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In which of the following stages of the product life cycle do sales increase at a progressively faster rate as more people learn about the product and it becomes readily available?
_____ is designed to obtain as much margin per unit as possible and also enables the company to recover its new product investments more quickly.
Which of the following is true of the introductory stage in a product life cycle?
Which of the following pricing strategies is appropriate during the maturity stage of the product life cycle?
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Identify the appropriate response by a firm when its product line is in the mature life cycle stage.
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The shakeout stage in a product life cycle is signaled by:
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New-to-the-world products can be defined as:
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Which of the following refers to products that supplement a firm's established product line?
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Which of the following observations best describes new-to-the-world products?
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Which of the following is an appropriate strategic objective for repositionings?
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Defending a current market-share position is an appropriate strategic objective for:
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The pioneer's brand can become the standard of reference customers use to evaluate other brands, making it more difficult for followers to convince existing customers that their new brands are superior to the older and more familiar pioneer. Which advantage of being a pioneer does this explain?
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Which of the following advantages of pioneers is particularly pronounced when the product is technically sophisticated and involves high development costs?
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Pioneers that are able to maintain their preeminent position well into the market's growth stage have supported their early status with one or more marketing strategy elements. Identify the strategy that allows firms to expand their volumes quickly and achieve the benefits of experience-curve effects before major competitors can confront them.
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Which of the following elements belongs to the successful late entrants' market strategy?
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Identify the firm characteristic of a new product pioneer pursuing the mass-market penetration strategy.
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Which of the following is a primary objective of mass-market penetration strategies?
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Which of the following marketing programs is used by pioneers as a niche penetration strategy to increase the customers' ability to buy?
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_____ is the simplest way to enter a foreign market because it involves the least commitment and risk.
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_____ grants the right to use the company's name, trademarks, and technology.
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_____ involves a company providing technical know-how and components in return for a share of the output that it must sell.
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Study Notes
Market-Oriented Perspectives
- Market-oriented perspectives are essential for successful corporate, business, and marketing strategies.
Product Life Cycle
- Sales increase at a progressively faster rate during the Growth Stage as more people learn about the product and it becomes readily available.
- Skimming is a pricing strategy designed to obtain as much margin per unit as possible and enable the company to recover its new product investments more quickly.
- During the Introductory Stage, skimming is one of the pricing strategies applied, and the net adoption rate holds steady.
- In the Maturity Stage, a suitable pricing strategy is to Hold or Reduce Selectively, and the appropriate response by a firm is to Hold Length of Line.
- The Shakeout Stage is signaled by a drop in the overall growth rate and substantial price cuts.
New Market Entries
- New-to-the-world products can be defined as true innovations that are new to the firm and create an entirely new market.
- Additions to existing product lines refer to products that supplement a firm's established product line.
- Repositioning involves creating primary demand by building product awareness.
Pioneer's Advantage
- The pioneer's brand can become the standard of reference customers use to evaluate other brands, making it more difficult for followers to convince existing customers that their new brands are superior to the older and more familiar pioneer.
- The pioneer's advantage is particularly pronounced when the product is technically sophisticated and involves high development costs, allowing for Economies of Scale and Experience.
Market Strategy
- Large Entry Scale allows firms to expand their volumes quickly and achieve the benefits of experience-curve effects before major competitors can confront them.
- Leapfrogging the pioneer with superior product technology is an attribute of successful late entrants' market strategy.
- Mass-market penetration strategies focus on maximizing the number of triers and adopters in the total market.
- Niche penetration strategies use marketing programs to increase customers' ability to buy, such as offering free trials or extended warranty policies to reduce target customers' perceived risk.
Foreign Market Entry
- Exporting is the simplest way to enter a foreign market, involving the least commitment and risk.
- Franchising grants the right to use the company's name, trademarks, and technology.
- Coproduction involves a company providing technical know-how and components in return for a share of the output that it must sell.
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Description
This quiz covers market-oriented perspectives and strategies for successful corporations, businesses, and marketing. It includes marketing strategies for new market entries and product lines.
