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14 Cards in this Set

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List the 4 stages of Product life cycle.

- introduction


- growth


- mature


- decline

Describe what happens during introduction stage of PLC, in terms of marketing mix

introduction stage :


- when the new product is first introduced to consumers


- considered pricing : skimming/penetrating strategy


- skimming : to recover form the cost of manufacturing and distribution


- penetrating: appeal to larger group of consumer


- on advertisement, more information should be given to inform the consumer how to use and where to get the item.


- Goal is to get as many first time buyer as possible to try out the product


- no competitors yet


- profit is still negative


- sales are growing slow



Describe what happens during growth stage of PLC, in terms of marketing mix.

growth stage :


- new competitors has enter the market and bring in variation of the product.


- price may drop due to competition


- goal is to establish brand loyalty


- profit is growing rapidly (peaks)


- sales grow rapidly as well


- advertising heavily to beat competitors

Describe what happen during mature stage of PLC, in terms of marketing mix.

mature stage:


- product has new feature added and profit are mostly from replacement product


- goal is too attract new customers (from competitors)


- profit is in decline


- sales peaks and then level off


- advertisement is focusing on reminding consumers of the product

Describe what happen during decline stage of PLC, in terms of marketing mix.

decline stage :


- competitors/ company itself exit the market


- sales are in decline


- profits are in decline


- reduce cost on advertising and promotion to maintain profitability


- goal is to remain profitable and decide whether or not to leave the market


- pricing may remain or decrease if it can still remain profitable



what are the different stages in the adoption curve ?

1. Innovator


2. Early adopter


3. Early majority


4. Late majority


5. Laggards

what can marketers do to attract early adopters?

- they are more open to changes but take caution (unlike innovators who are risk lover)


- they tend to be opinion leaders


- they are more attracted to advertisements with phrases like " be a leader of ...trend."


- they are the most important group of consumers.

what are the characteristics of innovators ?

- they are venturous and tend to be risk lover


- could be socially aggressive


- cosmopolitan


- communicative



what are the characteristic of late majority ?

- more skeptic


- less cosmopolitan


- more resistant to change


- often are middle age


- lower economic and social bracket

what are the characteristic of laggard ?

- last group to accept change


- very reliant on other peoples' opinion and reaction to the product


- price conscious and low income status


- traditional bound


- suspicious


- conservative


- often very difficult to market to this group

what are the 5 factors that affects adoption rate ?

1. relative advantage


2. complexity


3. compatibility


4. trailabilty


5. observability

How does relative advantage affect the rate of adoption ?

- if there is an obvious advantage of using this new product over the other or the older version of the product


- people will be encouraged to use it and buy it


- thus speed up the rate of adoption


- vise versa if the benefit is not obvious

How does complexity affect the rate of adoption ?

- if the product is easy to use people will be more incline to buy and start using it compare to product that is very complex and hard to understand


- if it is easy, rate of adoption will increase


- vise versa for complex product

How does compatibility affect the rate of adoption ?

- if the product has the same value or lifestyle as the consumer then they are more likely to adopt


- E.G. adventurous people will be more attracted to product that is featured in bungee jumping or sky diving ad.