Chapter 14
Some product life cycles also show an additional stage before the product comes onto the market. This is called the...
Development stage.
Charlotte enjoys trying new products and has a high need for variety. She visits Starbucks at least twice a week and rarely orders the same beverage twice. She recently noticed Starbucks's brand of coffee creamer at the grocery store and picked up the Cinnamon Dolce Latte flavor. Charlotte had never seen the item before but thinks it will be a great success. Based on this information, what stage of the product life cycle best describes the Starbucks creamers?
Introduction
Sales in the electric car industry are growing slowly, but profits on electric cars continue to be negative due to high production and marketing costs. The electric car industry is in which stage of the PLC?
Introductory stage
Bert's company is about to release a new electronics product. The electronics product is estimated to have a short life cycle before it is replaced by an upgraded one. The company would like to recover the capital spent to produce the product. It therefore decides to charge the highest possible price for the product upon release. Bert's firm recognizes this might provide an advantage to competitors who may release the product at a lower price, but it believes customers will feel that the higher price signals higher quality.What type of pricing strategy is Bert's company using for this product?
Price Skimming
What is the theory of the product life cycle?
The product life cycle is a theoretical model that explains what happens to sales and profit for a product over a particular period. This model has four stages: introduction, growth, maturity, and decline.
What is the product life cycle?
The product life cycle shows the stages which a product passes through over time. The stages show how the demand for the product will vary throughout its lifespan.
Sony and other makers of high-definition television sets have made the prices of these products more competitive, have increased the number and kinds of stores in which they are available, have offered a variety of choices, and are advertising extensively. These products appear to be in the ___________stage of the product life cycle. a) growth b) decline c) introduction d) maturity
a
Differentiating your product so that it will appeal to additional market segments occurs most often at which stage of the product life cycle? a) Growth b) Maturity c) Decline d) Introduction
b
The purpose of the product life cycle is it serves as a(n) __________. a) tool for measuring the forces of competition and the companies' break-even point b) tool that tells the marketing manager if the product market seems to be changing c) tool that indicates when the product has reached another stage in the cycle, and might require changes in the marketing mix d) indication of whether price is still greater than expenses for a given product line
b
Soho Bottling was started in a kitchen in Brooklyn, New York, and makes soft drinks. After going through the various steps in the new-product development process, when the company finally entered the commercialization stage of the new product development process, they knew to succeed they would have to: a) decide what stage of the product life cycle the product was in. b) determine the appropriate product bundling strategy. c) promote the product to distributors and retailers to get wide distribution. d) do the appropriate concept and environmental testing.
c
Products that the consumer purchases like insurance, burial services, or emergency car-towing are known as ___________ goods and services because they are not products that consumers regularly evaluate and consider purchasing. a) convenience b) shopping c) specialty d) unsought
d
The importance of the product life cycle is that: a) all products go through the product life cycle in the same length of time. b) in the growth stage, marketers differentiate their product from competitors. c) most brands follow the same pattern in the product life cycle. d) different stages in the product life cycle call for different marketing strategies.
d
When Nintendo reentered the video game market with the Wii, they priced the product lower than the newest Sony Playstation system in order to capture a large share of the market quickly. This strategy is called a: a) EDLP. b) skimming strategy. c) high-low pricing strategy. d) penetration strategy.
d
Which of the following would be considered a convenience good? a) A microwave oven b) An evening gown c) An automobile battery d) A candy bar
d
Anay is an account representative for Kind Bars, a snack bar made with natural ingredients. The snack bar segment faces intense competition from several brands such as NutriGrain, Clif Bar, and Lara Bar to name a few. Unfortunately, new products continue to enter the market, especially in the "health food" category. Anay meets frequently with store managers to discuss product placement and secure shelf space. Sales of Kind Bars are still increasing, thanks to an aggressive consumer promotion campaign. Based on this information, Kind Bars are in the _______ stage of the product life cycle.
growth
Alberto works for PepsiCo and is on the marketing team for Gatorade. The company has been concerned about Gatorade sales. Sales are still increasing, but at a slower rate. Gatorade has reduced prices but still maintains a dominant position in the market. Based on this description, Gatorade is in the _______ stage of the product life cycle.
maturity
In which stage of a product's life cycle would marketers find the need to communicate what makes its product different from others products?
maturity
Knowing what of the product life cycle a product is in helps marketers make intelligent and efficient marketing decisions.
stage
