Marketing a Business (VCE SSCE Business Management): Flashcards
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Practise the cards
10 cards from this deck
Product life cycle
Product life cycle
Predictable pattern of sales performance over time
Four stages of product life cycle
Four stages of product life cycle
Introduction, growth, maturity, decline
Introduction stage: sales & profits
Introduction stage: sales & profits
Low & grow slowly; minimal or non-existent profits
Growth stage: profitability
Growth stage: profitability
Most profitable period in product's life cycle
Maturity stage: sales pattern
Maturity stage: sales pattern
Sales level off and reach a plateau (saturation point)
Decline stage: profitability
Decline stage: profitability
Product becomes unprofitable or generates minimal profit
Market penetration pricing
Market penetration pricing
Low initial prices to quickly gain high market share
Skimming policy
Skimming policy
High prices targeting early adopters, then gradual reductions
Brand loyalty
Brand loyalty
Consumers continue buying same product despite rival alternatives
Extension strategies purpose
Extension strategies purpose
Prolong product's market life before decline