What is the product life cycle? Describe the conditions that products encounter at each stage of the cycle. How can a product life cycle be expanded?
What will be an ideal response?
The first stage of the cycle is Introduction. The firm introduces the new product to customers. Sales promotion and advertising efforts and expenses are high, while sales are low and profits are normally negative. During the Growth stage sales are growing and the product starts making a profit. This is the stage that entices competition so prices often fall. Marketers focus on building brand loyalty. The Maturity stage is characterized by peak sales, declining profits, and intensive competition Companies often cut prices to compete for customers. The Decline stage is characterized by rapidly falling sales and profits. Consumers prefer newer products so managers are confronted with the choice of deleting products or finding ways of extending the product life cycle. The product life cycle can often be extended by encouraging a more frequent usage of the product, identifying new users, finding new uses for the product, or modifying the product in some way.
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Investment Sales Corporation wants to monitor its employees' electronic communications. Investment Sales's best course of action to avoid liability under laws related to employee monitoring is to notify
A) no one. B) its employees. C) its clients. D) the public generally.
First Editions, Inc., a book dealer based in Texas, does business in all fifty states exclusively online. According to a decision of the United States Supreme Court, for an individual state to compel an out-of-state business to collect and remit state taxes, the business must have in that state
A. a substantial physical presence. B. a potential marketing base. C. an accessible Web site. D. a party paid to solicit business for its products.
Downwind Land Corporation and Leeward Investments Company transfer their property to Financial Managers, Inc., which manages the property and distributes the profits to Downwind and Leeward. This form of a business organization is
A. a business trust. B. a joint stock company. C. a joint venture. D. a syndicate.