marketing lesson 3 Flashcards
Product life cycle steps in order
- Introduction
2.Growth
3.maturity
4.Decline
Introduction Definition
A new product is introduced into the market.
Growth Definition
Product is successful as the market grows and competition enters the market.
Maturity Definition
Sales flatten. The market is saturated meaning that all customers who want the product have it so manufacturers are now competing for existing customers.
Decline Definition
Consumers have decided that the product no longer satisfies their needs, or they discovered new and better products
product for decline
Nothing new, Not worth redesigning
product for maturity
Start cost cutting. Improvements are already done.
product for growth
Make improvements to keep up with others.
product for introduction
It is very different from existing products so customers don’t realize how it can satisfy their needs.
price for introduction
High pricing because 0 competition
price for growth
Price lowered because competition.
price for maturity
Lower as result of mass competition
price for decline
As low as it can while still making a profit
Place for decline
Where there may be a market for the product or a new market has been located
place for maturity
Global as result of market saturation
place for growth
Expand to a national level as product enters new markets.
place for introduction
Local to feel out the market and make adjustments.
promotion for introduction
To inform customers what product is and does.
promotion for growth
Persuade customers why your product is best
promotion for maturity
Remind consumers your brand is best
promotion for decline
Depends where the product sits in the life cycle of the new market.
Name all 13 pricing stradigiezs.
premium pricing
penetration pricing
economy pricing
price skimming
physological pricing
product line pricing
pricing variations
optional product-pricing
Captive Product pricing
Product Bundle Pricing
Promotional Pricing
Geographical pricing
value pricing
define value pricing
sets prices primarily according to the perceived value of a product or service to the customer rather than according to the cost of the product or historical prices.
define geographical pricing
different prices for customers in different parts of the world
define promotional pricing
using incentives to encourage purchase. like coupons
define product bundle-pricing
sellers combine several products at one lower bundled price
define captive product pricing
products packaged together that complement each other with no price increase
describe optional product-pricing
base model with add-on options as extras
describe pricing variations
different pricing at different times. off-peak pricing,early booking discounts.
describe product line pricing
rationale of a product range
describe physocological pricing
to get a customer to respond to an emotional, rather than rational basis
describe prick skimming
where prices are high during product/service introduction to market.
describe economy pricing
placed at ‘no frills’, low price. ‘economy’ brands
describe penetration pricing
offers low price to gain market share- then slowly increases price
describe premium pricing
Uses a high price, but gives a good product/service in exchange
