Concept check
Date: 2015-10-07; view: 493.
1. Define the product life cycle.
2. Why can a product be compared with a living thing?
3. What are four stages in the product life cycle?
4. Describe changes in sales at each stage of the product life cycle.
5. Read the sentences and decide which of them are true and correct the false ones. Explain your choice.
| 1) The introduction stage of a new product requires a lot of spending. | T/F |
| 2) At the introduction stage, marketers try to create customer's brand loyalty. | T/F |
| 3) At the growth stage, profits and competition grow. | T/F |
| 4) The entry of competitors onto the market will make more consumers aware of the product and stimulate them to try it. | T/F |
| 5) At the maturity stage, manufacturers gain profit from economies of scale. | T/F |
| 6) The maturity stage is usually the longest. | T/F |
| 7) Marketers start looking for more consumers once the maturity stage is reached. | T/F |
| 8) When a product becomes obsolete, it enters the decline stage. | T/F |
| 9) A product can have temporary increases of sales during its decline stage. | T/F |
| 10) Some products may never become obsolete. | T/F |
6. Describe the diagramme using the following phrases: At first ...; To start with ...Secondly, thirdly, etc. Then ...; Later ...; Later on ...; Afterwards ... Subsequently ...; At this point or stage ...; During this time ... Meanwhile ...; Eventually ...; In time ... Ultimately ...
7. Give the definition of line stretching.
8. What benefit does line-stretching bring to companies?
9. What is the growth-share matrix?
10. Why do companies invest in Stars?
11. Do the Stars necessarily give the return on the investments?
12. What are Cash Cows characterised by?
13. Why do companies continue producing Dogs?
14. What does the marketer try to do with of the Problem Child?
15. Give the definition of a Strategic Business Unit.
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