MKTG 400 Exam questions and
answers well graded A+
Product life cycle - ANS✅✅describes the stages a new product goes through in the marketplace:
introduction, growth, maturity, and decline
Introduction stage (stage 1) - ANS✅✅•Stimulate trial.
•Create primary demand for product class.
•Create selective demand for specific brand.
•Skimming strategy with high initial price.
•Penetration pricing with low price.
•PROFIT STARTS AT A NEGATIVE
Growth stage (stage 2) - ANS✅✅•RAPID SALES GROWTH
•More competitors enter market.
•PROFITS PEAK
•Advertising for selective demand.
•Repeat purchasers.
•Add new features.
•Broaden distribution.
Maturity stage (stage 3) - ANS✅✅•Industry sales and product sales slow.
•Fewer new buyers - most are repeat customers.
•Profit declines due to fierce competition for buyers.
•Product differentiation.
•SALES PEAK IN THIS STAGE
•Marginal competitors leave the market.
•Examples: Soft drinks, breakfast cereals.
Decline stage (stage 4) - ANS✅✅•Industry sales and product sales drop.
•Price decreases.
, •Environmental changes cause disruption.
deletion - ANS✅✅Products dropped from product line
harvesting - ANS✅✅Retain product but reduce marketing costs
Skimming Pricing - ANS✅✅High initial price
Penetration Pricing - ANS✅✅Low initial pricing
Fashion Product - ANS✅✅a product that comes in and out of favor with consumers. Style at the
time
Fad Product - ANS✅✅a product that is very popular for a relatively short amount of time. Ex.
Fidget Spinners
Product class - ANS✅✅•The entire product category or industry.
•Ex: Prerecorded music.
Product form - ANS✅✅•Variations of a product within the product class.
•Ex: Cassettes, CDs, music streaming.
Innovators - ANS✅✅venturesome, higher educated, use multiple information sources
Product/brand manager - ANS✅✅Manage product life cycle. Develop new products. Implement
marketing programs. Analyze data
Product modification - ANS✅✅involves altering one or more of a product's characteristics, such as
its quality, performance, or appearance, to increase the product's value to customers and increase
sales.
•Product bundling.
•New characteristics.
answers well graded A+
Product life cycle - ANS✅✅describes the stages a new product goes through in the marketplace:
introduction, growth, maturity, and decline
Introduction stage (stage 1) - ANS✅✅•Stimulate trial.
•Create primary demand for product class.
•Create selective demand for specific brand.
•Skimming strategy with high initial price.
•Penetration pricing with low price.
•PROFIT STARTS AT A NEGATIVE
Growth stage (stage 2) - ANS✅✅•RAPID SALES GROWTH
•More competitors enter market.
•PROFITS PEAK
•Advertising for selective demand.
•Repeat purchasers.
•Add new features.
•Broaden distribution.
Maturity stage (stage 3) - ANS✅✅•Industry sales and product sales slow.
•Fewer new buyers - most are repeat customers.
•Profit declines due to fierce competition for buyers.
•Product differentiation.
•SALES PEAK IN THIS STAGE
•Marginal competitors leave the market.
•Examples: Soft drinks, breakfast cereals.
Decline stage (stage 4) - ANS✅✅•Industry sales and product sales drop.
•Price decreases.
, •Environmental changes cause disruption.
deletion - ANS✅✅Products dropped from product line
harvesting - ANS✅✅Retain product but reduce marketing costs
Skimming Pricing - ANS✅✅High initial price
Penetration Pricing - ANS✅✅Low initial pricing
Fashion Product - ANS✅✅a product that comes in and out of favor with consumers. Style at the
time
Fad Product - ANS✅✅a product that is very popular for a relatively short amount of time. Ex.
Fidget Spinners
Product class - ANS✅✅•The entire product category or industry.
•Ex: Prerecorded music.
Product form - ANS✅✅•Variations of a product within the product class.
•Ex: Cassettes, CDs, music streaming.
Innovators - ANS✅✅venturesome, higher educated, use multiple information sources
Product/brand manager - ANS✅✅Manage product life cycle. Develop new products. Implement
marketing programs. Analyze data
Product modification - ANS✅✅involves altering one or more of a product's characteristics, such as
its quality, performance, or appearance, to increase the product's value to customers and increase
sales.
•Product bundling.
•New characteristics.
