MKTG 400 exam queries and
answers well graded 100%
Product life cycle - ANS✅✅the stages a new product goes through in the market place:
introduction, growth, maturity, and decline
Introduction Stage - ANS✅✅The introduction 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 marketing objective for the company at this stage is to create consumer awareness and
stimulate trial—the initial purchase of a product by a consumer
Growth stage - ANS✅✅The growth stage of the product life cycle is characterized by rapid
increases in sales. It is in this stage that competitors appear. The result of more competitors and
more aggressive pricing is that profit usually peaks during the growth stage
Maturity Stage - ANS✅✅The maturity stage is characterized by a slowing of total industry sales or
product class revenue. Also, marginal competitors begin to leave the market. Marketing attention in
the maturity stage is often directed toward holding market share through further product
differentiation and finding new buyers and uses
Decline Stage - ANS✅✅The decline stage occurs when sales drop as well as competitors. Firms will
harvest or delete there products. Frequently, a product enters this stage not because of any wrong
strategy on the part of companies, but because of environmental changes.
Price Skimming - ANS✅✅a high initial price to help the company recover the costs of development
as well as capitalize on the price insensitivity of early buyers (introduction)
Penetration pricing - ANS✅✅Pricing low to discourage competitive entry. (introduction)
Low-Learning - ANS✅✅begin immediately because little learning is required by the consumer and
the benefits of purchase are readily understood. This product often can be easily imitated by
competitors, so the marketing strategy is to broaden distribution quickly.
High-learning - ANS✅✅is one for which significant customer education is required and there is an
extended introductory period. It may surprise you, but personal computers had this life-cycle curve.
Consumers in the 1980s had to learn the benefits of owning the product or be educated in a new
way of performing familiar tasks
, Fashion - ANS✅✅is a style of the times. Life cycles for fashion products frequently appear in
women's and men's apparel. Fashion products are introduced, decline, and then seem to return. The
length of the cycles may be months, years, or decades. Consider women's hosiery. Product sales
have been declining for years. Women consider it more fashionable to not wear hosiery—bad news
for Hanes brands, the leading marketer of women's sheer hosiery
Fad - ANS✅✅experiences rapid sales on introduction and then an equally rapid decline (Figure 11-
3D). These products are typically novelties and have a short life cycle. They include car tattoos, sold
in Southern California and described as the first removable and reusable graphics for automobiles,
and vinyl dresses and fleece bikinis made by a Minnesota clothing company.
branding - ANS✅✅an organization's use of a name, phrase, design, symbol, or combination of
these to identify and distinguish its products
brand name - ANS✅✅any word, device, or combination of these used to distinguish a seller's
goods or services
brand personality - ANS✅✅a set of human characteristics associated with a brand name
brand equity - ANS✅✅the added value a brand name gives to a product beyond the functional
benefits provided (consumers will pay higher price)
multiproduct branding (family branding/ Corporate branding) - ANS✅✅a branding strategy in
which a company uses one name (sub brands) for all its products in a product class ( high cost of
marketing, awareness built from scratch)
multibranding - ANS✅✅a branding strategy that involves giving each product a distinct name
Packaging - ANS✅✅component of a product refers to any container in which it is offered for sale
and on which label information is conveyed. (the first exposure a consumers has with the product)
Warranty - ANS✅✅is a statement indicating the liability of the manufacturer for product
deficiencies. There are various types of product warranties with different implications for
manufacturers and customers.
answers well graded 100%
Product life cycle - ANS✅✅the stages a new product goes through in the market place:
introduction, growth, maturity, and decline
Introduction Stage - ANS✅✅The introduction 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 marketing objective for the company at this stage is to create consumer awareness and
stimulate trial—the initial purchase of a product by a consumer
Growth stage - ANS✅✅The growth stage of the product life cycle is characterized by rapid
increases in sales. It is in this stage that competitors appear. The result of more competitors and
more aggressive pricing is that profit usually peaks during the growth stage
Maturity Stage - ANS✅✅The maturity stage is characterized by a slowing of total industry sales or
product class revenue. Also, marginal competitors begin to leave the market. Marketing attention in
the maturity stage is often directed toward holding market share through further product
differentiation and finding new buyers and uses
Decline Stage - ANS✅✅The decline stage occurs when sales drop as well as competitors. Firms will
harvest or delete there products. Frequently, a product enters this stage not because of any wrong
strategy on the part of companies, but because of environmental changes.
Price Skimming - ANS✅✅a high initial price to help the company recover the costs of development
as well as capitalize on the price insensitivity of early buyers (introduction)
Penetration pricing - ANS✅✅Pricing low to discourage competitive entry. (introduction)
Low-Learning - ANS✅✅begin immediately because little learning is required by the consumer and
the benefits of purchase are readily understood. This product often can be easily imitated by
competitors, so the marketing strategy is to broaden distribution quickly.
High-learning - ANS✅✅is one for which significant customer education is required and there is an
extended introductory period. It may surprise you, but personal computers had this life-cycle curve.
Consumers in the 1980s had to learn the benefits of owning the product or be educated in a new
way of performing familiar tasks
, Fashion - ANS✅✅is a style of the times. Life cycles for fashion products frequently appear in
women's and men's apparel. Fashion products are introduced, decline, and then seem to return. The
length of the cycles may be months, years, or decades. Consider women's hosiery. Product sales
have been declining for years. Women consider it more fashionable to not wear hosiery—bad news
for Hanes brands, the leading marketer of women's sheer hosiery
Fad - ANS✅✅experiences rapid sales on introduction and then an equally rapid decline (Figure 11-
3D). These products are typically novelties and have a short life cycle. They include car tattoos, sold
in Southern California and described as the first removable and reusable graphics for automobiles,
and vinyl dresses and fleece bikinis made by a Minnesota clothing company.
branding - ANS✅✅an organization's use of a name, phrase, design, symbol, or combination of
these to identify and distinguish its products
brand name - ANS✅✅any word, device, or combination of these used to distinguish a seller's
goods or services
brand personality - ANS✅✅a set of human characteristics associated with a brand name
brand equity - ANS✅✅the added value a brand name gives to a product beyond the functional
benefits provided (consumers will pay higher price)
multiproduct branding (family branding/ Corporate branding) - ANS✅✅a branding strategy in
which a company uses one name (sub brands) for all its products in a product class ( high cost of
marketing, awareness built from scratch)
multibranding - ANS✅✅a branding strategy that involves giving each product a distinct name
Packaging - ANS✅✅component of a product refers to any container in which it is offered for sale
and on which label information is conveyed. (the first exposure a consumers has with the product)
Warranty - ANS✅✅is a statement indicating the liability of the manufacturer for product
deficiencies. There are various types of product warranties with different implications for
manufacturers and customers.
