UNIT 4: PRODUCT LIFE CYCLE MODEL Flashcards
1
Q
WHAT IS A PRODUCT LIFE CYCLE? WHAT ARE THE STAGES?
A
Is the length of the time from a product being introduced to the customers until it’s removed from the market.
Stages: Introduction, growth, maturity, decline
2
Q
WHAT IS THE DEFINITION AND WHAT ARE THE CATEGORIES OF THE ADOPTERS? (5)
A
Divide customers into segments based on their willingness to try out new innovation or product.
- Innovators: they adopt new technology simply because it’s new.
- Early adopters: this group tends to create options which creates new trends.
- Early majority: this group makes decisions based on practical benefits over coolness.
- Late majority: shares some traits with the early ones but is more cautious before committing.
- Laggards: Slow to adapt to new ideas.
3
Q
IDENTIFY THE INTRODUCTION PERIOD OF PRODUCT LIFE CYCLE!
A
- It envolves developing a marketing strategy
- Advertising and investments are important
- The company should make the customers aware of the product
- It depends on the competition, innovation, customer needs
4
Q
IDENTIFY THE GROWTH PERIOD OF THE PRODUCT LIFE CYCLE!
A
- the product is ready to enter the market
- the product becoming widely available
- sharp upturn
- at this point competitors may enter the market with their products
- BRANDING IS IMPORTANT
5
Q
IDENTIFY THE MATURITY PERIOD OF THE PRODUCT LIFE CYCLE!
A
- a product is established in the market space
- many customers will now have bought the product
- branding, price, product differentiation is important to maintain market share
6
Q
IDENTIFY THE DECLINE PERIOD OF THE PRODUCT LIFE CYCLE!
A
- as the competition grows other companies try to lower their prices, develop new features
- decline can also caused by innovators
Customers may turn from the product in favor of new alternatives
7
Q
IDENTIFY WHAT IS A HIGH-LEARNING PRODUCT!
A
- it requires significant customer education
- for example: GPS: when it first entered the market people continued using maps as they did not rely on the product, now almost in every car you can find GPS or its other forms
- starts with a long introduction period
8
Q
IDENTIFY WHAT IS A LOW-LEARNING PRODUCT!
A
- their sales began very quickly due to how simple the product is
- customers can understand the product right away
- for example: RED-BULL energy drink
- short introduction period
9
Q
IDENTIFY WHAT IS A FASHION PRODUCT!
A
- it changes with the style of the times
- they usually go from the introduction period to decline period and reappear
- for example: adidas superstar shoes
10
Q
IDENTIFY WHAT IS A FAD PRODUCT!
A
- it experiences rapid sales and it declines with almost the same speed
- for example: fidget spinners
