Regarding Product Life Cycles, Good Marketing Managers Know That

question 18

Multiple Choice

Regarding product life cycles, good marketing managers know that:

• A) all new brands start off in the market introduction stage.
• B) product life cycles can be extended through product modifications.
• C) a product must pass through all the product life cycle stages.
• D) no strategy planning is needed during the sales decline stage.
• E) a firm should use penetration pricing during market introduction, especially if the cycle is expected to move slowly.

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Definitions:

Annual Payments

Payments made once a year, often in the context of loan repayments or investment incomes.

Interest

is the cost of borrowing money or the payment received for lending money, typically expressed as an annual percentage of the principal.

Debt

An amount of money borrowed by one party from another, often used to make large purchases that cannot be funded by other means.

Present Value

The current price of a future monetary sum or a succession of cash flows, taking into account a certain rate of interest.