Product Decline Stage Strategies

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Questions and Answers

What strategic actions are typically taken to maintain growth during the growth stage of the product life cycle?

Increasing product prices and focusing on a niche market

Adding features, enhancing communication, and expanding distribution channels (correct)

Discontinuing unprofitable products and focusing on short-term gains

Reducing the marketing budget and limiting distribution channels

How might a company differentiate its product from competitors during the growth stage?

By decreasing the budget for marketing and advertising

By limiting the distribution channels to increase exclusivity

By adding features and support services to the product (correct)

By reducing the price to undercut competitors

What is the impact of competition on a company's marketing strategy during the growth stage?

Competition remains stable, so marketing strategies stay the same

Competition becomes irrelevant during the growth stage

Competition increases, requiring companies to adapt their marketing mix (correct)

Competition decreases, allowing companies to reduce their marketing efforts

How might a company's distribution strategy change during the growth stage?

From selective to more intensive distribution Signup and view all the answers

What is the primary focus of a company's marketing strategy during the growth stage?

Increasing sales and market share Signup and view all the answers

Which marketing strategy is typically implemented when a product is in the decline stage of its life cycle?

Reducing expenditure on advertising and other product-related expenses Signup and view all the answers

What type of new product development is best suited for a business looking to enter an established market with a product not previously offered?

New Product Lines Signup and view all the answers

Which type of new product development involves significant modifications to existing products?

Improvements and revisions of existing products Signup and view all the answers

What is the most effective way to rejuvenate a product in the decline stage of its life cycle?

Adding new features and alternative uses Signup and view all the answers

Which type of new product development involves introducing a product that creates an entirely new product category?

New-to-the-World products Signup and view all the answers

What is the primary goal of marketing strategies implemented during the decline stage of a product's life cycle?

Maximizing profits Signup and view all the answers

What are the two primary reasons for declining growth in sales during the maturity stage of the product life cycle?

Market saturation and increased competition Signup and view all the answers

What changes to the marketing strategy should an organization make during the maturity stage of the product life cycle to maintain profits?

Add new features, intensify distribution, and focus advertising on product benefits Signup and view all the answers

What is the purpose of advertising during the maturity stage of the product life cycle?

To remind existing customers of the product's benefits Signup and view all the answers

What alternative types of promotions can an organization use to maintain sales during the maturity stage of the product life cycle?

All of the above Signup and view all the answers

How does product differentiation help an organization maintain its market share during the maturity stage of the product life cycle?

By adding new features to the product Signup and view all the answers

What is the primary goal of intensifying distribution during the maturity stage of the product life cycle?

To reach new potential customers Signup and view all the answers

Study Notes

Product Life Cycle

Growth Stage

Sales increase rapidly and profits rise
Competition increases, requiring adaptations to the marketing mix to:
- Add features and support services to differentiate the product
- Increase marketing communication through advertising
- Change distribution strategy to increase channels and reach more customers

Decline Stage

Sales and profits decrease
Marketing strategies to:
- Rejuvenate the product by adding new features and uses
- Reduce expenditures to maintain or maximize profits
- Minimize advertising spending to generate some profit

New Product Development

Types of new products:
- New-to-the-World products
- New Product Lines
- Additions to existing product lines or line extensions
- Improvements and revisions of existing products
- Repositioned Products

Maturity Stage

Sales growth slows down
Reasons for declining growth:
- Market saturation
- Increased competition from new products
Marketing strategies to maintain profits:
- Add new features to differentiate the product
- Intensify distribution to reach remaining potential customers
- Shift advertising focus from informing to reminding existing customers of benefits
- Use alternative promotions with incentives to maintain sales

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Description

Learn about the decline stage of the product life cycle and the strategies organizations can implement to address declining sales. Explore methods like adding new features, exploring alternative uses, and reducing expenditures.