Questions and Answers
What strategic actions are typically taken to maintain growth during the growth stage of the product life cycle?
Adding features, enhancing communication, and expanding distribution channels
How might a company differentiate its product from competitors during the growth stage?
By adding features and support services to the product
What is the impact of competition on a company's marketing strategy during the growth stage?
Competition increases, requiring companies to adapt their marketing mix
How might a company's distribution strategy change during the growth stage?
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What is the primary focus of a company's marketing strategy during the growth stage?
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Which marketing strategy is typically implemented when a product is in the decline stage of its life cycle?
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What type of new product development is best suited for a business looking to enter an established market with a product not previously offered?
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Which type of new product development involves significant modifications to existing products?
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What is the most effective way to rejuvenate a product in the decline stage of its life cycle?
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Which type of new product development involves introducing a product that creates an entirely new product category?
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What is the primary goal of marketing strategies implemented during the decline stage of a product's life cycle?
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What are the two primary reasons for declining growth in sales during the maturity stage of the product life cycle?
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What changes to the marketing strategy should an organization make during the maturity stage of the product life cycle to maintain profits?
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What is the purpose of advertising during the maturity stage of the product life cycle?
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What alternative types of promotions can an organization use to maintain sales during the maturity stage of the product life cycle?
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How does product differentiation help an organization maintain its market share during the maturity stage of the product life cycle?
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What is the primary goal of intensifying distribution during the maturity stage of the product life cycle?
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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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