L10 Managing products Flashcards
1
Q
explain the product-cycle concept
A
2
Q
what are the ways that marketing executives manage a products life cycle
A
3
Q
describe the introduction stage
A
- stimulate trial
- create primary demand for product class
- create selective demand for specific brand
- skimming strategy with high initial price
- penetration pricing with low price
4
Q
describe the growth stage
A
- rapid sales growth
- more competitors enter market
- profits peak
- advertising for selective demand
- repeat purchasers
add new features
broaden distribution
5
Q
describe the maturation stage
A
- industry sales and product sales slow
- fewer new buyers, most are repeat
- profit declines due to fierce competition for buyers
- product differentiation
- marginal competitors leave the market
6
Q
describe the decline stage
A
- industry sales and product sales drop
- price decrease
- environmental changes cause disruption
- products are deleted from product line
- retain product but reduce marketing costs
