Unit 1: Introduction to Marketing

What is the product life cycle?

• The estimation of how long it will take a product to falter in the market
• The entire existence of a product from its origins to its death
• The length of time it takes for a product to enter the market
• The cycle of how many times a product is copied in the market

Which stage of the product life cycle is represented by a concentrated effort on promotional activities?

• Decline stage
• Growth stage
• Maturity stage
• Introduction stage

What is market saturation?

• When a product has reached its maximum level of productivity in the market
• When a product has died in the market
• When a product has just begun to succeed in the market
• When a product is unable to reach the maturity stage in the product life cycle

Which of the following is NOT a stage in the product lifecycle?

• Growth
• Implementation
• Maturity
• Decline

Which of the following is a characteristic of the decline stage?

• Increase in sales
• Increase in advertising
• Decrease in sales
• Investments in product development

What is the purpose of the introductory stage of the product life cycle?

• Launch the product and increase demand for the product
• Determine market trends
• Launch market statistics
• Determine market statistics

Which is NOT a limitation of the introductory stage of the product life cycle?

• High costs
• No competition
• Little to no market for the product
• Large initial investments

What is a benefit of the introductory stage of the product life cycle?

• Ability to set higher prices
• Operating losses
• Low sales
• Small product investments

What is the primary benefit of the maturity stage?

• New competitors enter the market
• Sales increase
• There are no benefits of the maturity stage
• Opportunity for a business to differentiate itself from its new competitors

Which stages of the product life cycle come before the maturity stage?

• Introduction and growth
• Sales and profits
• Initiation and planning
• Development and closing