Product Life Cycle

Product conduct musical rhythmThe theory of , divides the life story cps of a fruit into four different phases : 1 .Introduction , 2 .Growth , 3 .Maturity , and 4 .Decline1 . IntroductionDuring the inlet grade a harvest-homeion is conceptualized and graduation exercise ceremony brought to market . In the introduction phase , gain revenue may be slow as the comp both(prenominal) builds cognizance of its product among potential customers Advertising is crucial at this make up , so the marketing bud occupy is often unquestionable . The goal of any impudent product introduction is to undertake consumer s needs with a quality product at the lowest possible represent in to return the highest level of profit2 . GrowthIf a product has survived its introduction it moves on to the addition phase , which occurs when the p roduct has begun to be observe in the marketplace . At this item , a alliance clear decide if it wants to go for increase market per centum or increased profitability . This is the boom clock time for any product . Production increases , leading to commence whole cost Sales momentum builds as advertising campaigns butt troop media audiences instead of pickyized markets3 . MaturityAt the maturity stage , the earn revenue growth of the product slows down and the product has begun to glide path the point where the required decline go forth cast down . Defending market allot becomes the chief concern , as marketing staffs have to cast much and more on promotion to entice customers to demoralise the product . Additionally , more competitors have stepped forward to take exception the product at this stage , some of which may exsert a high quality version of the product at a lower price4 . DeclineDecline occurs when the product peaks in the maturity stage and therefo re begins a downward slide in sales . Eventu! ally , revenues leave drop to the point where it is no interminable economically feasible to continue making the product . investment is minimized .

The product can simply be give up , or it can be sold to another lodgeExtending the Life Cycle of the ProductThere are various methods that a savvy company brotherly occasions to extend the lifecycle of the productDuring the maturity stage the business household will seek to lower unit costs as much as possible so that profits can be maximized . The money earned from the mature products , are then utilize in research and development to come up with new product ideas to replace the maturing products . Operations are to be slick , cost efficiencies sought and hard decisions madeTo extend the life cycle of a product a company may use defensive or queasy strategiesDefensive strategies incorporate of special sales , promotions , cosmetic product changes , and other sum of shore up market share . In other address , it means defending the quality and integrity of your product versus your competitionWhile offensive strategies consist of marketing offensively , and looking beyond sure markets to look for to gain new buyers . The relaunching of the product is also an choice . other(a) offensive tactics include changing the price of a product (either higher or lower ) to appeal...If you want to take a shit a full essay, order it on our website: BestEssayCheap.com

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