3.4d Product Life Cycle Flashcards
1
Q
The product life cycle is short if
A
- Rate of technological change is rapid
- Product is a fashion item
- It is badly marketed
2
Q
What can product life cycle be used for?
A
- Forecast future behaviour of sales
- Assist marketing strategies
- Identify deviations from the norm
3
Q
Stages of product life cycle
A
- Development
- Introduction
- Growth
- Maturity
- Decline
4
Q
What does the development stage involve?
A
- Research and development
- Market research
- Test marketing
5
Q
Is a loss or profit made in development?
A
Loss
6
Q
In what stage of the product life cycle is product and customer loyalty established?
A
Maturity stage
7
Q
Different extension strategies
A
- Modify product
- Change promotion
- Change price
8
Q
Strategies for decline stage
A
- Maintain market share
- Spend little on promotion
- Weed out product variations
- Price cut
9
Q
Product portfolio definition
A
Mix of products produced by a single firm
10
Q
Balanced portfolio definition
A
Portfolio in which the firm has a variety of products at different stages in the product life cycle
11
Q
Criticisms of product life cycle
A
- Shape and duration of cycle varies
- Difficult to recognise exactly where product is in life cycle
