ENTREPRENEURIAL MARKETING
MARKETING MIX
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which statement is true about a product in the sales decline stage of it’s life cycle?
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Brand managers should phase-out this product as quickly as possible.
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A declining product may still be profitable for some time so a gradual phase-out may be appropriate.
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Customers will always abandon the declining product immediately if an alternative is available.
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Phasing-out a product at this time is fairly easy.
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Explanation:
Detailed explanation-1: -Decline: The decline stage of a product is when a mature product loses customer interest and its sales start drifting downward.
Detailed explanation-2: -For example, products like typewriters, telegrams, and muskets are deep in their decline stages (and in fact are almost or completely retired from the market).
Detailed explanation-3: -Maturity Stage Eventually, the market grows to capacity, and sales growth of the product declines. In this stage, price undercutting and increased promotional efforts are common as companies try to capture customers from competitors.
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