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7. Insert prepositions.

1. A firm launches, modifies and deletes products … response … changes … product life cycle.

2. The duration … life cycle depends … the product.

3. There are four stages … the life … a product.

4. … the introduction stage high marketing costs result … low profit.

5. When the product appears … the market its price is often high.

6. The firms specializing … marketing the product are usually the only survivors … the marketplace.

7. Sometimes consumers switch … competing brands … the maturity stage.

8. The company may eliminate the product … the product line.

9. Marketers must take the life cycle stage … each product … account.

8. Complete the sentences with the vocabulary on the text:

1. Every product progresses through a ....

2. A firm must be able to launch, modify, and delete products in response to ... in product life cycle.

3. The product life cycle consists of four stages - introduction, growth, maturity, and ....

4. In the introduction stage sales rise gradually but initially high marketing costs result in low profit or even in a ....

5. The marketing challenge at this stage is to make potential customers aware of the product's existence and its ... benefits, and uses.

6. The product should be priced to attract the particular ... ... that has the greatest desire and ability to buy the product.

7. In the growth stage, ... increase rapidly as the product becomes well known.

8. During the growth stage profits reach a ... and begin to decline.

9. At the beginning of the maturity stage sales are still .... but the rate of increase has slowed.

10. During a product's maturity stage, its ... ... may be strengthened by redesigned packaging or style change.

11. ... decline during this stage.

12. During the decline stage, sales volume ... sharply, profits continue to ... .

13. A product usually declines because of technological advances or environmental factors, or because consumers have switched to ... .

14. Marketers should know the ... stage of each product.

9. Match the stage with its characteristic.

a. growth b. introduction c. maturity d. decline

1. Customer awareness and acceptance of the product are low. Marketing costs are high. The price is high. Competition is low.

2. The product is well-known. Competition is high. Unit costs are low, so the price is lower too. The profits reach a peak.

3. Sales are high, but their rate of increase is low. Profits decline. Price competition increases. Refinements and extensions appear.

4. Sales decreases sharply. Profits are falling. Competition is decreasing. The only survivors are specialized firms.

10. Answer the following questions.

1. What is the product life cycle? Name the four stages of life cycle.

2. Are the stages of the product life cycle of the same length?

3. What are the main characteristics of introduction stage?

4. How are products priced in the introduction stage?

5. What is the marketing challenge of introduction stage?

6. What happens to the price in the growth stage?

7. What is management goal at the growth stage?

8. How can the maturity stage be described?

9. Why does a product usually decline?

10. What are the company’s activities in the decline stage?

11. Why is it necessary for a company to know the life cycle stage of each product?