Lecture 6 (AI) Flashcards
(37 cards)
What are the four stages of the product lifecycle?
- Introduction
- Growth
- Maturity
- Decline
Each stage has distinct characteristics and requires different marketing strategies.
What characterizes the Introduction stage of the product lifecycle?
Slow sales growth, low or absent profits due to high expenses
This stage involves significant promotional expenditures to inform potential customers.
What occurs during the Growth stage of the product lifecycle?
Rapid rise in sales, more customers purchasing the product, new competitors entering
Prices may remain the same or slightly fall depending on demand.
What happens in the Maturity stage of the product lifecycle?
Sales growth slows down, profits stabilize or decline due to increased competition
This stage often consists of three phases: Growth, Stable, and Decaying Maturity.
What defines the Decline stage of the product lifecycle?
Sales and profits decline due to new technology, changing consumer preferences, and increased competition
Firms may withdraw from the market as carrying a weak product becomes costly.
What is the Pioneer Advantage?
The pioneer brand name is often recalled more easily and establishes product class attributes
It tends to capture more users and create higher brand loyalty.
What are the three phases of the Maturity stage?
- Growth
- Stable
- Decaying Maturity
Each phase presents unique challenges and strategies for maintaining market position.
Fill in the blank: The product lifecycle is typically divided into ______ stages.
[four]
What strategies can firms use to sustain rapid market growth in the Growth stage?
- Improving product quality and adding features
- Adding new models and personalizing options
- Entering new market segments
- Increasing distribution coverage
- Shifting from product-awareness to product-preference advertising
- Lowering prices
These strategies help firms compete effectively as new competitors enter the market.
What is Market Modification in the context of brand management?
Expanding the market for mature brands by increasing the number of users or usage rate per user
This approach can help boost sales volume.
What is Product Modification?
Stimulating sales by modifying market offering attributes and benefits
This includes quality improvement, feature improvement, and style improvement.
What does the Customer-Perceived Value Hierarchy include?
- Core Benefit
- Basic Product
- Expected Product
- Augmented Product
- Potential Product
Each level adds more perceived value to the customer.
What are the characteristics of the Emergence stage in market evolution?
Characterized by latent market conditions and customers having different preferences
This stage precedes the development of an emerging market.
What is the significance of Packaging in product differentiation?
Packaging contributes to the physical appeal and protection of the product, enhancing customer perception
Effective packaging can influence purchasing decisions.
What defines the concept of Product Characteristics?
Anything that can be offered to a market to satisfy a want or need, consisting of various attributes
These attributes can be tangible (like packaging) or intangible (like service).
True or False: Not all products exhibit the regular bell-shaped product lifecycle.
True
What are some strategies for addressing challenges in the Decaying Maturity phase?
- Finding niches
- Reducing prices
- Engaging in sales promotions
- Increasing advertising and promotional activities
- Developing product improvements and line extensions
These strategies help manage declining sales and competition.
What does Conformance Quality refer to?
The extent to which all produced units are identical and meet promised specifications
High conformance quality is crucial for maintaining customer trust.
Fill in the blank: The probability that a product will not malfunction or fail within a specified time period is known as ______.
[Reliability]
What is design in the context of market offerings?
The totality of attributes that offer functional and aesthetic benefits to the customer and the product’s ability to appeal to both cognition and emotion.
What is service differentiation?
Adding service attributes that facilitate customer-perceived value when a market offering cannot be easily differentiated.
What are the key service attributes for service differentiation?
OR, DL, IN, CT, CC, MR, RNS.
- Ordering Ease
- Delivery
- Installation
- Customer Training
- Customer Consulting
- Maintenance/Repair
- Returns
Define packaging in marketing.
All activities of designing and producing the container/presentation pack for a market offering.
What are the key objectives of packaging?
- Identify the brand in an attractive way
- Convey descriptive and persuasive information
- Provide protection to facilitate transportation
- Assist at-home storage
- Aid product consumption
- Be environmentally friendly on disposal
