Product Life Cycle and Marketing Strategies: Understanding the Stages and Tactics, Quizzes of Principles of Marketing

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TERM 1 product life cycle DEFINITION 1 the process a new product goes through in the marketplace introduction, growth, maturity and decline TERM 2 introduction state DEFINITION 2 when a product is intro. to intended target market sales grow slowly and profit is minimal marketing objective: to create customer awareness and stimulate trial- the inital purchase of a product by a consumer. ad and promo are done to stimulate primary demand then after create a slecetive demand which is more focused on the brand gaining distribuition is a challenge high initial price= skimming to help recover from the costs of investment low= penetration pricing ex: gillette TERM 3 growth stage DEFINITION 3 increase in sales competitors appear profit usually peaks in this stage product sales in the growth stage grow at increasing rate because of new people trying or using the product and a growing proportion of repeat purchasers its important to gain as much distribution for the product as possible -need to improved or add new features to product EX: smartphones, digital cameras TERM 4 Maturity Stage DEFINITION 4 slowing of sales marginal competitors begin to leave repeat purchasers (who buys the product in this stage) sales increase at a decreasing rate as fewer buyers enter market profit declines due to fierce price competition among many sellers and the cost of gaining new buyers at this stage marketing attention: hold consumers Ex: soft drinks, DVD players TERM 5 decline stage DEFINITION 5 occurs when sales drop -enters this stage not because of wrongdoing but because enviromental changes - tend to consume a disproportionate share of management and financial resources relative to their future worth. strategy: deletion or harvesting TERM 6 deletion DEFINITION 6 dropping the product from compants product line (most drastic) TERM 7 harvesting DEFINITION 7 a company retains the product but reduces marketing costs. money not spent on the product EX: coke still sells TERM 8 lenght of the product life cycle DEFINITION 8 consumer porducts have less life and business products technolgy changes short lifes cycles TERM 9 high learning product DEFINITION 9 education is required and there is an extended introduction pd EX; personal computers, ovens TERM 10 low learning products DEFINITION 10 sales start asap bc little learning needed benefits of product are understood easily imitated by competitors -market strategy is to broaden distribution quickly -important to have manufacturing capacity to meet demand TERM 21 brand name DEFINITION 21 is any world, device, or combination of these used to distinguish a sellers goods or services (design, sound, shape or color) TERM 22 barriers to diffusion DEFINITION 22 -usage barriers (the product is not compatible with existing habits)-value barriers (the product provides no incentive to change)-risk barriers (physical, economic, or social)psychological (cultural differences or image)they overcome these by money back guaratees, free samples TERM 23 BRAND NAME DEFINITION 23 any word, device or combination used to distinguish a sellers goods or servicessome brands cant be spoken like colored apple TERM 24 Private branding strategy DEFINITION 24 aka private labeling or reseller brandingwhen manufactures products but sells them uner the brand name of a wholesaler or retailer.EX: harris teeter TERM 25 mixed branding strategy DEFINITION 25 where a firm markets products under its own names and the of reseller because the segment attested to the reseller is different from its own market TERM 26 packaging DEFINITION 26 component of a product refers to any container in which it is offered for sale and on which label information is conveyed. TERM 27 label DEFINITION 27 integral part of the package and typically identifies the product or brand , who made it, where and when it was made how it is to be used, and package contents and ingredients TERM 28 communication benefits DEFINITION 28 *communication benefits- label information on it conveyed to the consumer - recipes*functional benefits- TERM 29 functional benefits DEFINITION 29 such as storage, convenience, protection or product qualitystorage- designed to fit refrigeratorconvenience- heinz ketchupprotection- tamper resistantproduct quality- pringles can TERM 30 perceptual benefits DEFINITION 30 whats created in consumers mind TERM 31 challenges for packaging and labeling DEFINITION 31 connecting with customers- creating aesthetic and functional design features that attract customer attention and deliver customer calue in their use-enivormental concerns-health, satefy, and security issues-cost reduction TERM 32 warranty DEFINITION 32 a statement indicating the liabilit of the manufacturer for product deficiencies TERM 33 express warranties DEFINITION 33 written statements of liabilities TERM 34 limited coverage warranty DEFINITION 34 specifically states the bounds of coverage and more important areas of nonocoverage TERM 35 implied warranties DEFINITION 35 assign responsibility for product deficiencies to the manufactuer.