Final Exam Review Part 2 Flashcards
The stage of the product life cycle where product sales, revenues and profits begin to grow as the product becomes more popular and accepted in the market.
Growth Stage (Product Life Cycle)
advertising that is carried out in a factual manner. This form of advertising relies solely on the goods or services strengths and features, rather than trying to convince customers to buy a product using emotion
Informative Advertising
a form of marketing strategy under which a company tries to sell its product from a small vendor to a big store
Intensive distribution
the first stage in the product life cycle where a company tries to build awareness about the product or service in a market where there is less or no competition.
Introduction Stage (Product Life Cycle)
(blank) positioning can be identified in nearly every market. Often, consumers are searching for much lower prices and therefore accept less benefits.
less for much less
refers to the expansion of an existing product line.
line extension
a marketing strategy used by businesses to attract customers to a new product or service by offering a lower price during its initial offering. The lower price helps a new product or service penetrate the market and attract customers away from competitors.
market penetration pricing
a pricing approach in which the producer sets a high introductory price to attract buyers with a strong desire for the product and the resources to buy it, and then gradually reduces the price to attract the next and subsequent layers of the market.
market skimming pricing
The (blank) of the product life cycle shows that sales will eventually peak and then slow down. During this stage, sales growth has started to slow down, and the product has already reached widespread acceptance in the market, in relative terms.
Maturity Stage (Product Life Cycle)
an approach to advertising that tends to target a specific group of people in a niche market.
micromarketing
a buying situation in which an individual or organization buys goods that have been purchased previously but changes either the supplier or some other element of the previous order.
modified rebuy
The ability to produce a product that provides the customer with more benefits but at a lower price sometimes leaves the company with a loss as the low prices cannot cover high costs. (AKA winning value proposition)
more for less
A brand that selects this proposition will be able to justify a higher price by providing customers with a higher level of benefits in their brand or product.
more for more
is often used to boost a company’s position above that of their competitor. Customers are drawn to the company that provides the lower price and still offers the same product because they do not have to sacrifice the high quality they desire for a higher price.
more for the same
a system in which a company allocates a certain amount of money to its marketing budget based on specific objectives, rather than choosing an arbitrary amount or basing its marketing budget on sales revenues or projections alone.
objective and task method
