Briefly explain each step in a typical product life cycle
What will be an ideal response?
Product development begins when a company finds and develops a new product idea. During this stage, sales are zero and the company's investment costs mount. Introduction is a period of slow sales growth as the product is introduced in the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction. Growth is a period of rapid market acceptance and increasing profits. Maturity is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or decline because of increased marketing outlays to defend the product against competition. Decline is the period when sales fall off and profits drop. At this stage, a company may decide to maintain, harvest, or drop a product.
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When making a retrospective adjustment, all of the following steps are included except
A) computing the cumulative effect of the new accounting principle as of the beginning of the first period presented. B) adjusting the current period net income for the cumulative effect of the change. C) adjusting the carrying value of impacted assets and liabilities. D) disclose the nature and reason for the change in accounting principle, including the new principle is preferable.
"Just Do It" is a famous tagline used by the Nike Corporation. Which of the following types of intellectual property would this tagline come under?
A. trademark B. patent C. trade secret D. copyright
A good reason for developing or joining a vertical marketing system is that
A. market competition at each level of the channel eliminates inefficient firms and serves consumers' needs better. B. no member of the channel has to plan for the whole channel, since good decisions at each level run the channel. C. the whole channel focuses on the same target market at the end of the channel and seems to be more effective. D. no member of the channel has to bear the costs of the regrouping activities. E. All of these are good reasons for developing or joining a vertical marketing system.
One problem that can occur from the use of a transactional website is ________, even though marketers claim the number of new customers they attract to stores offsets this problem.
A. cannibalization B. unauthorized buzz C. stickiness D. excessive product returns E. customer attrition