PRODMAN CHAPT 2

Question 1

Is the process a product goes through from when it is first introduced into the market until it declines or is removed from the market.

Answer 1

Product Life Cycle

Question 2

To create strategies to sustain their product’s longevity or change it to meet market demand or adapt with/to developing technologies.

Answer 2

PLC Analysis

Question 3

Popular PLC Pricing Strategy

Answer 3

Price Skimming
Price Penetration

Question 4

Is a strategy that involves setting the price of a product high initially, then lowerint it to “skim” additional groups of consumers as the market expands.

Answer 4

Price Skimming

Question 5

Is a strategy that involves setting the initial price of a product low to penetrate the market as quickly as possible. The product’s price is then increased as demand for it grows.

Answer 5

Price Penetration

Question 6

Is the process of purposefully examining a product and making strategic design, pricing, and marketing decisions to optimize the product for each stage of its life cycle.

Answer 6

PLC Analysis

Question 7

4 Stages of Product Life Cycle

Answer 7

Introduction
Growth
Maturity
Decline

Question 8

Product is released into the market for the first time.

Answer 8

Introduction

Question 9

Product is often a high-stakes.

Answer 9

Introduction

Question 10

First able to get a sense of how consumers respond to the product, whether they like it, and how successful it may be.

Answer 10

Introduction

Question 11

Business must establish branding and grab attention.

Answer 11

Introduction

Question 12

Consumers start taking to the product and buying it.

Answer 12

Growth

Question 13

The product concept is proven as it becomes more popular, and sales increase.

Answer 13

Growth

Question 14

Other companies became aware of the product and its space in the market as it begin to draw more attention and pull in more revenue.

Answer 14

Growth

Question 15

Products are often tweaked during this stage to improve their functions and features.

Answer 15

Growth

Question 16

As market expands, more competition often drives prices down to make the specific product competitive.

Answer 16

Growth

Question 17

Sales tend to slow, signaling a large saturated market.

Answer 17

Maturity

Question 18

Product is well establish and both production and marketing costs are reduced for greater profit.

Answer 18

Maturity

Question 19

Saturation is reached and sales volume is maxed out.

Answer 19

Maturity

Question 20

Less successful competitors are often pushed out of competition during this stage.

Answer 20

Maturity

Question 21

Known as the shake-out point

Answer 21

Maturity

Question 22

Targeted at fending off competition, and companies often develop new or altered products to reach different market segments.

Answer 22

Maturity

Question 23

Attempt to keep their product alive in maturity stage as long as possible, eventually its inevitable for every product.

Answer 23

Decline

Question 24

Product sales drop significantly, and consumer behavior changes, as there is less demand for the product. The company’s product loses more and more market share, and competition tends to cause sale to deteriorate.

Answer 24

Decline

Question 25

Product is retired out of the market altogether unless it is able to redesign itself to remain relevant or in-demand.

Answer 25

Decline

Question 26

Is the process of purposefully examining a product and making strategic design, pricing and marketing decisions to optimize the product for each stage of its life cycle.

Answer 26

PLC Analysis

Question 27

By examining their product in relation to the market as a whole, their competitors, sales, and expenses, companies can better decide how to pivot and develop their product for longetivity in the marketplace.

Answer 27

PLC Analysis

Question 28

Examining their products' life cycles whether their product are in the PLC, can help companies determine if they need to develop new products to continue generating sales, especially if the majority of their products are in the maturity or decline stages of it.

Answer 28

PLC Analysis

Question 29

Marketing Strategy used in Introduction Stages

Answer 29

Rapid Skimming Slow Skimming Rapid Penetration Slow Penetration

Question 30

Launching the new product at high price and high promoting level.

Answer 30

Rapid Skimming

Question 31

Launching the new product at high price and low promoting level.

Answer 31

Slow Skimming

Question 32

Launching of product at low price with heavy promotion.

Answer 32

Rapid Penetration

Question 33

Launching the new product at a low price with low level of promotion.

Answer 33

Slow Penetration

Question 34

Marketing Strategy used in Maturity Stage

Answer 34

Market Modification Product Modification

Question 35

Market Modification

Answer 35

- Converting non users - Entering new market segments - Win competitors customers - Redefine target market

Question 36

Product Modification

Answer 36

- Quality improvement - Adopting advance technology - Product Differentiation