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Question

Which of the following marketing strategies is/are not used in ‘growth stage’ of the product life cycle ?

The correct answer is
Using awareness and trial communications.

Product Life Cycle: Growth Stage Strategies

The Product Life Cycle (PLC) describes the stages a product goes through from introduction to decline. Marketing strategies need to adapt to each stage. The question asks which strategy is NOT typically employed during the growth stage.

Understanding the Growth Stage

The growth stage is characterized by rapidly increasing sales and profits. The primary marketing objective shifts from simply creating awareness to building brand preference and increasing market share. Competitors begin to enter the market.

Analysis of Marketing Strategies

Let's evaluate the options based on typical growth stage objectives:

  • Improving quality and adding new features: This helps differentiate the product from competitors and appeal to a broader customer base, making it suitable for the growth stage.
  • Adding new models of product: Introducing variations or new models caters to different market segments and enhances market penetration during growth.
  • Entering new market segments: Expanding into untapped segments is a key strategy to accelerate sales growth and capture more market share.
  • Using awareness and trial communications: This strategy focuses on introducing the product and encouraging initial purchase. It is characteristic of the introduction stage, not the growth stage, where the focus is already established and shifts towards building preference and loyalty.

Conclusion

Strategies like improving quality, adding features, introducing new models, and entering new segments are aimed at capitalizing on increasing demand and competition during the growth phase. Conversely, focusing heavily on initial awareness and trial communications is primarily associated with the earlier introduction stage, aiming to get the product noticed and tried for the first time.

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Important Questions from Product Life Cycle

  1. The proper sequence of design of a product is
  2. Consider the following statements related to different stages of PLC and choose the correct code :
    (a) Introduction – A period of slow sales growth and low profit.
    (b) Introduction – A period of slow sales growth and non-existent profit.
    (c) Growth – A period of rapid market acceptance and substantial profit improvement.
    (d) Growth – A period of rapid market acceptance and slow profit improvement.
    (e) Decline – Sales show a downward drift and profits stabilize.
    (f) Decline – Sales show a downward drift and profits erode.
    Codes :
  3. In which one of the following product life cycle stages a firm improves product quality and adds new features and improved styling ?

  4. Which one of the following customers are risk averse, technology shy, and price sensitive?

  5. Match List I with List II:

    List- I

    PLC Stage’ 

    List – II

    Communication Strategy 

    A.

    Introduction 

    (I)

    Stress. brand differences and benefits and encourage brand switching 

    B.

    Maturity 

    (II)

    Build awareness and interest in the mass market 

    C.

    Growth 

    (III)

    Reduce to minimal level needed to retain customers 

    D.

    Decline 

    (IV)

    Build product awareness and trial among dealers 

    Choose the correct answer from the options given below -  
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