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Questions and Answers
What is a characteristic motivation for INNOVATORS when buying products?
What is a characteristic motivation for INNOVATORS when buying products?
Which color is known for stimulating the interest of people in foods?
Which color is known for stimulating the interest of people in foods?
In the Product Life Cycle, which phase is characterized by high initial prices and targeting innovators?
In the Product Life Cycle, which phase is characterized by high initial prices and targeting innovators?
What is the primary motivation for LEADERS when making purchasing decisions?
What is the primary motivation for LEADERS when making purchasing decisions?
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What tends to happen during the GROWTH phase of the Product Life Cycle?
What tends to happen during the GROWTH phase of the Product Life Cycle?
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What is the role of improving a product according to market demands?
What is the role of improving a product according to market demands?
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What characteristics define a cash cow in product strategy?
What characteristics define a cash cow in product strategy?
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Why is it important to maintain a good connection with constants in a cash cow strategy?
Why is it important to maintain a good connection with constants in a cash cow strategy?
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What impact does consistent branding have on public perception?
What impact does consistent branding have on public perception?
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Which of the following is a suggested approach when transitioning a product from a question mark to a star?
Which of the following is a suggested approach when transitioning a product from a question mark to a star?
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What is a characteristic of a product in the maturity phase?
What is a characteristic of a product in the maturity phase?
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What indicates that a product is labeled as a 'DOG'?
What indicates that a product is labeled as a 'DOG'?
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Which action is suggested for a product that has been identified as a 'DOG'?
Which action is suggested for a product that has been identified as a 'DOG'?
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In the context of maturity and decline stages, what does 'decline' imply for a product?
In the context of maturity and decline stages, what does 'decline' imply for a product?
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What strategy could be employed to capture the market while in the maturity phase?
What strategy could be employed to capture the market while in the maturity phase?
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What is the primary concern for a product's marketability throughout its lifecycle phases?
What is the primary concern for a product's marketability throughout its lifecycle phases?
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Which pricing strategy allows for the price of a product to be set significantly higher than its cost based on perceived value?
Which pricing strategy allows for the price of a product to be set significantly higher than its cost based on perceived value?
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What does the term 'Loss Leader' refer to in pricing strategies?
What does the term 'Loss Leader' refer to in pricing strategies?
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Which of the following statements best describes the difference between 'Mayabang' and 'Mahangin' in the context of brand perception?
Which of the following statements best describes the difference between 'Mayabang' and 'Mahangin' in the context of brand perception?
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What is a crucial factor that decision-makers consider before purchasing a product?
What is a crucial factor that decision-makers consider before purchasing a product?
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What is the retail price if the cost is P10 and the profit margin is 100%?
What is the retail price if the cost is P10 and the profit margin is 100%?
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Which pricing strategy involves observing competitors and adjusting pricing accordingly?
Which pricing strategy involves observing competitors and adjusting pricing accordingly?
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In a cost-plus pricing structure, how is profit defined?
In a cost-plus pricing structure, how is profit defined?
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How does psychological pricing typically affect consumer perception?
How does psychological pricing typically affect consumer perception?
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What distinguishes a loss leader pricing strategy?
What distinguishes a loss leader pricing strategy?
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Which method considers factors such as location and demand when setting price points?
Which method considers factors such as location and demand when setting price points?
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What is the main function of the 'support function' in the value chain analysis?
What is the main function of the 'support function' in the value chain analysis?
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Which of the following is NOT typically considered part of the value chain analysis?
Which of the following is NOT typically considered part of the value chain analysis?
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Study Notes
Psychology of Colors
- Red is stimulating and can catch attention, often used in marketing for food products.
- Blue is associated with comfort.
- Green is associated with energy.
Product Life Cycle (PLC)
- The PLC describes four distinct stages of a product's life: Introduction, Growth, Maturity, and Decline.
- Innovators are early adopters who purchase a product despite limited information. They are motivated by pride and exclusivity.
- The Introduction stage often features high prices due to a product's uniqueness.
- Leaders are influential consumers who purchase a product due to its perceived quality and influence, driven by a need for prestige and respect.
- The Growth stage sees increased sales and profit driven by product improvements and revisions.
- During the Maturity phase, sales level off as the product becomes widely adopted. Efforts shift towards maintaining market share rather than significant growth.
- The Decline phase signifies a decrease in sales and market share. Companies may implement strategies such as price reductions or promotional offers to try and revitalize sales.
Boston Consulting Group Matrix (BCG Matrix)
- Analyzes a product's marketability and sales performance.
- Labels products into four categories: Dog, Question Mark, Star, and Cash Cow.
- The Dog category represents products with low market share and low market growth, often considered candidates for discontinuation.
- The Question Mark category indicates products with low market share but high market growth. These products have the potential to become Stars or Dogs depending on future market performance.
- The Star category represents products with high market share and high market growth, considered ideal products with strong market dominance.
- The Cash Cow category includes products with high market share but low market growth. These products generate stable income and often serve as funding sources for other products.
Branding
- Branding refers to the consistent perception of a product or company formed over time.
- Brand names, such as DLSU, CSB, McDonald's, and Landbank, are examples of established brands representing a specific image and value.
Pricing Strategies
- Cost-Plus Pricing adds a profit margin to the cost of production to determine the retail price.
- Benchmarking Pricing involves analyzing competitors’ pricing strategies and adjusting prices accordingly to gain a competitive edge.
- Psychological Pricing uses "round" numbers or numbers ending in 99, creating a perception of better deals or lower prices.
- Value-Based Pricing sets prices based on perceived value and market demand, potentially justified by a product's unique features or benefits.
- Loss Leader Pricing involves selling a product at a loss to draw customers and potentially increase sales of other products.
Place (Distribution)
- Place refers to the distribution channels through which a product is made available to its target market.
- The Value Chain Analysis examines the different stages involved in a product's journey from raw materials to its final consumer.
Support and Primary Functions in Value Chain
- Support Functions include administrative, human resources, technology, and purchasing activities that contribute to the overall operation of a business.
- Primary Functions directly involve the creation and delivery of a product, including manufacturing, inbound logistics, work in process, finished product, marketing, sales, warehousing, storage, and after-sales services.
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Description
Explore the impact of colors in psychology and their application in marketing. Additionally, learn about the stages of the Product Life Cycle, including Introduction, Growth, Maturity, and Decline. This quiz covers key concepts that influence consumer behavior and market strategies.
