BA 303 ACTUAL EXAMS SCRIPT ALL QUESTIONS
AND ANSWERS SURE A+
✔✔Product Life Cycle Theory - ✔✔- Serves as a reminder that the development and
introduction of a new product is vital to the long-term success of most businesses
1. Introduction
2. Growth
3. Maturity
4. Decline
✔✔Introduction - ✔✔- Full-scale commercialization of a product
- High marketing and production costs
- Length of time in this stage can vary
- Product not profitable. No sales before this. Limited distribution.
- Most consumer goods die
- Little competition
, - Frequent product modification
- Promotion focuses on awareness and information
**Communication challenge is to stimulate demand
✔✔Growth - ✔✔- If a product makes it through the introduction phase, it is profitable
- Sales grow at an increasing rate. Demand > Supply
- Profit margins reach their peak at the end of this stage
- Entrance of competitors
- Market consolidation
- Aggressive advertising of the differences between brands
- Wider distribution
✔✔Maturity - ✔✔- Rate of sales growth eventually levels out or decreases.
- TOTAL SALES PEAK and the market reaches saturation
- This often results in price incentives and lower margins
- Typically the longest stage
- Annual models appear
- Lengthened product lines
- Service and repair assume important roles
- Heavy promotions to consumers and dealers
- Marginal competitors drop out
- Niche marketers emerge
- Peak of sales, but industry profits are no longer at their peak
✔✔Decline - ✔✔- Sales volumes quickly decrease as customers lose their desire for the
product. Can happen very quickly or slowly. Product may still be profitable for a while.
Eventually, it will be discontinued or harvested for whatever profit is left.
AND ANSWERS SURE A+
✔✔Product Life Cycle Theory - ✔✔- Serves as a reminder that the development and
introduction of a new product is vital to the long-term success of most businesses
1. Introduction
2. Growth
3. Maturity
4. Decline
✔✔Introduction - ✔✔- Full-scale commercialization of a product
- High marketing and production costs
- Length of time in this stage can vary
- Product not profitable. No sales before this. Limited distribution.
- Most consumer goods die
- Little competition
, - Frequent product modification
- Promotion focuses on awareness and information
**Communication challenge is to stimulate demand
✔✔Growth - ✔✔- If a product makes it through the introduction phase, it is profitable
- Sales grow at an increasing rate. Demand > Supply
- Profit margins reach their peak at the end of this stage
- Entrance of competitors
- Market consolidation
- Aggressive advertising of the differences between brands
- Wider distribution
✔✔Maturity - ✔✔- Rate of sales growth eventually levels out or decreases.
- TOTAL SALES PEAK and the market reaches saturation
- This often results in price incentives and lower margins
- Typically the longest stage
- Annual models appear
- Lengthened product lines
- Service and repair assume important roles
- Heavy promotions to consumers and dealers
- Marginal competitors drop out
- Niche marketers emerge
- Peak of sales, but industry profits are no longer at their peak
✔✔Decline - ✔✔- Sales volumes quickly decrease as customers lose their desire for the
product. Can happen very quickly or slowly. Product may still be profitable for a while.
Eventually, it will be discontinued or harvested for whatever profit is left.
