Product life cycle and 4p-s

Question 1

What are the 4p-s?

Answer 1

product
price
promotion
place

Question 2

What are the steps of product life cycle?

(4)

Answer 2

1. Introduction stage
2. Growth stage
3. Maturity stage
4. Decline stage

Question 3

Introduction stage

product, price, promotion, place

Answer 3

just one variation of product (we don’t know if it is going to be successful)
price: low price or price skimming
high promoions, informative advertising
place: resellers only buy a few

Question 4

Growth stage

product, price, promotion, place

Answer 4

produce another variant
the new version is more expensive, the previous product is the same price
promotion: keep promoting
place: more and more people and companies buy it

Question 5

What is the economy of scale?

Answer 5

as you produce more and more of a product the costs go down after a time
-› more products but the same fixed costs (shipping, storage stb.)
-› each unit contributes more to the fixed costs

Question 6

Maturity stage

product, price, promotion, place

Answer 6

product: everyone who wants it has it already, no new people
max one new product but it’s cheap so the few people who still doesn’t have it should buy it
the price mostly drops or stays the same
promotions: reassuring advertising, reminder that they exist
place: they already have it

Question 7

Decline stage

product, price, promotion, place

Answer 7

product: try to get rid ot the last ones, giveaways
price: cheap or give it away free
promotion: none
place: resell market