marketing strategy

Question 1

what does a product life cycle show

Answer 1

shows the sales of a product over time

Question 2

what are the names of the 5 parts of the product life cycle

Answer 2

Development
Introduction
Growth
Maturity
Decline

Question 3

development stage

Answer 3

resaerch and development
marketing departemnt does makret research
costs are high, no sales yet to cover costs
has a high failure rate. often due to not enough demand or busienss cant make product cheap enough to make profit

Question 4

introduction stage

Answer 4

product is launched
busienss often promotoes prduct heavily to build sales
initial costs may be high to cover promotional costs-price skimming
alternatively, price could be set low to encourage sales-penetration pricing

sales can go up,but sales reveue has to pay for the high fixe costs of development before the product can make profit
business ditches productss wth disaapointing sales at this stage

Question 5

grwoth stage

Answer 5

sales grow fast
new customers and repeated customerrs
competitors may be attracted to makret
product often imporved and devleoped and may be tagete dat different makret segements

Question 6

maturity stage

Answer 6

sales reach a peak
profitbility increases as fixed costs for development have been payed for
at saturation9where marketis full and reached full potential) sales may begin to drop depedning on the product

more liekly to drop for long lasting products that do not need to be brough regualry from consumers

competition become firece so sales may fall
arent many new customers

Question 7

decline stage

Answer 7

product does not appeal to customers anymore sales fall rapidly nad profit decreases
if sales carry on falling, product may withdraw or sold to another business
decline caused often by products being obsolete, hange in consumer trends, poor marketing etc

Question 8

extensio stretagies

Answer 8

used to keep product going streonger for longer

used to imporve sales of a product that are starting to decline

Question 9

ways a business can extend its product life cycle

Answer 9

product devlpment-redesigning, imporving product
changing the design of the packaging, making it more up to date etc

promoting the product-running new ad campaign or using special offers or competitors