Product Life Cycle
What stage of the product life cycle usually has the highest promotion costs and lowest profits?
Introduction
What is a product extension strategy?
A way to extend a product’s life after maturity
In the BCG Matrix, what is a “Cash Cow”?
A product with high market share in a low-growth market
What is the main goal of product placement in films or shows?
Increase brand awareness subtly
Which stage of the product life cycle usually has the most competitors?
Maturity stage
Name one marketing strategy businesses use during the growth stage.
Increase distribution/improve quality/expand advertising
Name two product extension strategies for a breakfast cereal.
New flavor / new packaging / tie-in with movies / health variant
Which BCG category often requires the most investment to become a “Star”?
Question Mark (Problem Child)
Give an example of a movie or show that used product placement effectively.
James Bond and Aston Martin / Stranger Things and Coca-Cola
How does the BCG Matrix help a company decide where to invest money?
Shows which products need support or should be discontinued
Give an example of a product currently in the decline stage and explain why.
E.g., DVD players – replaced by streaming services
Why might a company choose to rebrand a product instead of launching a new one?
Lower cost, existing brand recognition, reduced risk
Give one real-life example of each: Star, Cash Cow, Question Mark, Dog.
Star: iPhone; Cash Cow: Coca-Cola; Question Mark: Apple TV+; Dog: Old MP3 players
Why might companies prefer product placement over traditional advertising?
Feels natural, avoids ad fatigue, links brand to popular culture
You’re a marketing manager for a snack brand in decline. Suggest two ways to extend the product’s life.
New flavor / smaller packaging / eco-friendly version / influencer tie-in