labelling is the perception created in the consumer’s mind. A package can connote status, economy, and product quality. Colour may also affect perceptions.

62
Q

What is the difference between an expressed and an implied warranty?

A

An express warranty is a written statement of liability. An implied warranty assigns responsibility for product deficiencies to the manufacturer

Principle of marketing (14 decks)

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