Exercise 4*. Fill in the blanks using terms given below.

The Product Life Cycle

A new product.........through a sequence of stages from introduction to growth, ma­turity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the...........and the.............

Introduction Stage

The firm seeks to build..........and develop a market for the product. The impact on the marketing mix is as follows:

— Product..........and quality level is established, and intellectual property protection such as.........and...........are obtained.

— Pricingmay be............to build..........rapidly, or............to recover...............

— Place (distribution) is..........until consumers show acceptance of the product.

— Promotionis aimed at.........and...........Marketing............seek to build product awareness and to educate potential consumers about the product.

Growth Stage

The firm seeks to build..............and increase market share.

— Productquality is maintained and additional...........and support services may be added.

— Pricingis maintained as the firm enjoys increasing.........with little competition.

— Place (distribution channels)are added as demand increases and customers accept the product.

— Promotion is aimed at broader..........

Maturity Stage

The strong growth in sales..........Competition may appear with similar products. The primary..........at this point is to defend market share while.........profit.

— Productfeatures may be enhanced to.........the product from that of competitors.

— Pricingmay be lower because of new competition.

— Place (distribution)becomes more intensive and..........maybe offered to encourage preference over competing products.

— Promotion.........on product differentiation.

Decline Stage

As sales decline, the firm has several options:

—.........the product, possibly rejuvenating it by adding new features and finding new uses.

— Harvest the product — ..........and continue to offer it, possibly to a............

—.........the product, liquidating remaining...........or selling it to another firm that is willing to continue the product.

The marketing mix decisions in the decline phase will depend on the selected strategy. For example, the price may be maintained if the product is harvested, or reduced drastically if liquidated.

Terms:

inventory, discontinue, market share, loyal niche segment, low penetration pricing, objective, incentives, diminishes, differentiate, trademarks, marketing mix, product aware­ness, branding, patents, high "skimming" pricing, selective, early adopters, brand pref­erence, demand, maximizing, reduce costs, progresses, marketing strategy, development costs, audience, features, maintain, focuses, communications

Exercise 5. Translate into English.