In which of the following stages of product lifecycle a company reduces sales promotion to take advantage of heavy consumer demand?

In which of the following stages of product life cycle a company reduces sales promotion to take advantage of heavy consumer demand?

1. Introduction
2. Growth
3. Maturity
4. Decline

Answer (Detailed Solution Below)

Option 2 : Growth

Product Life Cycle:

1. The term product life cycle refers to the length of time a product is introduced to consumers into the market until it's removed from the shelves.
2. The life cycle of a product is broken into four stages—introduction, growth, maturity, and decline.
3. This concept is used by management and by marketing professionals as a factor in deciding when it is appropriate to increase advertising, reduce prices, expand to new markets, or redesign packaging.
4. The process of strategizing ways to continuously support and maintain a product is called product life cycle management.

1. Introduction Stage:
   • The introduction stage shows low sales numbers as the product is being introduced in the market.
   • Profit is zero or negative in this stage because of the heavy expenses of product introduction. 
   • Sales Promotion Strategy: Use heavy sales promotion to entice trial.
2. Growth Stage:
   • With proper marketing, a product can go into the growth stage.
   • During the growth stage, sales rise rapidly as consumers begin to accept the product.
   • The production runs become longer, and economies of scale are achieved, reducing per-unit cost, and also helping profits to increase rapidly. 
   • Sales Promotion Strategy: Reduce to take advantage of heavy consumer demand.
3. Maturity Stage:
   • During the maturity stage of the product life cycle, the sharp growth in sales begins to slow, and profits at the beginning of this stage decline. 
   • The most notable characteristic of this stage is the peaking of the product’s sales and profit curves.
   • At the beginning of the maturity stage, sales continue to grow but at a much slower rate.
   • Towards the end of this stage, sales and profits will start to fall fairly rapidly.
   • This stage is characterized by severe competition as many brands enter the market.
   • To combat competition, marketing costs increase substantially results in a reduction in profits. 
   • Sales Promotion Strategy: Increase to encourage brand switching.

For any product, it’s PLC will go to the decline stage, where the product’s sales and profits fall very quickly, and most competitors leave the market. Sales Promotion Strategy: Reduce to a minimal level.

Thus, option 2 is the correct answer.

Name the branding practice wherein several related products with the same brand name are advertised using the same advertisement.

1. Umbrella Branding
2. Ingredient Branding
3. Salience Branding
4. Co-Branding

Answer (Detailed Solution Below)

Option 1 : Umbrella Branding

In Umbrella Branding several related products with the same brand name are advertised using the same advertisement.

• Umbrella branding also called family branding, is amarketing strategy where a single brand name is used to increase the sale of two or more similar products.
• Umbrella branding is used in companies that have positive brand equity.
• Since all the products in umbrella branding are interrelated, the success of one product will increase the sale of other products as well.
• This branding techniqueallows the companies to concentrate on their energy and resources to promote a single brand instead of investing in various marketing campaigns for various products.
• For example, Apple Inc where a customer can find iPhones, iPads, and other related products.

• Ingredient branding is a marketing strategy where the constituent of business is branded as a separate entity.
• It helps in adding value to the parent company which makes their product rank higher than the products of its competitors.
• It is a particular type of brand collaboration that is different from co-branding.
• It highlights a particular feature or a brand attribute that enhances the product or service which can become a point-of-parity.
• For example, Intel's Intel Inside, Intel Inside is actually credited with the conception of ingredient branding back in the ’90s, and was the first success story of having an ingredient helping to promote their business.

2. Salience Branding

• Brand Silence is the degree to which a customer thinks or notices your brand in a buying situation.
• Strong brands have a higher brand silence than those of weaker brands.
• Brand Silence means the memory of a particular brand and its linkage with the memory structure that helps in differentiating the brands.

3. Co-branding

• Co-branding is a strategy that uses several brand names on a service or good as a part of a strategic alliance. 
• Co-branding is also known as brand partnership.
• It combines brand awareness, market strength, and positive association of two or more brands to force consumers to pay a higher premium price.
• For example, Citi AAdvantage cards give you American Airlines miles when a customer spends his money.

The strategy to ensure the purchase of new product or high quality product by the customer is called

1. Core sales
2. Upgrading
3. Full-line sales
4. Product-line sales

Answer (Detailed Solution Below)

Option 2 : Upgrading

Therefore, the strategy to ensure the purchase of a new product or high-quality product by the customer is called Upgrading.

The creative design routes are practised by adopting following steps:1. Concentration2. Illumination3. Preparation4. Verification5. IncubationArrange the above steps in the correct sequence:

1. 3,1, 5, 2, 4
2. 3, 5, 2, 1, 4
3. 3, 2, 1, 5, 4
4. 3, 1, 2, 5, 4

Answer (Detailed Solution Below)

Option 1 : 3,1, 5, 2, 4

Explanation:

The Creative Process:

Creativity is more than a flash of insight. Creativity is more than a flash of insight. Instead, creativity can be thought of as a process with five identifiable steps or stages:

(1) Preparation:

Preparation is the first step in the creative process. In the preparation stage, all parts of the problem are thoroughly investigated. This includes consciously gathering and examining information, defining problems, and generating alternative ideas for addressing the problem. 

(2) Concentration:

In the concentration stage, the energy and resources of the person (or of the organization) are focused on solving the problem. The individual, in essence, concentrates his or her efforts on the problem or situation. There is a choice to engage with the process and a commitment to find a solution. This stage is not so much a matter of mental activity as it is a matter of choice.

(3) Incubation:

The incubation stage is a largely unconscious phase of the creative process. It is, in essence. the "black box" of creativity. There is internalization and subconscious ordering and reordering of information gathered in the preparation stage. The person cannot force this process; the best that the individual can do is attempt to relax and allow the subconscious to work and ideas to surface. This may involve the combination of previously unrelated thoughts and a subconscious struggle between what is and what might be. Conscious thought and effort probably interfere, rather than help, in this stage.

(4) Illumination:

Illumination is the "Eureka!" of the creative process. This is the moment of insight or discovery when the answer simply seems to arrive in the person's conscious mind from his or her subconscious mind. It has been called an epiphany, a revelation, or a brainstorm-a sudden realization of something new or novel. But when viewed as part of the creative process, such insights actually occur after the individual has gathered information and gone through a period of subconscious mental activity during which the brain has worked on the problem.  

(5) Verification:

The final stage of the creative process is verification. This involves testing and verifying the idea or insight as viable. In other words, the creative solution is evaluated against some standard of appropriateness or acceptability, and the creator seeks corroboration and acceptance of the idea.

As the product passes through different stages of a product life cycle, the product variety

1. increases

2. decreases and then increases

3. remains the same
4. decreases

Answer (Detailed Solution Below)

Option 4 : decreases

Explanation:

The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for businesses that are trying to manage the life cycle of their particular products.

Introduction Stage: 

• This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector.

Growth Stage:

• The growth stage is typically characterized by strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in promotional activity to maximize the potential of this growth stage.

Maturity Stage:

• During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.

Decline Stage:

• Eventually, the market for a product will start to shrink, and this is what’s known as the decline stage. This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the product have already purchased it), or because the consumers are switching to a different type of product. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less expensive production methods and cheaper markets.

Then, we can say that as the product pass through the various stage of product cycle its variety is decreased.

Branding of product

1. makes it more saleable.
2. differentiates it from other products in the market.
3. make it more attractive for customer.
4. gives customer rebate on MRP.

Answer (Detailed Solution Below)

Option 2 : differentiates it from other products in the market.

At a very basic level, branding means stamping a product with a particular name of the sign. Products have an associating brand value with which the consumer associates themselves.

• For example, there are many soaps but every company will have to give the soap a different name, by doing this, they create another brand of soap.
• A brand is created through distinctive features like a name, sign, symbol or design.
• A brand name helps consumers distinguish between products of the same category and increases their recall value.
• It also creates a mental image of the product among consumers.​

Thus, we can say that the Branding of a product differentiates it from other products in the market.

​

• Only branding a product is not enough because there are many brands of the same product available in the market.
  • This creates tough competition for the manufacturers.
  • They have to convince us that their products are better than the others.
  • And at this juncture advertising comes in. It plays a crucial role in trying to convince us to buy a product that is advertised.
  • Thus, we cannot say that branding makes it more saleable.
• Branding is the process of creating a strong, positive perception of a company, its products or services in the customer's mind by combining such elements as logo, design, mission statement, and a consistent theme throughout all marketing communications.
  • Thus, it will make it attractive for the customer, but it will create more impact if consumers find it different from other products.

When two separate companies or two divisions within the same company agree to place both of their respective brands on a particular product or enterprise, this arrangement is termed as :

1. Differential Branding
2. Cobranding
3. Dual Branding
4. Both Cobranding and Dual Branding

Answer (Detailed Solution Below)

Option 4 : Both Cobranding and Dual Branding

Branding is a marketing activity in which a company creates a new product, design, image which would represent as belonging to that company.

1) Differential Branding:

• When two separate company or two divisions within the same company agrees to make a brand which is different from its competitors or even different from its own previous product or enterprise then its is known as Differential Branding.
• Differential branding helps firms to target niche markets with directive marketing efforts by interacting directly with the most suitable audiences.

2) Cobranding:

• When two or more well-known brands form a strategic alliance and are marketed combined to facilitate sales and increase brand awareness then it is known as Cobranding.
• In Cobranding, brands can share the risks and bigger sales targets could be achieved. Joint advertising also gives them a wider scope.

3) Dual Branding:

• It is the same as Cobranding, the only difference which sets Dual branding apart is that this method is used when the promotion of only one new brand would not result as the company expects on its own.
• This strategy is used by marketers when a sub-brand is soon to be launched of a well-known parent-brand. By using this strategy, sales of that particular sub-brand would increase if the parent-brand has goodwill enough. 

Therefore, when two separate companies or two divisions within the same company agree to place both of their respective brands on a particular product or enterprise, this arrangement is termed as both Cobranding and Dual Branding

Which of the following is not true for supply chain mangement approach?

1. Joint reduction in channel inventories
2. Large breadth of supplier base to increase competition and spread risk
3. Risks and rewards are shared over long term
4. Companies use intermodal transportation to reach to their markets

Answer (Detailed Solution Below)

Option 2 : Large breadth of supplier base to increase competition and spread risk

The untrue statement is "Large breadth of supplier base to increase competition and spread risk"

Supply Chain Management:

• The management of the movement of goods and services is referred to as supply chain management, and it encompasses all procedures that transform raw materials into finished items.
• It includes actively simplifying a company's supply-side processes in order to increase customer value and achieve a competitive advantage in the market.

• From the raw product to the end product to the consumer, a company builds a network of suppliers that move the product from the raw material suppliers to the organizations that deal directly with the users.
• It is the sharing of risk and returns in the long run, different transports are used by the companies to reach the market.

From the above options, option (b) is not correct, as competition and risk aversion to suppliers does not increase.

Match List I with List II List I(International product lifecycle stage) List II(International competition) a. Introduction i. Companies from other high-income countries increase exports to the innovating country b. Growth ii. Competitors from other high-income countries may begin production in developing countries c. Maturity iii. A few competitors at home d. Decline iv. Competitors in other high-income countries begin production for their domestic markets Choose the correct answer from the options given below:

1. a-iii, b-iv, c-i, d-ii
2. a-iii, b-i, c-iv, d-ii
3. a-ii, b-iv, c-i, d-iii
4. a-iv, b-ii, c-i, d-iii

Answer (Detailed Solution Below)

Option 1 : a-iii, b-iv, c-i, d-ii

 The product life cycle is the amount of time a product goes from being introduced into the market until it's taken off the shelves. There are four stages in a product's life cycle—introduction, growth, maturity, and decline.

Stage 1 Introduction

• In this stage, a new product is launched in a target market where the intended consumers are not well aware of its presence.
• Customers who acknowledge the presence of the product may be willing to pay a higher price in the greed to acquire high-quality goods or services. With this consistent change in manufacturing methods, production completely relies on skilled laborers.
• Competition at the international level is absent during the introduction stage of the international product lifecycle. Competition comes into the picture during the growth stage when developed markets start copying the product and sell it in the domestic market.
• These competitors may also transform from being importers to exporters to the same country that once introduced the product.

Stage 2 Growth

• An effectively marketed product meets the requirements of its target market. The exporter of the product conducts market surveys, analyze and identify the market size and composition. At this stage, the competition is still low.
• Sales volume grows rapidly in the growth stage. This stage of the product lifecycle is marked by fluctuating increases in prices, high profits, and promotion of the product on a huge scale.

Stage 3 Maturity

• In this level of the product lifecycle, the level of product demand and sales volumes increase slowly.
• Duplicate products are reported in foreign markets marking a decline in export sales.
•  In order to maintain market share and accompany sales, the original exporter reduces prices.
• There is a decrease in profit margins, but the business remains tempting as sales volumes soar high.

Stage 4 Decline

• This is the final stage of the product lifecycle. In this stage sales volumes decrease and many such products are removed or their usage is discontinued.
• The economies of other countries that have developed similar and better products than the original one export their products to the original exporter's home market.
• This has a negative impact on the sales and price structure of the original product. The original exporter can play a safe game by selling the remaining products at discontinued items' prices.

Therefore, the correct match is:

Hence Option1 is correct.

The retail supply chain does NOT include

1. manufactures
2. retailers
3. wholesalers
4. regulators

Answer (Detailed Solution Below)

Option 4 : regulators

Retail Supply Chain Management

All the processes that you utilize to ensure your products reach the customers, starting from obtaining the raw materials, managing inbound materials & production processes to last-mile delivery of those products at your customer’s doorstep, are together known as a retail supply chain.

Players in the supply chain

The primary members of the simple, basic supply chain as follows;

• Supplier
• Manufacturer
• Distributor
• Retailer
• Customer

Each of them manages its activities adding value to the creation of a product. The above figure unlocks a basic understanding of the supply chain.

Therefore, from the above explanation, The retail supply chain does NOT include regulators.

The channel alternative is NOT to be assessed on the basis of

1. economic criteria
2. control criteria
3. adaptive criteria
4. accumulation criteria

Answer (Detailed Solution Below)

Option 4 : accumulation criteria

The channel alternative is NOT to be assessed on the basis of accumulation criteria.

Explanation:

1. A firm must identify the types of channel members available to carry out its channel work in terms of types of intermediaries, number of intermediaries, and responsibility of each.
2. After identifying the channels, the company must evaluate them against economic, control, and adaptive criteria.

1. Using economic criteria, a company compares the likely sales, costs, and profitability of each alternative.
2. Control issues mean giving some control of the marketing of a product to the intermediary. The company must retain as much control as possible.
3. Channels often involve long-term commitment; hence companies must consider the ability of a channel to adapt to environmental changes.

Match List I with List ll List I List Il A. Value added by Channel Members‐Low; Market Growth Rate‐Low l. Introductory stage B. Value added by Channel Members‐High; Market Growth Rate‐Low ll. Growth stage C. Value added by Channel Members‐Low; Market Growth Rate‐High lll. Mature stage D. Value added by Channel Members‐High; Market Growth Rate‐High lV. Decline stage Choose the correct answer from the options given below:

1. A ‐ l, B ‐ lV, C ‐ lll, D ‐ ll
2. A ‐ ll, B ‐ l, C ‐ lll, D ‐ lV
3. A ‐ lV, B ‐ l, C ‐ lll, D ‐ ll
4. A ‐ lll, B ‐ l, C ‐ lV, D ‐ ll

Answer (Detailed Solution Below)

Option 3 : A ‐ lV, B ‐ l, C ‐ lll, D ‐ ll

The correct answer is  A ‐ lV, B ‐ l, C ‐ lll, D ‐ ll.

The life cycle of a product goes through four stages: introduction, growth, maturity, and decline.

imp 

Introduction: To raise consumer awareness of the product and its advantages, this phase typically involves a sizable investment in advertising and promotion. Value added by Channel Members is High &  Market Growth Rate is Low.

Growth: The product enters the growth stage if it is a success. This is characterised by a rise in demand, an expansion in supply, and a rise in production. Value added by Channel Members is High &  Market Growth Rate is high.

Maturity: While production and marketing expenses are declining, this is the period that is most profitable. Value added by Channel Members is Low & Market Growth Rate is High.

Decline: A product faces more competition as other businesses try to replicate its success, either by adding new features or lowering pricing. The item can lose market share and start to decline. Value added by Channel Members is Low &  Market Growth Rate is Low.

Match List I with List II: List I List II (A) Actual Delivery (I) Delivery of means of obtaining possession of goods by the seller to the buyer (B) Constructive Delivery (II) Physical handing over of the possession of the goods by the seller to the buyer (C) Symbolic Delivery (III) Voluntary transfer of possession of goods from seller to buyer (D) Delivery (IV) Acknowledgement by a third person in possession of goods to hold them on behalf of and at the disposal of the buyers. Choose the correct answer from the options given below:

1. (A) - (IV), (B) - (I), (C) - (III), (D) - (II)
2. (A) - (II), (B) - (IV), (C) - (I), (D) - (III)
3. (A) - (I), (B) - (III), (C) - (IV), (D) - (II)
4. (A) - (III), (B) - (II), (C) - (IV), (D) - (I)

Answer (Detailed Solution Below)

Option 2 : (A) - (II), (B) - (IV), (C) - (I), (D) - (III)

The correct answer is (A) - (II), (B) - (IV), (C) - (I), (D) - (III)

Constructive delivery: Even when there is no change in the possession or custody of the items, the transfer of the commodities is still permitted. A case of a constructive delivery would be one made through acknowledgement or attornment. It is a positive delivery if you agree to pick up a package for your friend and keep it for him.

Symbolic delivery: Delivery that acts as a symbol for the transfer of another item is referred to as a symbolic delivery. For instance, a symbolic delivery will occur when the buyer receives the key to the godowns containing the products.

Delivery: Voluntary transfer of possession of goods from seller to buyer is called delivery.

Environmental characteristics/factors influencing distribution decisions are(A) Government policy(B) State of economy(C) Social activistism(D) Technological and infrastructure developments(E) Statutory provisionsChoose the most appropriate answer from the options given below:

1. (A), (D) only
2. (B), (C), (E) only
3. (A), (C), (D) only
4. (A), (B), (D), (E) only

Answer (Detailed Solution Below)

Option 4 : (A), (B), (D), (E) only

The correct answer is (A), (B), (D), (E) only

Distribution Channel:

• Distribution channel is the path a good or service takes from the point of production or manufacture to the final consumer or buyer.
• A producer, a wholesaler, a retailer, and the final customer make up the majority of distribution routes.
• A distribution channel can also show how money moves back and forth from the producer or initial point of sale to the consumers.

• Factors related to market such as customer, competition
• Product factor such as nature of the product, technical factor
• Government Policy
•  State of the Economy
• Technological and Infrastructural Development

Which of the following is not true while determining length of distribution channel?

1. The larger the market size, the longer the channel.
2. If the average lot size is large, it is better to have a longer channel.
3. If the product and the market require a high level of service, it is advisable to keep a shorter channel.
4. If customers shop for an assortment of products, it demands for a water channel of distribution.

Answer (Detailed Solution Below)

Option 2 : If the average lot size is large, it is better to have a longer channel.

The incorrect option is "If the average lot size is large, it is better to have a longer channel."

• A distribution channel is a network of businesses or intermediaries through which a good or service is purchased by the final buyer.
• Wholesalers, retailers, distributors, and the Internet are all examples of distribution channels.
• When the manufacturer sells directly to the consumer it is called a direct distribution channel.

1. Size of the market: The larger the market size, the longer the channel. Conversely, the smaller the market the smaller the channel. Hence, option 1 is correct.
2. Order lot size: If the order lot size is small, it is better to have a longer channel and vice-versa. Hence, option 2 is incorrect
3. Service Requirements: If the product and market require a high level of service, and it is a major factor in buying decisions, it is better to keep a shorter channel. Hence, option 3 is correct.
4. Product variety: If a wide assortment of same type of product is available in the market, then it is advisable to select a wider channel. Hence, option 4 is correct.

Statement (I) : Designing a distribution system for a service (for-profit or non-business context) involves to select the parties only through which ownership will pass.Statement (II) : The ownership channel for most of the services is long and quite complex because of inseparability characteristic.Statement (III) : Short channels usually mean more control on the part of the seller. Identify the correct code of being the statements correct or incorrect. These statements relate to channel strategies of products/services

1. Statements (I) and (II) are correct but (III) is not correct
2. Statements (I) and (III) are correct but (II) is not correct
3. Statements (I) and (II) are not correct but (III) is correct.
4. Statements (I), (II) and (III) all are not correct.

Answer (Detailed Solution Below)

Option 3 : Statements (I) and (II) are not correct but (III) is correct.

Distribution channel for a service:

• A distribution channel is a path through which the goods or services move from the company to the customer or the transfer of payment takes place from the customer to the company.  
• Distribution channel refers to the selling of products or services directly or through different intermediaries like wholesalers, retailers, etc.
• The same applies for payment transfer from the customer to the company i.e. it can be paid directly or through those intermediaries.
• Designing a distribution system for a service (for-profit or non-business context) involves selecting the parties not only through which ownership will pass but also making sure that the quality of services which is being transferred remains constant throughout the channel of distribution until it reaches the final consumer.
• The ownership channel for most of the services is short and not complex because of the inseparable characteristic. 
• Long channels in the distribution channel of service might result in a decrease in the value-added to the customer. 
• Short channels provide more control on the part of sellers as they can provide special services with immediate responses as there is direct contact between the seller and the customer in short channels.

Therefore, from the above explanation it is clear that Statements (I) and (II) are not correct but (III) is correct. 

What are the 5 stages of the product life cycle?

What are the 4 stages of product life cycle?

In which stage of the product life cycle is there an increase in promotion?

In which stage of the product life cycle the sales of the product decreases?