CH8

Question 1

product life cycle

Answer 1

describes the stages that a new product goes through

Question 2

stages of a product life cycle

Answer 2

1. introduction
2. growth
3. maturity
4. decline

Question 3

introduction stage

Answer 3

sales grow slowly and profit is minimal

marketers should create customer awareness and let customers try the product

Question 4

growth stage

Answer 4

characterized by increased competition and a rapid increase in sales
focus on brand/product differentiation

Question 5

maturity stage

Answer 5

slow-down in the growth rate and an increased focus on price competition to differentiate products in the market
focus on price and distribution

Question 6

decline stage

Answer 6

category sales begin to decline and many competitors fall out of the market
use discounts

Question 7

new product development process

Answer 7

1. set a strategy
2. brainstorm ideas
3. screen the ideas
4. business analysis
5. develop the product
6. sell the product on a limited basis to determine potential success
7. launch the product