ch 9 Flashcards
(18 cards)
What is one reason for new product failure?
Overestimation of market size
Other reasons include poor design, incorrect positioning, launched at wrong timing, priced too high, ineffective promotion, management influence despite poor marketing research findings, high development costs, and competition.
What characterizes the Introduction Stage of the Product Life Cycle?
Slow sales growth with no profits
Key features include low sales, high cost per customer, negative profits, innovators as customers, and few competitors.
What is the marketing objective during the Introduction Stage?
Create product awareness and trial
What occurs during the Growth Stage of the Product Life Cycle?
Rapid market acceptance, rising sales, and increasing profits
Characterized by rapidly rising sales, average cost per customer, rising profits, early adopters as customers, and an increasing number of competitors.
What is the marketing objective during the Growth Stage?
Maximize market share
What defines the Maturity Stage of the Product Life Cycle?
Slowdown in sales growth as sales peak
Features include peak sales, low cost per customer, high profits, middle majority as customers, a stable number of competitors beginning to decline.
What is the marketing objective during the Maturity Stage?
Maximize profit while defending market share
What characterizes the Decline Stage of the Product Life Cycle?
Sales fall off and profits drop
Key features include declining sales, low cost per customer, declining profit, laggards as customers, and a declining number of competitors.
What is the marketing objective during the Decline Stage?
Reduce expenditure and milk the brand
Fill in the blank: The Introduction Stage has _______ sales.
Low
Fill in the blank: The Growth Stage features _______ profits.
Rising
Fill in the blank: The Maturity Stage has _______ profits.
High
Fill in the blank: The Decline Stage is characterized by _______ sales.
Declining
List the customer types associated with each stage of the Product Life Cycle.
- Introduction: Innovators
- Growth: Early adopters
- Maturity: Middle majority
- Decline: Laggards
True or False: The number of competitors increases during the Maturity Stage.
False
The number of competitors is stable and begins to decline in the Maturity Stage.
What is the cost per customer during the Introduction Stage?
High
What happens to the cost per customer during the Growth Stage?
Average
What is the cost per customer in the Maturity and Decline stages?
Low
