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Marketing Management Study Questions part 2 (with answer)

Marketing Management Study Questions part 2 (with answer) -...

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BRAND MANAGEMENT AND PRODUCT DECISIONS What are the stages in the product life cycle? Development-Introduction-Growth-Maturity-Decline What happens to profits across the life cycle? Negative profit-growing profit-high profit-moderate profit Should a marketer set the same market share objectives or other objectives across the life cycle? No. Introduction: Marketers attempt to build share quickly to gain first-mover advantages. Advertising should focus on selling the idea . Growth: Satisfaction and loyalty are important. Show uniqueness to competitors. Maturity: Low-cost position is critical for long-term success. Invest on streamlining and improve the manufacturing process. Decline: Most companies with a declining product want to maintain the lucrative replacement market but are willing to give up market share in exchange for earnings. Turn to shallower product line . If actual products seldom precisely follow the theoretical product life cycle curve, what use is the product life cycle concept? Researchers need to develop other mathematical and statistical models that examine market size, the number of initial buyers, and the time between first and repeat purchase. These can be very useful, particularly for products that behave similarly to those modeled. How does positioning relate to the product life cycle? Introduction: specialty-Growth & Maturity: comparison-Decline: commodity How do companies extend life cycles? Selling to new segments, stimulate more frequent use, encourage more use per occasion, promote more varied use What is the adoption/diffusion curve? Adoption Process : the 5 steps an individual consumer goes through in making a product choice: knowledge, persuasion, decision, implementation, and confirmation. Diffusion Process : the spread of innovations from one group of consumers to another over time. Innovators, early adopters, early majority, late majority, laggards Why is it often preferred over the product life cycle to build marketing strategies? Sales are influenced dramatically by the interaction of buyers, through word of mouth, as well as by promotions and messages from marketers.
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Product acceptance is passed from one group of consumers to the next. Which group of customers (according to diffusion theory) are extremely important to target, what are their characteristics and why should they be targeted? Early adopters: they have high incomes and educational level, they are key to good word-of- mouth publicity and wider acceptance, they are well respected in their community, compared with the innovators, they are ten times powerful on influencing people. Product planning is often designed to manage existing and new products for existing and new market segments. What are the 4 product strategies that result?
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