week 13 module

Question 1

is a marketing strategy developed by Raymond vernon in 1966 to help companies plan out the progress of their new products

Answer 1

Product life cycle theory

Question 2

Product life cycle theory– is a marketing strategy developed by Raymond vernon in _______ to help companies plan out the progress of their new products.

Answer 2

1966

Question 3

The theory was developed to explain the pattern of international trade and foreign direct investment.

Answer 3

product life cycle theory

Question 4

This pattern follows the product life cycle. The theory assumed that production of the new product will occur completely in the ____________ of its _______________. Venom explained that from the invention of a product to its demise due to lack of demand, a product goes through
four stages in th product life cycle :
· Introduction
· Growth
· Maturity
· Decline

Answer 4

home country
innovation

Question 5

four stages in the product life cycle:

Answer 5

· Introduction
· Growth
· Maturity
· Decline

Question 6

four stages in th product life cycle :
· Introduction
· Growth
· Maturity
· Decline
The length of each stage can vary from _____________________, with some taking several months and others several years.

Answer 6

product to product

Question 7

four stages in th product life cycle :
· Introduction
· Growth
· Maturity
· Decline
The length of each stage can vary from product to product, with some taking several ________ and others several _________. Many factors go into determining how quickly a product goes through the four stages, including how the product is marketed, the demand for the product, and the product itself.

Answer 7

months
years

Question 8

four stages in th product life cycle :
· Introduction
· Growth
· Maturity
· Decline
The length of each stage can vary from product to product, with some taking several months and others several years. Many factors go into determining how quickly a product goes through the four stages, including how the product is _________, the ___________ for the product, and the__________________.

Answer 8

marketed
demand
product itself

Question 9

is the process of managing a product’s life cycle from inception, through design and manufacturing, to sales, service, and eventually, to retirement.

Answer 9

Product life cycle management (PLM)

Question 10

When a product moves on curve, strategies related to competition,distribution, pricing, promotion, and market intelligence are periodically assessed and modified as needed.

Answer 10

Product life cycle management (PLM)

Question 11

By using the ________________________ marketing managers can ensure that products remain profitable by making profitable products better and making them stay longer in the market. Unprofitable products can be removed from the product portfolio and replaced by a better product.

Answer 11

product life cycle,

Question 12

By using the product life cycle, marketing managers can ensure that products remain ____________ by making profitable products better and making them stay longer in the ___________. ______________ products can be removed from the _____________________and replaced by a better product.

Answer 12

profitable
market
Unprofitable
product portfolio

Question 13

the need is to create awareness, not profits, and the underlying goals is to gain widespread product and brand recognition as consumers try the product.

what stage?

Answer 13

introduction stage

Question 14

the need is to create __________, not _______, and the underlying goals is to gain widespread product and brand recognition as consumers try the product.

what stage?

Answer 14

awareness
profits

introduction stage

Question 15

______ money is spent on ____________ and _________. At the introduction stage, companies can expect ______to be low, but will gradually ___________, and profitability to be ___________.

Answer 15

Big
distribution

promotion
sales

increase
negative

Question 16

Businesses can also expect to have ____________________ during this phase since competitors also do not have knowledge about the product.

what stage?

Answer 16

no direct competition

introduction stage

Question 17

There are two price-setting strategies at this stage:

Answer 17

price skimming
price penetration

Question 18

charging an initially high price and gradually reducing (“skimming”) the price as the market grows.

Answer 18

price skimming

Question 19

charging low price to “penetrate” the market and capture market share, before increasing prices in relation to market growth.

Answer 19

price penetration

Question 20

demand for the product begins to increase and sales usually grows exponentially from the takeoff point. At this stage, profitability reaches the highest level.

Answer 20

growth stage

Question 21

are now in order as sales revenue increases faster than cost and production reaches capacity.

Answer 21

Economies of scale

Question 22

sales increase continues in a decreasing pattern, but the sales curve tends to decrease after the top selling point is reached.

what stage?

Answer 22

maturity stage

Question 23

There is intense competition and product differentiation and generating brand awareness becomes a must.

what stage?

Answer 23

maturity stage

Question 24

Retaining customer brand loyalty is the key. The biggest challenge is maintaining profitability and preventing sales from further decline.

what stage?

Answer 24

maturity stage

Question 25

A product enters the ____________ when no amount of marketing or promotion can keep the sales figures from declining.

Answer 25

decline stage

Question 26

Other innovative or substitute products that satisfy customer needs better have entered the market.

what stage?

Answer 26

decline stage

Question 27

Sale likely continue until the cost to produce the product rises higher than the profits generated from it.

what stage?

Answer 27

decline stage

Question 28

Some of the strategies that can be employed in the decline stage are:

Answer 28

1. milking or harvesting
2. slowly reducing distribution channeks
3. selling the product to a niche operator or subcontractor

Question 29

which means reducing marketing efforts and attempt to maximize the life of the product for as long as possible;

Answer 29

milking or harvesting

Question 30

milking or harvesting, which means reducing marketing efforts and attempt to maximize the life of the product for as long as possible; _____________________________________ and pulling the product from under- performing geographic areas allowing the company to pull the product out and attempt to introduce a replacement product; and
selling the product to a niche operator or subcontractor to allow the company to dispose of a low-profit product, while retaining loyal customers.

Answer 30

slowly reducing distribution channels

Question 31

in decline stage are slowly reducing distribution channels and pulling the product from under- performing geographic areas allowing the company to pull the product out and attempt to introduce a replacement product; and
________________________________________________ to allow the company to dispose of a low-profit product, while retaining loyal customers.

Answer 31

selling the product to a niche operator or subcontractor

Question 32

was forwarded in 1980 by economists Paul Krugman and Kelvin Lancaster.The theory focused on multinational corporations (MNCs) and how they get competitive advantage over other firms in their industry.

Answer 32

Global strategic rivalry theory

Question 33

Firms encounter global competition in their industries and in order to prosper, they must develop competitive advantages.

Answer 33

Global strategic rivalry theory

Question 34

The theory focuses, however, on planned decisions that firms implement as they participate globally. These decisions influence both international trade and international investment.

Answer 34

Global strategic rivalry theory

Question 35

refer to the obstacles a new firm may face when trying to enter into an industry or a new market.

Answer 35

Barriers to entry

Question 36

a. research and development;
b. ownership of intellectual property rights;
c. economies of scale;
d. unique business processes or methods;
e. extensive experience in the industry or exploiting the experience curve; and
f. control of resources or favorable access to raw materials.

are examples of __________________

Answer 36

barriers to entry

Question 37

are activities engaged in by companies for the invention of new products or services to remain competitive. R&D is an important driver of economic growth. Companies have their own R&D departments to be able to actually gain competitive advantage.

Answer 37

Research and development (R&D)

Question 38

refers to creations of the mind, a work or invention that is the result of creativity, such as manuscript (book) or a design, to which one has rights and for which one may apply for a patent, copyright, trademark, brand name, and the like.

Answer 38

intellectual property

Question 39

is an exclusive right granted for a new, inventive, and useful product, process, or technical improvement to an existing invention. ________ may be used for licensing.

Answer 39

patent

Question 40

________________________ is a word, a group of words, sign, symbol, or a logo that distinguishes your business’ goods or services from those of other traders, Brand names and trademarks are used for franchising.

Answer 40

trademark/brand name

Question 41

is the exclusive legal right to reproduce, publish, sell, or distribute the matter and form of something (such as literary, musical, or artistic work).

Answer 41

copy right

Question 42

means a proportionate saving in costs (cost advantage) gained by an increased volume of production.

Answer 42

Economies of scale

Question 43

is a result of spreading the total fixed overhead cost among a greater number of units produced, which, therefore, reduces the unit fixed cost for the product. This also results in a lower average variable cost for the product. Overall, operational efficiencies and synergies are attained.

Answer 43

the cost advantage

Question 44

There are two economies of scale:

Answer 44

International economies of scale
External economies of scale

Question 45

refers to economies that are unique to a firm. For instance, a firm may hold a patent over a mass production machine, which allows it to lower its average cost of production more than other firms in the industry.

Answer 45

International economies of scale

Question 46

refers to economies of scale enjoyed by an entire industry. If studies indicate that cotton production will need 1,000 workers to be able to enter a trade with a foreign country, or those engaged in cotton production will try their best to employ 1,000 workers to become competitively advantaged.

Answer 46

external economies of scale

Question 46

produce competitive advantage over those without experience in any endeavor. Therefore, experience will also count in engaging in international trade as those with experience become conversant with what is going on in the global trade arena. Employing experience employees is equally advantageous for firms.

Answer 46

experience