Product Life Cycle in Marketing

The video tutorial explains the product life cycle stages, using Coca-Cola and Apple's iPhone as examples. It covers the research and development, introduction, growth, maturity, and decline stages, highlighting strategies businesses can use to manage each phase. The video also discusses product extension strategies to prolong a product's life cycle, with Coca-Cola's line and brand extensions as examples. The iPhone's life cycle is analyzed, showing its growth and maturity stages. Finally, the video outlines the advantages and limitations of the product life cycle model for business decision-making.

What is the primary purpose of understanding the product life cycle in marketing?

• To determine the best time to discontinue a product

• To reduce the number of competitors

• To increase production costs

• To forecast sales trends and adapt strategies

During which stage of the product life cycle is cash flow typically negative due to high marketing and promotion costs?

• Growth

• Introduction

• Maturity

• Research and Development

What is a common pricing strategy used during the introduction stage to attract early adopters?

• Price skimming

• Discount pricing

• Cost-plus pricing

• Competitive pricing

At which stage do competitors typically enter the market with similar products?

• Research and Development

• Introduction

• Growth

• Maturity

What is a key characteristic of the maturity stage in the product life cycle?

• Rapid increase in sales

• High marketing costs

• High competition and stagnating demand

• Negative cash flow

Which stage is characterized by a decrease in sales and market oversaturation?

• Maturity

• Growth

• Introduction

• Decline

What is a line extension strategy?

• Introducing a new product in a different market

• Creating variations of an existing product

• Adding new features to an existing product

• Reducing the price of an existing product

Which product extension strategy involves using an existing brand to enter a new market?

• New packaging

• Brand extension

• Price reduction

• Line extension

When was the iPhone first introduced to the market?

• 2011

• 2009

• 2007

• 2005

What is a limitation of the product life cycle model?

• It is only a prediction and not always accurate

• All products follow the same life cycle stages

• It is an exact science

• It guarantees increased sales