[ECON 344] - Final Exam Guide - Everything you need to know! (46 pages long)

• School: University of Waterloo
• Department: Economics
• Course: ECON344
• Professor: Camelia Nunez

Document Summary

The new product life cycle: introduction stage: When a product is 1st introduced to its intended target market. Sales grow slowly, profit is minimal: often the result of large investment costs in product development. Primary demand advertising: involves messages promoting the benefits of a general product category. Selective demand advertising: involves the placement of advertising messages intended to persuade customers about the benefits of a compa(cid:374)(cid:455)"s (cid:271)(cid:396)a(cid:374)d. Low initial prices (penetration pricing) can be used to discourage competitive entry: growth stage: and build unit volume. Due to more competitors, advertising efforts switch to selective demand to showcase the products benefits compared to competitors to gain market share. Gain a growing amount of repeat purchasers. Cha(cid:374)ges i(cid:374) the p(cid:396)odu(cid:272)t (cid:271)egi(cid:374) to appea(cid:396) to help diffe(cid:396)e(cid:374)tiate a (cid:272)o(cid:373)pa(cid:374)(cid:455)"s (cid:271)(cid:396)a(cid:374)d f(cid:396)o(cid:373) its competitors: product proliferation: different versions of the same product. Important to gain as much distribution as possible: often means that competing companies fight for display and shelf space, maturity stage: