Question 1

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

Accepted Answer

Kraft decided to "harvest" the older products, which means they focused on maximizing short-term profits from these established brands without investing in their long-term growth or development.

Question 2

Refer to the scenario below to answer the following question(s).
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many electronic toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 7 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacture of children's racecars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely be reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-Evelyn's vacuum is at the ________ stage of the product life cycle.
A) product development
B) introduction
C) growth
D) decline
E) maturity

Accepted Answer

The answer of Refer to the scenario below to answer...

Question 3

Although products that remain in the maturity stage of the PLC seem unchanged, the most successful ones actually evolve to meet changing consumer needs.

Accepted Answer

Products in the maturity stage of the PLC may appear unchanged, but the most successful ones adapt to changing consumer needs by adding new features, improving quality, or changing marketing strategies. This allows them to remain relevant and competitive in the market.

Question 4

At which stage in the PLC do profits increase as promotion costs are spread over a large volume, and as the firm enters new market segments?
A) maturity
B) introduction
C) decline
D) growth
E) harvest

Accepted Answer

During the growth stage of the PLC, profits increase as promotion costs are spread over a large volume, and as the company enters new market segments. This is because during this stage, sales are rapidly increasing, and the company is expanding its customer base, which helps to spread promotion costs over a larger volume. Additionally, the company may be introducing new products or entering new markets, which can also lead to increased profits.

Question 5

A(n) ________ chooses a strategy consistent with the intended product positioning. To gain market leadership requires correct decisions from the beginning.
A) brand evangelist
B) market pioneer
C) early adopter
D) laggard
E) harvester

Accepted Answer

A market pioneer is the first company to enter a new market with a product or service. They often choose a strategy that is consistent with the intended product positioning, as they have the opportunity to set the standard for how the product or service will be perceived in the market. Making correct decisions from the beginning can help a market pioneer gain a significant advantage over later competitors and lead to market leadership. Brand evangelists, early adopters, laggards, and harvesters are not related to the concept of being the first to enter a market.

Question 6

Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing competition?
A) growth
B) decline
C) maturity
D) product development
E) adoption

Accepted Answer

The answer of Which of the following stages of the...

Question 7

Kellogg's begins to sell its cereals in new markets after conducting extensive marketing research. After the cereal begins to appear in these new markets, the company increases its promotion expenditure to counteract competitive responses. Kellogg's is in the ________ stage of the product life cycle.
A) introduction
B) growth
C) maturity
D) decline
E) adoption

Accepted Answer

Kellogg's conducting extensive marketing research to enter new markets suggests that it is in the growth stage of the product life cycle. The increased promotion expenditure to counteract competition also confirms this stage, as companies in the maturity stage usually maintain their promotion expenditure, while companies in decline may reduce it.

Question 8

Big Moose Toys is a market pioneer introducing a modern version of Bubble the Moose, a character from an animated television series originally broadcast in the '50s and '60s. The company's version of Sandy the Flying Squirrel, a character from the show targeted to baby boomers, was a strong success. Since the firm is a market pioneer, it needs to make the new launch strategy for Bubble the Moose consistent with the intended ________.
A) pricing
B) product positioning
C) brand extension
D) prototype
E) fad

Accepted Answer

As a market pioneer, Big Moose Toys needs to make sure that the new launch strategy for Bubble the Moose is consistent with the intended product positioning. This means that the company should focus on how they want Bubble the Moose to be perceived in the market and how it should differentiate itself from other products. Pricing, brand extension, prototype, and fad are important factors to consider, but they are not directly related to product positioning.

Question 9

Due to dropping sales, a company that manufactures soaps begins to sell them to restaurants and hotels to extend their product's life. The soap manufacturer is in the ________ stage of PLC.
A) introduction
B) growth
C) maturity
D) decline
E) development

Accepted Answer

The fact that the soap manufacturer is selling its products to non-conventional channels (restaurants and hotels) due to dropping sales implies that the product has reached the decline stage of PLC. In this stage, sales and profits begin to decrease, and the company may resort to measures such as cost-cutting or finding new markets to extend the product's life.

Question 10

P&G has sold off a number of lesser or declining brands such as Folgers coffee and Cover Girl cosmetics. In these examples, management decided to ________ the products.
A) modify
B) maintain
C) drop
D) harvest
E) franchise

Accepted Answer

The word "sold off" suggests that P&G made the decision to get rid of these brands entirely, rather than modifying them or maintaining them. The term "harvest" typically refers to a strategy of maximizing profits from a declining product before eventually dropping it, but in this case P&G chose to sell the brands outright. Franchising is not relevant to this particular scenario.

Question 11

Most successful products are immediately accepted, and quickly move to the growth stage of the PLC.

Accepted Answer

While some successful products may experience a rapid acceptance and growth, not all immediately reach the growth stage of the PLC. Some may first go through a trial period, where they are tested and adopted slowly before gaining mass popularity. Others may experience a slower uptake due to market saturation, competition or other factors. Therefore, it is not accurate to say that most successful products immediately move to the growth stage of the PLC.

Question 12

Over the past few years, Binney and Smith's Crayola crayons has expanded to more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC.
A) introduction
B) laggard
C) maturity
D) decline
E) incubation

Accepted Answer

Crayola crayons have been on the market for over a century and are widely recognized and used around the world, indicating that they have reached the maturity stage of the PLC. In this stage, sales growth slows down, and the product is available in a wide range of markets, as is the case with Crayola crayons.

Question 13

When sales of a product drop during the decline stage of the PLC, a company typically modifies the marketing mix, the product, or the market.

Accepted Answer

The answer of When sales of a product drop during...

Question 14

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 (Product Life Cycle) concept is often used in marketing to understand and develop strategies for a product at different stages of its life cycle, including introduction, growth, maturity, and decline. However, using the PLC concept alone to develop marketing strategy can be problematic because strategy is not solely a result of the product's life cycle, but it can also be a cause that influences the product's development and performance. Marketing strategy should also take into consideration external factors such as competition, consumer demand, and market trends.

Question 15

Which stage in the PLC normally lasts longest and poses strong challenges to marketing managers?
A) growth
B) decline
C) maturity
D) introduction
E) adoption

Accepted Answer

The maturity stage in the PLC normally lasts the longest and poses strong challenges to marketing managers. During this stage, sales growth slows down, competition intensifies, and profits may start declining. Marketers must strive to maintain market share, differentiate their products, and sustain brand loyalty in order to survive in this stage.

Question 16

When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was modifying the ________.
A) market
B) pricing strategy
C) distribution
D) product
E) competition

Accepted Answer

The introduction of new packaging and colors was a modification to the actual product, which would fall under the product component of the marketing mix.

Question 17

Profits drop during the growth stage of the PLC because per customer promotion costs are high.

Accepted Answer

Profits typically increase during the growth stage of the PLC, as sales volume increases and economies of scale kick in. Additionally, per customer promotion costs may actually decrease during this stage as word-of-mouth and brand recognition help to create organic growth.

Question 18

When a product is in the maturity stage, the company should most likely consider ________.
A) harvesting the product or market
B) modifying the product, market, or marketing mix
C) divesting the product line
D) liquidating the firm's assets
E) dropping the product from its market offerings

Accepted Answer

In the maturity stage, sales growth tends to slow down, and the product reaches its peak. Therefore, the company should consider modifying the product, market, or marketing mix to stay competitive and extend the product's life cycle. It may involve introducing new features, updating packaging, improving the distribution channel, or targeting a new market segment. Harvesting, divesting, or dropping the product should be considered only after careful evaluations and analysis. Liquidating the firm's assets is not necessary in this stage.

Question 19

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

Accepted Answer

The majority of products in the marketplace are in the maturity stage of the product life cycle, where sales growth has slowed down, market share has stabilized, and competition is high. This stage is characterized by intense marketing efforts to maintain market share and maximize profits. While a small percentage of products may still be in the growth or decline stages, the majority are in maturity. Products in the development or introduction stage are still in the early stages of the product life cycle and make up a much smaller proportion of the overall marketplace.

Question 20

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

Accepted Answer

Overcapacity means that there is excess supply in the market, which leads to price wars and intense competition. This can happen in the maturity stage when there are many competitors and limited growth opportunities.

Quiz 9: Developing New Products and Managing the Product Life Cycle

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

Although products that remain in the maturity stage of the PLC seem unchanged, the most successful ones actually evolve to meet changing consumer needs.

At which stage in the PLC do profits increase as promotion costs are spread over a large volume, and as the firm enters new market segments?

A(n) ________ chooses a strategy consistent with the intended product positioning. To gain market leadership requires correct decisions from the beginning.

Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing competition?

Due to dropping sales, a company that manufactures soaps begins to sell them to restaurants and hotels to extend their product's life. The soap manufacturer is in the ________ stage of PLC.

P&G has sold off a number of lesser or declining brands such as Folgers coffee and Cover Girl cosmetics. In these examples, management decided to ________ the products.

Most successful products are immediately accepted, and quickly move to the growth stage of the PLC.

Over the past few years, Binney and Smith's Crayola crayons has expanded to more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC.

When sales of a product drop during the decline stage of the PLC, a company typically modifies the marketing mix, the product, or the market.

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.

Which stage in the PLC normally lasts longest and poses strong challenges to marketing managers?

When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was modifying the ________.

Profits drop during the growth stage of the PLC because per customer promotion costs are high.

When a product is in the maturity stage, the company should most likely consider ________.

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

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