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| Industry sales are growing, but the rate of growth has slowed dramatically. The number of competitors is increasing and individual firms are spending large sums in order to buy market share from one another. As a result of increased marketing costs, profits are eroding. Which stage of the product life cycle seems to be indicated? |
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| Tarzan dolls, bookbags, sweatshirts and posters seemed to become popular overnight. After about six months, you were able to buy Tarzan products at flea markets and garage sales for less than 25 percent of their original cost. Tarzan-related products exemplify: |
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| The transition of a product into the decline stage of its PLC is most likely a result of: |
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| Introduction of a new, substitute technology. |
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| Which of the following is least likely to contribute to the general increase in profits experienced by products that have entered the growth phase of the PLC? |
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Spending on advertising and other forms of promotion tends to be drastically reduced during this stage.
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| You are the brand manager for Tide (P&G brand) and are considering ways to revive lagging sales. Recognizing that your brand and the product category as a whole are 'mature,' you are examining several strategic options. Which of the following is least likely to be a viable alternative to accomplish your sales goals? |
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| Products like Campbell's soups have been around for decades. Now Campbell spends much of its advertising dollars on publishing recipes that use Campbell's soups as one of their main ingredients. This strategy suggests that Campbell's soup is in the _____ stage of its product life cycle. |
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| Campbell s recently ran a series of ads on TV in which a variety of new recipes for its soups were featured. This strategy generally is employed for products that are at the ______ stages of the PLC. |
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| The company that is the first to introduce a new type of product to market often achieves a: |
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| When video games were first introduced, they were played on 16-bit game computers. As soon as the 32-bit machines were introduced, sales for the 16-bit games and players quickly fell. The 16-bit product category entered the _____ stage of its product life cycle. |
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| Brand product life cycles generally are more erratic in shape and duration than are product category life cycles because |
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Marketing managers are continually adjusting their marketing programs for brands as market and environmental conditions change
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| As described by the product life cycle, the profit curve for most new products: |
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Definition
Is negative through most (perhaps all) of the introductory stage of the product life cycle
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| Cappio was the first canned ready-to-drink coffee on the market. It had to create the demand for the product category. As soon as demand for the product was shown to exist, Coke and Pepsi began promoting their own brands of canned, ready-to-drink coffee. During which stage of the product life cycle would you expect to see such activity occurring? |
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| During the introductory stage of a product's life cycle: |
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All of the above are true.
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| In terms of the product life cycle, the soft-drink market is basically a mature market. There are still many profitable small regional soft drinks, such as Big Red, Cheerwine, and Vernors. What type of product strategy would you expect these small bottlers to use? |
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| Like many characters created for commercials, the chihuahua in the Taco Bell commercials has appeared on T-shirts, caps, cups, and posters--some licensed, many not. Soon some other commercials will capture the attention of the American consumer, and some other character(s) will appear on T-shirts, caps, cups, and posters. These commercial-derived products are examples of |
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| Dial Company introduced liquid soap in 1988. Today competition in the industry is intense. The manufacturers of liquid soap are adopting a defensive positioning strategy and intensive product distribution. Their promotions appeal to brand loyalty. From this information, you know that liquid soap is in the _____ stage of its product life cycle. |
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| Which of the following is an unlikely management strategy to use for a product in the decline stage of its product life cycle? |
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Increase the depth of the product line by adding new line extensions or flanker brands.
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| With respect to the PLC, the x-axis most closely represents: |
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| During the _____ stage of the product life cycle, both sales and profits rise, numerous competitors enter the market, and sellers use promotional programs to stimulate demand for their brands. |
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