Question 1

Which of the following promotion strategies did the manufacturer of EcoSpun, a velvet upholstery fabric made from recycled plastic soda bottles, have to use when it introduced its new fabric to furniture manufacturers?

Accepted Answer

EcoSpun was a new product made from an innovative material, so the manufacturer needed to focus on developing product category awareness among furniture manufacturers to introduce and explain the unique benefits and existence of this new category of fabric.

Question 2

The appropriate marketing strategy for a product like Ritz crackers that is in the mature stage of its product life cycle is:

Accepted Answer

Defensive positioning is the appropriate marketing strategy for a product like Ritz crackers that is in the mature stage of its product life cycle. This strategy involves protecting the product's market share by emphasizing its strengths and defending against competitors' attacks.

Question 3

During which stage of the product life cycle are marketing costs typically the lowest?

Accepted Answer

During the decline stage of the product life cycle, marketing costs are typically the lowest because the product is well-established, and efforts to push the product into the market are reduced as the focus shifts towards newer products or technologies.

Question 4

Cappio was the first canned ready-to-drink coffee on the market. It had to create demand for the product category. As soon as demand for the product was shown to exist, Coke and Pepsi began promoting their own brands of canned, ready-to-drink coffee. During which stage of the product life cycle would you expect to see such activity occurring?

Accepted Answer

The activity described occurs during the growth stage of the product life cycle, where demand increases and competitors enter the market with their own versions of the product.

Question 5

Another name for the growth stage of the product life cycle is the _____ stage.

Accepted Answer

The growth stage of the product life cycle is also known as the market-acceptance stage, where the product starts gaining acceptance among a broader audience, and sales begin to significantly increase.

Question 6

During the _____ stage of the product life cycle, both sales and profits rise, numerous competitors enter the market, and sellers use promotional programs to stimulate demand for their brands.

Accepted Answer

During the growth stage of the product life cycle, sales and profits typically increase, competition becomes more intense as new players enter the market, and companies often engage in promotional activities to differentiate their products and attract customers.

Question 7

When a product is in the growth stage of the product life cycle, there will most likely be:

Accepted Answer

During the growth stage, the market sees an increase in competitors as the product gains acceptance and sales rise rapidly, attracting more companies to enter the market.

Question 8

Software to help parents restrict what their children can find on the Internet is in the growth stage of the product life cycle. The manufacturer of a program like Cybersitter, which acts as an Internet parental censor, should know that:

Accepted Answer

During the growth stage of the product life cycle, products typically experience rapid sales increases as they gain acceptance and popularity in the market.

Question 9

During the _____ stage of the product life cycle, sales continue to increase but at a decreasing rate, marginal competitors are forced to drop out of the market, and trade-in sales become significant.

Accepted Answer

The maturity stage of the product life cycle is characterized by a peak in sales growth, where sales continue to increase but at a slower rate. During this stage, weaker competitors start leaving the market, and sales increasingly rely on replacement or trade-in purchases.

Question 10

Dial Company introduced liquid soap in 1988. Today competition in the industry is intense. The manufacturers of liquid soap are adopting a defensive positioning strategy and intensive product distribution. Their promotions appeal to brand loyalty. From this information, you know that liquid soap is in the _____ stage of its product life cycle.

Accepted Answer

The description of intense competition, defensive positioning, intensive distribution, and promotions appealing to brand loyalty are characteristic of the maturity stage of the product life cycle. This stage is marked by a slowdown in sales growth because the product has achieved acceptance by most potential buyers, leading to increased competition and efforts to maintain market share.

Question 11

When a product is in the maturity stage of the product life cycle,:

Accepted Answer

In the maturity stage of the product life cycle, the market becomes saturated, leading to increased competition. This results in a decline in profits for both manufacturers and retailers as they may have to reduce prices or increase marketing and promotional expenses to maintain their market share.

Question 12

In terms of the product life cycle, the soft-drink market is basically a mature market. There are still many profitable small regional soft drinks, such as Big Red, Cheerwine, and Vernors. What type of product strategy would you expect these small bottlers to use?

Accepted Answer

In a mature market, small regional soft drink companies would likely use product differentiation to stand out from larger competitors by offering unique flavors, branding, or targeting niche markets to maintain profitability.

Question 13

When video games were first introduced, they were played on 16-bit game computers. As soon as 32-bit machines were introduced, sales for the 16-bit quickly fell, and the 16-bit product category entered the _____ stage of its product life cycle.

Accepted Answer

The decline stage of the product life cycle is characterized by a significant fall in sales and market share, which is what happened to 16-bit game computers when 32-bit machines were introduced.

Question 14

Few people today iron and starch their own shirts. Even fewer want to use a product like boxed Argo dry starch, which allows the user to mix the starch so that shirts can be stiff enough to stand alone. But Argo still has a loyal band of users, so the manufacturer still produces the product but with little promotion and expectation of making a profit. From this description, you should know that this type of starch is in the _____ stage of its product life cycle.

Accepted Answer

The product is in the decline stage of its product life cycle, indicated by the reduced demand and minimal promotion, yet it is still produced for a loyal customer base.

Question 15

When a product is in the decline and possible abandonment stage of the product life cycle,:

Accepted Answer

During the decline and possible abandonment stage of the product life cycle, advertising typically decreases as companies reduce spending on products that are not generating significant revenue. Demand for the product also decreases, which is why it is in the decline stage. Marginal producers often struggle to make a profit due to reduced sales volumes, and economies of scale may not be achievable or relevant due to the reduced production and sales volumes.

Question 16

Because most people prefer color television, there is little demand for black-and-white TVs. The black-and-white television is probably in the _____ stage of its product life cycle.

Accepted Answer

The black-and-white television is in the decline stage of its product life cycle because demand for it has significantly decreased due to the preference for color television.

Question 17

Many mixed alcoholic beverages are popular for a brief period of time, and then fade from popularity just as quickly as they became popular. These mixed drinks that are based on a short-lived popularity are an example of:

Accepted Answer

Fads are intense but short-lived trends, often seen in consumer products like mixed alcoholic beverages, which gain rapid popularity but then fade away just as quickly.

Question 18

Like many characters created for commercials, the duck from the AFLAC insurance commercials has appeared on T-shirts, caps, cups, and posters-some licensed, many not. Soon some other commercials will capture the attention of U.S. consumers, and some other character(s) will appear on T-shirts, caps, cups, and posters. These commercial-derived products are examples of:

Accepted Answer

Commercial-derived products like those featuring the AFLAC duck that become popular for a short time are examples of fads, which are intense but short-lived trends.

Question 19

Which of the following statements about the product life cycle is True?

Accepted Answer

The product life cycle concept suggests that products go through stages from introduction to growth, maturity, and decline. With rapid technological advancements and changing consumer preferences, product life cycles are generally becoming shorter as products are quickly replaced or updated.

Question 20

Which of the following statements about the product life cycle is True?

Accepted Answer

The product life cycle stages (introduction, growth, maturity, and decline) can vary significantly across different markets. A product might be growing or mature in one market but just being introduced in another, reflecting differences in consumer preferences, market development, and competitive landscapes.

Quiz 9: Product-Mix Strategies

Which of the following promotion strategies did the manufacturer of EcoSpun, a velvet upholstery fabric made from recycled plastic soda bottles, have to use when it introduced its new fabric to furniture manufacturers?

The appropriate marketing strategy for a product like Ritz crackers that is in the mature stage of its product life cycle is:

During which stage of the product life cycle are marketing costs typically the lowest?

Another name for the growth stage of the product life cycle is the _____ stage.

During the _____ stage of the product life cycle, both sales and profits rise, numerous competitors enter the market, and sellers use promotional programs to stimulate demand for their brands.

When a product is in the growth stage of the product life cycle, there will most likely be:

Software to help parents restrict what their children can find on the Internet is in the growth stage of the product life cycle. The manufacturer of a program like Cybersitter, which acts as an Internet parental censor, should know that:

During the _____ stage of the product life cycle, sales continue to increase but at a decreasing rate, marginal competitors are forced to drop out of the market, and trade-in sales become significant.

When a product is in the maturity stage of the product life cycle,:

In terms of the product life cycle, the soft-drink market is basically a mature market. There are still many profitable small regional soft drinks, such as Big Red, Cheerwine, and Vernors. What type of product strategy would you expect these small bottlers to use?

When video games were first introduced, they were played on 16-bit game computers. As soon as 32-bit machines were introduced, sales for the 16-bit quickly fell, and the 16-bit product category entered the _____ stage of its product life cycle.

When a product is in the decline and possible abandonment stage of the product life cycle,:

Because most people prefer color television, there is little demand for black-and-white TVs. The black-and-white television is probably in the _____ stage of its product life cycle.

Many mixed alcoholic beverages are popular for a brief period of time, and then fade from popularity just as quickly as they became popular. These mixed drinks that are based on a short-lived popularity are an example of:

Which of the following statements about the product life cycle is True?

Which of the following statements about the product life cycle is True?