Introduction
What is the primary goal of the introduction stage of the product life cycle?
Create awareness and generate interest in the product
During the growth stage, what happens to sales and profits?
Sales increase rapidly, profits rise.
What happens to sales growth in the maturity stage?
Sales growth slows down.
What typically happens to sales and profits in the decline stage?
Sales and profits decrease.
At the decision point, what are the two primary options companies consider?
Revive or discontinue product.
True or False: In the introduction stage, companies often experience high profits.
false
Why is the growth stage so crucial for marketing?
Because this is when a product could catch on or fail.
Brand equity refers to:
reputation
True or False: Companies should always discontinue products in the decline stage.
false
True or False: A company can reintroduce a product in a new market to extend its life cycle.
true
Name one marketing strategy used during the introduction stage.
Heavy promotion, advertising, or product trials.
Name a common marketing objective during the growth stage.
Increase market share.
True or False: Companies often lower prices to maintain market share during maturity.
True
Name one possible reason why a product enters the decline stage.
Technological advancements, changing consumer preferences.
Name a possible way a company can revive a product.
new promotions/advertisements
a change in price
updated product design
repackaging.
What are two challenges businesses face in the introduction stage?
High marketing costs, low initial sales.
Factors that might prevent new competitors from entering the market, such as equipment costs and government regulations, are called:
Barriers to entry
Why do marketers highlight brand name, reputation, and how long the product has been around?
Brand Equity is high
What rotation day is your test next week? (Day 1, 2, 3, or 4)?
2
What factors should companies think about when deciding whether to revive or discontinue a product?
Market demand
profitability
competition
costs
What does shelf allowance refer to?
The money paid by manufacturers to a retailer in order to get shelf space to stock a new product.
This strategy leads to sales because well-known retailers carry the new product.
PUSH strategy
Because the manufacturer has paid off development costs, profits are high. What do companies use this income for?
generate new products and fund product launches
What is Mrs Rapallo's dog's name?
Charlie
Give an example of a product that was revived successfully after reaching the decision point.
Arm & Hammer Baking Soda, Converse running shoes, Polaroid cameras