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Read the information supplied and answer the questions which follow - Leaving Cert Business - Question A - 2018
Question A
Read the information supplied and answer the questions which follow. Product Life Cycle SALES TIME Launch ... show full transcript
Worked Solution & Example Answer:Read the information supplied and answer the questions which follow - Leaving Cert Business - Question A - 2018
Step 1
Name two stages in the product life cycle above, where sales are increasing.
Answer
The two stages in the product life cycle where sales are increasing are:
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Growth Stage: This is the stage following the launch, where sales start to increase as more consumers become aware of the product.
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Maturity Stage: This is the stage where the product has reached its peak in sales, and while growth may have plateaued, it remains a significant period of profitability.
Step 2
Name one example of a product in the launch/introductory stage and one example of a product in the decline stage.
Answer
In the launch/introductory stage, an example of a product is the latest smartphone model, as new tech constantly enters the market. In the decline stage, an example might be DVD players, as streaming services have overtaken their popularity.
Step 3
Explain two functions of product packaging.
Answer
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Provide Information: Packaging serves to inform consumers about the product, including ingredients, usage instructions, and warnings, thereby enhancing consumer knowledge and safety.
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Attract Consumers/Catch the Consumer's Eye: Effective packaging design grabs consumers' attention on store shelves, helping the product stand out from competitors and fostering brand recognition.
Step 4
Explain the term target market.
Answer
A target market is defined as the specific group of consumers at whom a particular product or service is aimed. This is often determined by various demographic factors such as age, income level, gender, location, and lifestyle preferences. Identifying a target market allows businesses to tailor their marketing efforts more effectively.
Step 5
Name a target market for electric cars.
Answer
A target market for electric cars could include environmentally-conscious consumers, such as eco-friendly individuals seeking sustainable transportation options. Another group might be urban dwellers who appreciate the cost savings on fuel and the convenience of charging in metropolitan areas.
Step 6
Illustrate, using a diagram, one channel of distribution a baker could use for freshly baked cakes.
Answer
A common distribution channel for a baker selling freshly baked cakes is:
MANUFACTURER
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RETAILER
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CONSUMER
In this case, the baker (manufacturer) sells directly to local cake shops (retailers), which then sell to the end consumers.
Step 7
Explain the term test marketing.
Answer
Test marketing involves evaluating a new product by launching it in a limited market to gauge consumer response before full-scale introduction. This phase helps identify potential improvements based on consumer feedback, which can be crucial for product success.
Step 8
Outline two others stages in the development process of a new product.
Answer
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Idea Generation: This is the stage where initial concepts for the new product are systematically gathered, creating a broad pool of ideas through either internal brainstorming sessions or external sources such as market research.
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Feasibility Study: In this stage, the viability of the product is assessed, including market potential and production capabilities. This study determines if the product idea is worth pursuing based on available resources and anticipated return on investment.