Marketing Product Life Cycle

Which phase of the Product life cycle is a downward turn in sales leading to the demise of a product.

• Introduction
• Growth
• Maturity
• Decline

Why might profits sometimes decline for the company that first introduced the product during the growth stage of a product's life cycle?

• Because sales decline in the growth stage
• Because marketing strategies are adjusted
• Because competitors have entered the market
• Because production is more efficient

Which of the following is a way that a business can extend the life cycle of an established product?

• promoting the product to current users
• finding new uses for the product
• restricting distribution
• attracting customers who are innovators

Five years after a new product has been introduced, sales begin to level off because customers are purchasingthe competitor's brand. What strategy would be most appropriate to use in this situation?

• take the product off the market
• do nothing, fluctuations in sales are common
• modify or update the product to renew customer interest
• triple the advertising budget for the product

Which stage has rapid sales?

• introduction

• maturity

• decline

• growth

Which stage has lots of competitors?

• growth

• maturity

• introduction

• decline

What is a product extension?

• longer production time

• products with extension features

• strategies to keep the product from declining

• products that keep going through the different stages

Which stage requires lots of advertising?

• introduction

• growth

• maturity

• decline

Which stage has the least production costs?

• introduction

• maturity

• decline

• growth

What could a business do in the decline stage?

• remove the product from the market

• use a product extension strategy

• increase production

• sack the directors and start again