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Product Life-Cycle Marketing Strategies

Total questions: 15

Worksheet time: 4mins

Name
Class
Date
1.

During this stage, sales start to fall. Extension strategies needed to pick up sales again.

a)

Introduction

b)

Growth

c)

Maturity

d)

Decline

2.

Product life cycle shows the different stages that a product passes through and sales that can be expected at each stage

a)

TRUE

b)

FALSE

3.

Actions a business can take to extend the life of a product and increase sales.

a)

Phase out product

b)

Extension Strategies

c)

Cost-cutting

d)

Phase out unprofitable outlets

4.

A possible extension strategy is to invest in advertising. The drawback of this is that...

a)

It may attract new customers

b)

Adverts can be very expensive and do not guarantee increased sales.

c)

The business may not have full control

d)

Adverts are repetitive

5.

Sales rate starts to slow, perhaps a competitor has launched something similar or customers just want something new.

a)

Decline

b)

Development

c)

Maturity

d)

Introduction

6.

Which stage has the least production costs?

a)

Introduction

b)

Growth

c)

Maturity

d)

Decline

7.

Which one of the following is NOT an extension strategy?

a)

Explore new markets

b)

Change the price of a product

c)

Lower production and eventually discontinue the product.

d)

add value

8.

What should a business do in the intro stage?

a)

build up sales

b)

make lots of their product

c)

increase staff numbers

d)

increase customer awareness

9.

What is happening at point C on the Product Life Cycle?

a)

Introduction

b)

Maturity

c)

Growth

d)

Decline

10.

During this stage, the product is launched. Usually a loss is made during this phase as Sales are low (but increasing).

a)

Introduction

b)

Growth

c)

Maturity

d)

Decline

11.

Which stage has rapid sales?

a)

Decline

b)

Maturity

c)

Growth

d)

Introduction

12.

A possible extension strategy is to add value. This means ___?

a)

Increasing the price of the product

b)

Decreasing the price of the product

c)

Add new features to the existing product

d)

None of the above.

13.

Products sales increase profits start to be made. A business may need to increase outlets to reach new markets.

a)

Decline

b)

Growth

c)

Maturity

d)

Introduction

14.

What could a business do in the decline stage?

a)

increase production

b)

use a product extension strategy

c)

remove the product from the market

d)

sack the directors and start again

15.

What is the term used for extending a product life cycle?

a)

Extension strategies

b)

Product Sales

c)

Service expansion

d)

Business Growth