State five distinct stages of product life cycle

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Reference no: EM132348547

PRINCIPLES OF MARKETING

PART A

1. Define new product development.

2. Define acquisition.

3. Define idea generation.

4. Define idea screening.

5. Define concept development and testing.

6. List EIGHT (8) major stages in new product development.

7. Briefly explain internal sources and external sources.

8. Define product life cycle.

9. State FIVE (5) distinct stages of product life cycle.

PART B

Scenario 1

When Apple first introduced the iPhone, its initial price was as much as $599 per phone. The phone was purchased only by customers who really wanted the sleek new gadget and could afford to pay a high price for it. Six month later, Apple dropped the price to $399 for an 8GB model and $499 for the 16GB model to attract new buyers. Within a year, it dropped prices again to $199 and $299, respectively and you can now buy an 8GB model for $49. In this way, Apple skimmed the maximum amount of revenue from the various segments of the market.

Scenario 2

When IKEA first opened stores in China in 2002, people crowded in but not to buy home furnishings. Instead, they came to take advantage of the freebies-air conditioning, clean toilets, and even decorating ideas. By increasingly stocking its Chinese stores within China-made products, the retailer pushed prices on some items as low as 70 percent below prices in IKEA’s outlets outside China. The penetration pricing strategy worked. IKEA now captures a 43 percent market share of China’s fast-growing home wares market alone, and the sales of its 11 mammoth Chinese stores surged 23 percent last year.

1. a) Based on scenario 1, what pricing strategy used by Apple in order to attract people buying their iPhone?

b) In scenario 2, what pricing strategy used by IKEA to boost up their 43 percent market share in China?

c) Briefly explain market skimming.

d) Briefly explain market penetration.

e) In scenario 2, why people came to IKEA but did not buy home furnishing in 2002?

2. Explain FIVE (5) product mix pricing strategies.

3. Discuss FIVE (5) price adjustment strategies.

4. Identify FIVE (5) types of promotional tools.

5. Briefly explain FOUR (4) ways of setting the total promotional budget.

6. Give TWO (2) examples of sales promotion.

Reference no: EM132348547

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