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WorksheetsProduct Life-Cycle Marketing Strategies
Total questions: 15
Worksheet time: 4mins
During this stage, sales start to fall. Extension strategies needed to pick up sales again.
Introduction
Growth
Maturity
Decline
Product life cycle shows the different stages that a product passes through and sales that can be expected at each stage
TRUE
FALSE
Actions a business can take to extend the life of a product and increase sales.
Phase out product
Extension Strategies
Cost-cutting
Phase out unprofitable outlets
A possible extension strategy is to invest in advertising. The drawback of this is that...
It may attract new customers
Adverts can be very expensive and do not guarantee increased sales.
The business may not have full control
Adverts are repetitive
Sales rate starts to slow, perhaps a competitor has launched something similar or customers just want something new.
Decline
Development
Maturity
Introduction
Which stage has the least production costs?
Introduction
Growth
Maturity
Decline
Which one of the following is NOT an extension strategy?
Explore new markets
Change the price of a product
Lower production and eventually discontinue the product.
add value
What should a business do in the intro stage?
build up sales
make lots of their product
increase staff numbers
increase customer awareness
What is happening at point C on the Product Life Cycle?
Introduction
Maturity
Growth
Decline
During this stage, the product is launched. Usually a loss is made during this phase as Sales are low (but increasing).
Introduction
Growth
Maturity
Decline
Which stage has rapid sales?
Decline
Maturity
Growth
Introduction
A possible extension strategy is to add value. This means ___?
Increasing the price of the product
Decreasing the price of the product
Add new features to the existing product
None of the above.
Products sales increase profits start to be made. A business may need to increase outlets to reach new markets.
Decline
Growth
Maturity
Introduction
What could a business do in the decline stage?
increase production
use a product extension strategy
remove the product from the market
sack the directors and start again
What is the term used for extending a product life cycle?
Extension strategies
Product Sales
Service expansion
Business Growth
