MCS 1000#Chapter 11 Prep Questions
with Complete Answers.
Product life cycle - Answer the stages a new product goes through in the marketplace
1) introduction
2) growth
3) maturity
4) decline
1) Introduction - Answer when product is first introduced into intended target market
- sales grow slow, profit is minimal as a result of marketing/promotional costs
- pricing and distribution strategies are implemented in this phase
2) Growth - Answer rapid increase in sales, competitor appear and profit peaks
- changes to product occur to differentiate it from competitor's
- must gain as much distribution as possible
3) Maturity - Answer slowing down of industry sales/product class revenue, marginal
competitors leave the market
- sales increase at decreasing rate and profit declines
- consumers either repeated or tried and abandoned product
4) Decline - Answer when sales/profits begin to drop, prevented by tech innovation
Deletion - Answer dropping a product from a company's product line; most drastic strategy
Harvesting - Answer when a company retains a product but reduces marketing support costs
Dimension of product life cycle - Answer 1) length - no exact time span to move through life
cycle; consumer products have shorter life cycles
- decreased by rate of technological advances
2) shape - not all products have same shape to curve
3) product class and form - important to distinguish
4) consumers - life cycle is dependent on consumer sales
- most sales after exposure to the market for some time
, Product class - Answer the product category or industry (ex., video games)
Product form - Answer variations of a product in a product class
5 categories of product adapters - Answer 1) innovators
2) early adapters
3) early majority
4) late majority
5) laggards
Product manager is responsible for: - Answer modifying the product
modifying the market
repositioning the product
Category development index (CDI) and brand development index (BDI) - Answer aids in
identifying strong and weak market segments for specific brands and products
Modifying the product - Answer involves altering a product's characteristics to try and
increase/extend sales
Modifying the market - Answer 1) finding new users - advertising to different customers
2) increasing use - promoting more frequent consumer use
3) create new use situations - finding new uses for an existing product
Repositioning the product - Answer changing the place a product occupies in a consumer's
mind relative to competitive products
Factors that trigger a repositioning action - Answer 1) reacting to competitor's position
2) reaching a new market
3) catch a rising trend
4) change the value offered
Branding - Answer when an organization uses a name, phrase, design, symbols, or
combination of these to identify its products and distinguish them from those of competitors
with Complete Answers.
Product life cycle - Answer the stages a new product goes through in the marketplace
1) introduction
2) growth
3) maturity
4) decline
1) Introduction - Answer when product is first introduced into intended target market
- sales grow slow, profit is minimal as a result of marketing/promotional costs
- pricing and distribution strategies are implemented in this phase
2) Growth - Answer rapid increase in sales, competitor appear and profit peaks
- changes to product occur to differentiate it from competitor's
- must gain as much distribution as possible
3) Maturity - Answer slowing down of industry sales/product class revenue, marginal
competitors leave the market
- sales increase at decreasing rate and profit declines
- consumers either repeated or tried and abandoned product
4) Decline - Answer when sales/profits begin to drop, prevented by tech innovation
Deletion - Answer dropping a product from a company's product line; most drastic strategy
Harvesting - Answer when a company retains a product but reduces marketing support costs
Dimension of product life cycle - Answer 1) length - no exact time span to move through life
cycle; consumer products have shorter life cycles
- decreased by rate of technological advances
2) shape - not all products have same shape to curve
3) product class and form - important to distinguish
4) consumers - life cycle is dependent on consumer sales
- most sales after exposure to the market for some time
, Product class - Answer the product category or industry (ex., video games)
Product form - Answer variations of a product in a product class
5 categories of product adapters - Answer 1) innovators
2) early adapters
3) early majority
4) late majority
5) laggards
Product manager is responsible for: - Answer modifying the product
modifying the market
repositioning the product
Category development index (CDI) and brand development index (BDI) - Answer aids in
identifying strong and weak market segments for specific brands and products
Modifying the product - Answer involves altering a product's characteristics to try and
increase/extend sales
Modifying the market - Answer 1) finding new users - advertising to different customers
2) increasing use - promoting more frequent consumer use
3) create new use situations - finding new uses for an existing product
Repositioning the product - Answer changing the place a product occupies in a consumer's
mind relative to competitive products
Factors that trigger a repositioning action - Answer 1) reacting to competitor's position
2) reaching a new market
3) catch a rising trend
4) change the value offered
Branding - Answer when an organization uses a name, phrase, design, symbols, or
combination of these to identify its products and distinguish them from those of competitors
