Marketing Strategy

Question 1

What does the product life cycle include

Answer 1

Development, Introduction, Growth, Maturity and Decline

Question 2

What is in development

Answer 2

marketing department does market research
high failure rate as there isn’t enough demand so business cant make the product cheap enough to make a profit

Question 3

Whats in introduction

Answer 3

product launched in one market or several
often promote the product heavily to get sales

Question 4

Whats in Growth

Answer 4

• new customers and repeated customer
• competitors may be attracted to the market
• product often improved or developed

Question 5

Whats in Maturity

Answer 5

• sales reach a peak and profitability increased because fixed costs of development have been payed for

Question 6

Whats in Decline

Answer 6

• Product doesnt appeal to anyone anymore
• sales fall and profits decrease

Question 7

Stars

Answer 7

• High market growth and high market share
• they are future cash cows
• will need to spend a lot on promoting their product to keep their market share

Question 8

Question marks (problem child)

Answer 8

• Low market share and high market growth
• arent profitable yet and could succeed or fail
• heavy marketing so need a chance

Question 9

Cash cow

Answer 9

• High market share but low market growth
• they are in maturity phase
• already been promoted and produced in high volumes so costs are low
• Bring in plenty of money

Question 10

Dogs

Answer 10

-Low market share and low market growth
- lost cause
- business will harvest profit in short term
- can be sold off if not making enough profit to keep going