Question 1

Using the PLC concept to develop marketing strategy can be problematic because strategy is both a cause and a result of the product's life-cycle.

Accepted Answer

The PLC concept is a useful tool for understanding the various stages of a product's life-cycle but it's not recommended to use it as the sole basis for developing marketing strategy, as strategy is affected by various internal and external factors that could impact the product's life-cycle. It's more prudent to use the PLC concept as part of a broader marketing framework that considers other factors such as customer needs and preferences, competitor actions, technological developments, and market trends.

Question 2

During the introduction stage,a company that acts as a market pioneer should execute a launch strategy that is part of a marketing plan for the product's entire life-cycle.

Accepted Answer

It is important for a market pioneer to have a well-planned marketing strategy for their product's entire life-cycle, starting from the introduction stage. This helps in establishing the product in the market and ensuring its long-term success.

Question 3

Which of the following is NOT an example of sales improvements by modifying the marketing mix?
A)discounting prices to attract budget conscious consumers
B)using more aggressive promotional activity to reach more consumers
C)finding new distribution channels to reach new segments
D)reinforcing changes in the product to create a unique offering
E)acquiring a product through a corporate take-over

Accepted Answer

Acquiring a product through a corporate take-over is not an example of sales improvements by modifying the marketing mix. This is a strategic decision made at the corporate level that may ultimately impact the marketing mix, but it is not a direct modification of the mix itself. The other options listed all involve specific modifications to the marketing mix to improve sales.

Question 4

Mattel's Barbie is an example of a product with an extended life.Barbie,first launched in 1959,has undergone many incarnations.In spite of her age,Barbie is both timeless and trendy and would be said to be in the ________ stage of the PLC.
A)introduction
B)growth
C)maturity
D)decline
E)adoption

Accepted Answer

Barbie, being a product that has been around for over 60 years and has undergone many changes to remain relevant to different generations, is currently in the maturity stage of the PLC. It has already gone through the introduction and growth stages, and while it may not be as popular as it once was, it still maintains a significant market share, indicating that it has not yet entered the decline stage. The adoption stage refers to the initial phase of a product's introduction to the market, so it is not applicable in this case.

Question 5

A manufacturer with a product in the decline stage of the product life-cycle might decide to ________ if it has reason to hope that competitors will leave the industry.
A)harvest the product
B)maintain the product without change
C)drop the product
D)search for replacements
E)delay planning

Accepted Answer

Maintaining the product without change can be a strategic decision if the manufacturer believes that competitors will exit the market, potentially leaving a niche market or reduced competition, which could sustain or improve the product's profitability with minimal additional investment.

Question 6

A manufacturer with a product in the decline stage of the product life-cycle might decide to ________ if it has has major customers that buy the product in conjunction with their other products.
A)harvest the product
B)maintain the product without change
C)drop the product
D)search for replacements
E)delay planning

Accepted Answer

Maintaining the product without change can be a strategic decision if major customers continue to buy it alongside other products, ensuring continued sales and customer satisfaction.

Question 7

When Kraft focused on cost-cutting with its older and established brands,leaving them without much investment or modification,Kraft had decided to ________ the older products.
A)extend
B)maintain
C)drop
D)harvest
E)review

Accepted Answer

Harvesting a product involves reducing investment in it, focusing on maximizing the short-term profits and cash flow from the product without much concern for its long-term viability, which aligns with Kraft's actions described.

Question 8

Most products in the marketplace are in the ________ stage of the product life-cycle.
A)development
B)introduction
C)growth
D)maturity
E)decline

Accepted Answer

Most products in the marketplace are in the maturity stage of the product life-cycle. This stage is characterized by stable sales and the market becoming saturated, which makes it difficult for brands to grow and gain new customers. However, competition tends to increase, and brands have to differentiate their products to stay relevant.

Question 9

The maturity stage of the PLC is characterised by a slowdown in the rate of sales growth.

Accepted Answer

During the maturity stage of the PLC, the rate of sales growth slows down due to market saturation, increased competition, and a decrease in promotional activities.

Question 10

When a product enters the maturity stage,the company should consider ________.
A)harvesting the product
B)modifying the product,market,or marketing mix
C)divesting the product
D)maintaining the product
E)dropping the product

Accepted Answer

When a product enters the maturity stage, it means that sales have peaked or are beginning to decline. In this situation, the company should consider modifying the product, market or marketing mix to revitalize sales and extend the product's life cycle. Harvesting, divesting, maintaining or dropping the product may not be the best choices as they do not address the issue of declining sales.

Question 11

When Easy-Off oven cleaner replaced the harsh chemical smell of the cleaner with a fresh lemon fragrance,the Easy-Off manufacturer ________.
A)used a repositioning strategy
B)introduced a new-product line
C)added to an existing product line
D)improved an existing product
E)used a market diversification strategy

Accepted Answer

The Easy-Off manufacturer improved an existing product by replacing the harsh chemical smell with a fresh lemon fragrance, making it more appealing to consumers. This is an example of a product improvement strategy.

Question 12

Over the past 100 years or so,Crayola crayons have become a household staple in more than 80 countries around the world.Crayola crayons are in the ________ stage of the PLC.
A)introduction
B)maturity
C)growth
D)decline
E)incubation

Accepted Answer

Crayola crayons have been around for over a century and have become a staple in many households worldwide. This indicates that the product has reached its maturity stage in the PLC.

Question 13

Superior Luggage Company has undertaken the task of identifying its products in the decline stage of the PLC.Which of the following should NOT be done in the identification process?
A)regularly reviewing sales
B)regularly reviewing market shares
C)regularly reviewing costs and profit trends
D)regularly reviewing management's pet projects
E)None of the above.

Accepted Answer

Management's personal preferences or "pet projects" should not influence the identification process of products in the decline stage of the PLC. The focus should be on objective data such as sales, market shares, costs, and profit trends.

Question 14

Carrying a weak product during the decline stage of the PLC can be very costly to a firm,and not just in profit terms.Which one of these is NOT likely to be one of those costs?
A)takes up much of management's time
B)frequent price and inventory adjustment
C)requires advertising and salesforce attention
D)few customer concerns about company image
E)requires additional financial analysis

Accepted Answer

A weak product during the decline stage of the PLC is likely to require significant management attention, frequent price and inventory adjustments, advertising and salesforce attention, and additional financial analysis. However, few customer concerns about the company's image are not likely to be one of those costs.

Question 15

Which of the following best represents the options a company has when a product is declining?
A)maintain or harvest the product
B)harvest or drop the product
C)maintain,harvest or drop the product
D)maintain or pioneer the product
E)pioneer,harvest or maintain the product

Accepted Answer

When a product is declining, the company has the option to either maintain, harvest or drop the product. Maintaining the product involves continuing to offer it to customers, harvesting involves reducing further investment in the product and focusing on maximizing profits, and dropping the product involves discontinuing its production and sale. Therefore, option C best represents the available options a company has when a product is declining.

Question 16

Which of the following is an example of product modification?
A)Find new users for the product.
B)Find ways to increase usage among existing customers.
C)Find new market segments.
D)Create added product features or benefits.
E)Find new uses for the product.

Accepted Answer

Product modification involves adding new features or benefits to an existing product. Options A and B describe market development strategies, while option C describes market segmentation. Option E describes product diversification.

Question 17

Which of the following is NOT an example of market modification?
A)Find new users for the product.
B)Find ways to increase usage among existing customers.
C)Find new market segments.
D)Find new uses for the product.
E)Create added product features.

Accepted Answer

Market modification strategies typically involve finding new users for the product, increasing usage among existing customers, discovering new market segments, or finding new uses for the product. Creating added product features is more about product modification than market modification.

Question 18

Apple's iPod has been called 'one of the greatest consumer electronics hits of all time'.Since it was first marketed in 2001,more than 120 million iPods have been sold,and the iPod captures more than 70 per cent of the music player market.This success has attracted many large,resourceful competitors.The iPod is in the ________ stage of the product life-cycle.
A)introduction
B)product development
C)maturity
D)decline
E)adoption

Accepted Answer

The iPod has been on the market for over 20 years, and with over 120 million units sold, it has certainly reached maturity. It has also faced competition from other companies, indicating that it is no longer in the introduction or product development stages. However, its market share is still dominant, indicating that it has not yet entered the decline stage.

Question 19

Which of the following would lead to greater competition in the maturity stage of the PLC?
A)overcapacity in the market
B)market pioneers
C)poor management
D)inadequate promotion
E)diminishing budgets

Accepted Answer

Overcapacity in the market would lead to greater competition as there would be more supply than demand, forcing companies to compete more aggressively for customers. This would typically occur in the maturity stage of the PLC when the market becomes saturated with competitors. Market pioneers (B) would lead to less competition as they have a first mover advantage and have already established their position in the market. Poor management (C), inadequate promotion (D), and diminishing budgets (E) may impact the success of individual companies, but would not necessarily impact overall competition in the market.

Question 20

Magazine publisher,Pacific Publications,has sold off a number of magazine titles with declining circulations such as TV Week.In this example,management decided to ________ the products.
A)further test
B)maintain
C)drop
D)harvest
E)re-position

Accepted Answer

The word "sold off" implies that management decided to drop or get rid of the declining magazine titles, indicating that they were no longer profitable or worth maintaining in the company's portfolio.

Quiz 8: Products, Services and Brands: Building Customer Value

Using the PLC concept to develop marketing strategy can be problematic because strategy is both a cause and a result of the product's life-cycle.

During the introduction stage,a company that acts as a market pioneer should execute a launch strategy that is part of a marketing plan for the product's entire life-cycle.

Which of the following is NOT an example of sales improvements by modifying the marketing mix?

Mattel's Barbie is an example of a product with an extended life.Barbie,first launched in 1959,has undergone many incarnations.In spite of her age,Barbie is both timeless and trendy and would be said to be in the ________ stage of the PLC.

A manufacturer with a product in the decline stage of the product life-cycle might decide to ________ if it has reason to hope that competitors will leave the industry.

A manufacturer with a product in the decline stage of the product life-cycle might decide to ________ if it has has major customers that buy the product in conjunction with their other products.

When Kraft focused on cost-cutting with its older and established brands,leaving them without much investment or modification,Kraft had decided to ________ the older products.

Most products in the marketplace are in the ________ stage of the product life-cycle.

The maturity stage of the PLC is characterised by a slowdown in the rate of sales growth.

When a product enters the maturity stage,the company should consider ________.

When Easy-Off oven cleaner replaced the harsh chemical smell of the cleaner with a fresh lemon fragrance,the Easy-Off manufacturer ________.

Over the past 100 years or so,Crayola crayons have become a household staple in more than 80 countries around the world.Crayola crayons are in the ________ stage of the PLC.

Superior Luggage Company has undertaken the task of identifying its products in the decline stage of the PLC.Which of the following should NOT be done in the identification process?

Carrying a weak product during the decline stage of the PLC can be very costly to a firm,and not just in profit terms.Which one of these is NOT likely to be one of those costs?

Which of the following best represents the options a company has when a product is declining?

Which of the following is an example of product modification?

Which of the following is NOT an example of market modification?

Which of the following would lead to greater competition in the maturity stage of the PLC?

Magazine publisher,Pacific Publications,has sold off a number of magazine titles with declining circulations such as TV Week.In this example,management decided to ________ the products.