Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

14 Cards in this Set

  • Front
  • Back

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.