Marketing PM 018 Product Life Cycle

The product life cycle refers to the stages a product moves through from the time it enters the market until the time

• it reaches maturity

• its sales growth slows down

• it exits the market

• it produces a profit

Marketers may attempt to increase the number of a product’s users by

• using a price-skimming strategy

• harvesting the product

• liquidating the inventory

• selling the product in a foreign country

Marketers may extend a product’s life cycle by

• raising prices

• finding new uses for it

• applying for an extension with the patent office

• reducing promotion

Which of the following is a true statement about the introduction stage of the product life cycle

• Profits are usually nonexistent

• Costs are low

• Sales growth is exploding

• There is intense competition

Which of the following is a true statement about the growth stage of the product life cycle

• Costs go up

• Competitors arrive on the scene

• It’s the longest-lasting stage of the product life cycle

• Sales increase very slowly

Which of the following marketing strategies is appropriate for the decline stage of the product life cycle

• Selling the product online

• Marketing to early adopters

• Expanding the product line

• Increasing promotion expenditures

During the decline stage, a company may choose to continue offering the product but cut out all promotional expenditures. This is a strategy known as

• price skimming

• harvesting

• liquidating.

• Increasing promotion expenditures

Kevin is standing in line to purchase the latest version of his favorite smartphone. He loves getting the newest technology as soon as it’s available. Kevin is known as a(n)

• product bundler

• price skimmer

• maturity-stage buyer

• early adopter

Which of the following marketing strategies is appropriate for the maturity stage of the product life cycle

• Finding non-traditional distribution channels

• Increasing media advertising

• Increasing prices

• Offering incentives to distributors

A software manufacturer may sell an entire “suite” of software programs for one price during the maturity stage. This is a marketing strategy known as

• bundling

• harvesting

• price skimming

• penetration pricing