Chapter 11

Question 1

what are the 4 stages of the product life cycle?

Answer 1

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

Question 2

what is skimming pricing?

Answer 2

high initial price; creates competition; gain quality recognition; high profits

Question 3

what is penetration pricing?

Answer 3

low initial price; discourages competition; lower profits

Question 4

What is harvesting? give an example

Answer 4

retaining a product in the decline stage; reducing marketing costs to none; keep the product for die hard fans; Tag Cola

Question 5

what are the dimensions of the PLC?

Answer 5

1. length
2. shape
3. product level
4. life cycles and consumers

Question 6

define branding. what is the key objective of branding?

Answer 6

activity in which an organization uses a name, phrase, design, symbols, or a combination of these to identify its products and distiguish them from competitors.The key objective is differentiation

Question 7

what is brand equity?

Answer 7

added value that a given brand name gives to a product beyond the functional benefits provided

Question 8

list and describe the 5 branding strategies

Answer 8

1. multiproduct branding
2. multibranding
3. private branding
4. cohort brand management
5. mixed branding