Marketing and Product Life Cycle Concepts

A set of flashcards covering key marketing concepts and definitions related to the product life cycle, branding, pricing strategies, and consumer behavior.

Decline stage marketing objective

Start harvesting.

GPS SmartSole is a discreet wearable insole that fits in the shoe and provides GPS tracking of the wearer. This product is being marketed as an inexpensive solution for caregivers whose charges are prone to wandering, like those with Alzheimer’s or autism. When the insoles were first made available to consumers, what was the marketing objective for the company at that early stage of the product life cycle?

Create awareness and stimulate trial.

Promotional expenditures at introduction stage when few if any competitors exist, are best spent on

Advertising to stimulate primary demand.

Primary demand

Desire for the product class rather than for a specific brand.

Profit decline during maturity stage because…

Fierce price competition among sellers.

Strategies for decline stage products

Divesting or harvesting.

High-learning product life cycle curve example

Electric cars

Deliberate adopters in diffusion of innovation

Early adopters.

Branding

An organization's use of a name, phrase, design, symbol, or combination to identify its products.

White apple used by Apple in advertising and on its products is an example of a

Logo.

Primary benefit of branding for consumers

Helps consumers become more efficient shoppers.

Brand equity

Creates a competitive advantage and customers are willing to pay a higher price.

Brand licensing

Contractual agreement allowing another firm to use its brand name or trademark for a royalty or fee.

Good brand name criterion

Suggests its benefits.

Selling a new product in a new market segment

Brand extension strategy.

Higher advertising costs with a strategy

Multibranding strategy.

Mixed branding

Markets some products under its own name and other products under the name of a reseller.

Most accurate statement regarding labels

Labels can be very expensive and are important as they are often the first contact with the consumer.

Portable low-fat yogurt product significance

Importance of packaging functions.

Expanded marketing mix for services

Seven Ps of services marketing.

Price element in services

Price can affect consumer perceptions of the service.

Key factor in developing service marketing strategy

Inseparability of services from the producer.

Tangibles in service marketing

Physical environment.

Example of product in maturity stage

Presweetened breakfast cereals.

Classifications of consumers adopting innovations

Based on when consumers begin buying a new product.

Examples of charges

Insurance premiums, entrance fees, train fares.

Ratio of perceived benefits to price

Value.

Apple's pricing strategy for iPhone launch

Skimming pricing.

Pricing strategy of American Furniture Warehouse

Odd-even pricing.

Cost-oriented pricing method example

Standard markup pricing.

Consistency in vending machine pricing

Customary pricing strategy.

Kroger's special promotion strategy

Attract customers in hopes they will buy other products.

Inelastic demand revenue strategy

Raising its price.

Important cost concept in pricing decisions

Fixed cost.

Attracting customers with low-priced products

Bait and switch.