Solution Manual for MKTG CHAPTER 11 100% Pass

Solution Manual for MKTG CHAPTER 11 100% Pass product life cycle - Answers This describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline introductory phase - Answers This stage of the Product Life Cycle occurs when a product is introduced to its intended target market. During this period, sales grow slowly, and profit is minimal. The lack of profit is often the result of large investment costs in product development introductory phase - Answers The first stage of the Product Life Cycle introductory phase - Answers This stage of the Product life Cycle has: - little competition - one product - skimming or penetration pricing - limited place distribution - informative promotion skimming strategy - Answers This pricing strategy involves pricing the product high to help the company recover the costs of development as well as capitalize on the price insensitivity of early buyers penetration pricing - Answers This pricing strategy involves pricing the product low; trying to get as many people as possible to buy the product ; this pricing strategy helps build unit volume, but a company must closely monitor costs Growth Phase - Answers This phase of the Product Life Cycle is characterized by rapid increases in sales. It is this stage that competitors appear, and results in more aggressive pricing and profit peaking growth phase - Answers The second phase of the Product Life Cycle growth phase - Answers This phase of the Product Life Cycle has: - more competitors - more versions of a product - gain market share - more outlets - stress points of difference maturity phase - Answers This phase of the Product Life Cycle is characterized by a slowing of total industry sales or product class revenue. Also, the marginal competitors begin to leave the market. Sales increase at a decreasing rate in this stage as fewer buyers enter the market. maturity phase - Answers This phase of the Product Life Cycle has: -many competitors -full product line -defend market share, profit -maximum outlets - reminder oriented promotion maturity phase - Answers The third phase of the Product Life Cycle decline phase - Answers this stage of the Product Life Cycle occurs when sales drop. Products in this stage tend to consume a disproportionate share of management and financial resources relative to their future worth decline phase - Answers This phase of the Product Life Cycle has: -reduced competition - best selling products - stay profitable price - fewer outlets - minimal promotion decline phase - Answers the fourth phase of the Product Life Cycle harvesting - Answers This term refers to when a company retains the product but reduces marketing costs. The product continues to be offered, but salespeople do not allocate time in selling nor are advertising dollars spent. deletion - Answers this term refers to dropping the product from the company's product line, is the most drastic strategy. high learning product - Answers This product is one for which significant customer education is required and there is an extended introductory period low learning product - Answers these products sales begin immediately because little learning is required by the consumer fashion product - Answers This product is a style of the times. They are introduced, decline, and them seem to return. The length of the cycle may be months, years, or decades fad product - Answers this product experiences rapid sales on introduction and then equally rapid decline innovators - Answers The Life Cycle and Consumers: -Venturesome, higher educated; use multiple information sources early adopters - Answers The Life Cycle and Consumers: - Leaders in social setting; slightly above average education early majority - Answers The Life Cycle and Consumers: -Deliberate; many informal social contacts late majority - Answers The Life Cycle and Consumers: -Skeptical; below average social status laggards - Answers The Life Cycle and Consumers: Fear of debt; neighbors and friends are information sources brand manager - Answers product modification - Answers This 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 - Answers This involves the sale of two or more separate products in one package market modification - Answers This strategy is when a company tries to find new customers, increase a product's use among existing customers, or create new use situations product repositioning - Answers This term refers to changes the place a product occupies in a consumer's mind relative to competitive products trading up - Answers This term involves adding value to the product (or line) through additional features or higher-quality materials trading down - Answers This term refers to reducing a product's number of features, quality, or price